The advent of commercially available Artificial Intelligence (AI) system has brought it with the increasing requirement of eccentric computing power. New Coreweave ,CRWV -6.94%,Which was his initial public offering On 28 March, stepped up to help meet that need.

The company distributes state -of -the -art cloud infrastructure designed to support the AI system. To do this, depends on the technique provided by Coreweave Nvidia ,NVDA -0.42%,NVIDIA’s graphics processing units (GPU) and other AI products get this place to provide electricity to the next wave of technological innovation.

As Nvidia CEO Jensen Huang said, “We are entering a new industrial age – one is defined by the ability to generate intelligence on a scale.” Against this background, which stock provides a better long -term investment opportunity from here: Coreweave or Nvidia?

Rise of Nvidia and AI factories

The new industrial era described by Jensen Huang will require AI factories special data centers designed with state-of-the-art hardware designed to support computing power demands of the AI system.

For this reason, organizations willing to lead in AI space are building new data centers. Meta platformFor example, CEO Mark Zuckerberg is creating one in Louisiana that “covered an important part of such a large manhattan.” Oracle Working at a data center, so three small modular nuclear reactors will be required to give it strength.

As a provider of major hardware – especially, its GPU – NVidia stands to benefit from the construction and operation of in AI factories. The sale of chips that uses its latest GPU architecture, Blackwell, remains strong, and the company is already preparing to release Blackwell’s successor, Vera Rubin Architecture, next year.

Its ability to continuously pursue its technology has brought the sale of Nvidia to a historic high level. In its financial 2025 (which ended on 26 January), the revenue rose 114% to a record of $ 130.5 billion.

Fiscal 2026 is closed for a strong start with the first quarter revenue of $ 44.1 billion, while an increase of 69% from the period of pre-year, while an increase of 69%. operating income The 28% rose to $ 21.6 billion. NVIDIA hopes that sales continue to increase in fiscal Q2, which estimates $ 45 billion in revenue, more than $ 30 billion in the pre-year period.

This growth came despite the reduction of NVidia sales to China due to the US government sanctions, which could be sold to customers there. In the hope of ruling its business in China, Nvidia is working on a chip that will be acceptable to export there under the new rules. This new chip may be launched in the decline.

A look at the Korvive

The requirement of AI factories is giving a serious boost to the business of Korwave. The demand for computing power is so big, the choice of meta, Puffy Owner Openai, and Microsoft Cloud infrastructure of Coreweave is using Coreweave’s cloud infrastructure to complement their own data centers. This helped the Korwave Drive to $ 981.6 million in the first quarter, which is a 420% year-over growth.

The company is not seeing no dull in the demand for client, despite the uncertainty of how business President Donald Trump can adjust his IT expenses in the light of sometimes shifting Tariff policiesCoreweave management is guiding to speed up $ 1.1 billion in Q2 for sale, which exceeds $ 395 million in the period of pre-year.

Coreweave also announced this month that he would acquire Original scientistA digital asset mining company. Before the AI Revolution flew, Korvive also included Cryptocurrency miningBut this acquisition is not the return of its roots.

Instead, coreweave will use the IT infrastructure of the core scientific to expand its ability to carry more customers who require AI computing power. The move will also reduce the coroaveve cost as it is currently renting some facilities of core scientific.

Cost cuts are a requirement, because the construction of state -of -the -art computing infrastructure is not cheaper. In Q1, Coreweave caused a loss of $ 27.5 million, as its operational expenses rose from 487% to $ 1 billion.

Coreweave and Nvidia Stock Decision Taking Decision

Another important idea as you weigh investment in either Korwave or Nvidia, they are evaluated. Because only one of them is beneficial, Price-to-sell , AMD,

Data by Ycharts,

The P/S ratio of both companies climbed in recent months, and is far above Microsoft and AMD. This shows that both shares are priced, even though the P/S of Korvev was immersed in July.

As a result, I would say that it would be better to wait for shares on a more appropriate assessment before taking shares. However, when that opportunity arises, the company is Nvidia to choose.

The reason for taking Nvidia on the Korwave is that pre -profitable, a prominent player in the development of the AI industry, is constantly improving his technology, and a broad competitive gap. In contrast, Coreweave’s business model can be repeated by many contestants, and some of its customers can close using the services of the company, when they have created their own adequate data centers.

As a result, Nvidia looks like a better long -term investment between these two AI businesses.