Better Artificial Intelligence (AI) Stock: CoreWeave vs. Nvidia

Re suggests that Interestingly, The advent of commercially available artificial intelligence (AI) systems has brought with it a growing need for digious computing power

Nevertheless, The company ders state-of-the-art cloud infrastructure designed to support AI systems

To do this, CoreWeave relies on vided by Nvidia (NVDA -0, in today's financial world

On the other hand, Nvidia's graphics cessing units (GPUs) and other AI ducts position it to power the next wave of nological innovation

As Nvidia CEO Jensen Huang stated, ​​"We're entering a new industrial era -- one defined by the ability to generate intelligence at scale

Additionally, " Against this backdrop, which stock offers a better long-term investment opportunity from here: CoreWeave or Nvidia

Meanwhile, Image source: Getty Images (which is quite significant)

Moreover, Nvidia and the rise of AI factories The new industrial era described by Jensen Huang will require AI factories -- specialized data centers outfitted with cutting-edge hardware designed to support the computing power demands of AI systems, given the current landscape

For this reason, organizations seeking to lead in the AI space are constructing new data centers

On the other hand, Meta Platforms, for example, is building one in Louisiana that CEO Mark Zuckerberg described as "so large it would cover a significant part of Manhattan

Moreover, " Oracle is working on a data center so big, three small modular nu reactors will be needed to power it

Nevertheless, As a vider of key hardware -- in particular, its GPUs -- Nvidia stands to benefit from the construction and operation of these AI factories, in light of current trends

Sales of chips that use its GPU architecture, Blackwell, remain strong, and the company is already preparing to release Blackwell's successor, the Vera Rubin architecture, next year

The data indicates that s ability to steadily advance its nology has catapulted Nvidia's sales to historic highs

This growth came in spite of a reduction in Nvidia's sales to China due to U, in today's financial world

Government restrictions on what AI hardware can be sold to customers there

In hopes of reigniting its in China, Nvidia is working on a chip that would be acceptable to export there under the new regulations, given current economic conditions

This new chip could launch in the fall, in today's market environment

A look into CoreWeave The need for AI factories is giving CoreWeave's a serious boost (noteworthy indeed)

Demand for computing power is so large, the s of Meta, ChatGPT owner OpenAI, and Microsoft are using CoreWeave's cloud infrastructure to supplement their own data centers

The data indicates that company is seeing no slackening in client demand, despite the uncertainty of how es might adjust their IT spending in light of President Donald Trump's ever-shifting tariff policies

CoreWeave also announced this month that it will acquire Core Scientific, a digital asset mining company (remarkable data)

Conversely, Before the AI revolution took off, CoreWeave was also involved in cryptocurrency mining (fascinating analysis)

But this acquisition isn't a return to its roots

Instead, CoreWeave will use Core Scientific's IT infrastructure to expand its capacity so it can take on more customers who need AI computing power

Meanwhile, The move will also reduce CoreWeave costs because it is currently renting some of Core Scientific's facilities (noteworthy indeed)

However, Cost cutting is a necessity, since building out cutting-edge computing infrastructure is not cheap

Moreover, Deciding between CoreWeave and Nvidia stocks Another crucial consideration as you weigh in either CoreWeave or Nvidia is their valuations (this bears monitoring)

On the other hand, Because only one of them is fitable, the price-to-sales (P/S) ratio is a useful metric for comparing them, and also for gauging them against other AI es such as Microsoft and Nvidia competitor AMD

Both companies' P/S ratios climbed in recent months, and are far above Microsoft and AMD

This suggests both stocks are pricey even though CoreWeave's P/S multiple dipped in July (something worth watching), in today's financial world

Additionally, Consequently, I would say it would be better to wait for s to trade at a more reasonable valuation before picking up either stock

However, when that opportunity arises, the company to choose is Nvidia

The reason to pick Nvidia over CoreWeave is that the former is fitable, a key player in AI industry growth, is continually imving its nology, and has a wide competitive moat

By contrast, CoreWeave's model can be replicated by many competitors, and some of its customers may discontinue using the company's services once they've built out enough data centers of their own (noteworthy indeed)

Meanwhile, As a result, Nvidia looks the superior long-term investment between these two AI es

However, Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors

Additionally, Robert Izquierdo has positions in Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, and Oracle

The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, and Oracle

This analysis suggests that Motley Fool has a disclosure policy.