AI Stock Poised for Palantir-Like Growth - Reasons Explained
Artificial Intelligence (AI) continues to reshape industries worldwide, with the International Monetary Fund predicting that it could affect 40% of jobs globally, and Goldman Sachs estimating a potential increase of at least $7 trillion to the global GDP by 2033. In the race to capitalize on this burgeoning technology, investors have flocked to companies like Nvidia and Palantir Technologies, whose AI tools have been revolutionary.
Now, a new contender, CoreWeave (NASDAQ: CRWV), has entered the scene after its initial public offering (IPO) in March 2025. Two months on, CoreWeave's shares have surged over 209%, with the company projecting a 2025 revenue of $5.1 billion. The company's strategic move to appoint Carl Holshouser as Vice President of Government Affairs is also noteworthy. Holshouser's extensive experience on Capitol Hill and in technology will likely aid CoreWeave as it navigates the increasingly pertinent AI regulation landscape.
CoreWeave focuses on cloud infrastructure for generative AI, differentiating it from companies like Qualcomm, which primarily operate in edge AI. Although CoreWeave's business model has shown success, some argue that it was largely due to the initial AI boom. With enterprise-level AI adoption still in its infancy, it remains to be seen how things will play out for CoreWeave and the sector as a whole.
Recently, CoreWeave reported an adjusted non-GAAP net loss of $150 million in the last quarter, compared to $24 million the previous year. Despite the financial shortfall, CoreWeave's adjusted EBITDA for Q1 2025 increased almost sixfold compared to Q1 2024, signaling potential for growth. However, the company's high capital intensity presents a risk, as increasing the scale of its graphics processing unit (GPU) data centers isn't cheap.
Investors should also note that CoreWeave does not offer dividends, making it more of a growth stock with notable upside potential but also substantial risks. Meanwhile, another company worth watching is BigBear (NYSE: BBAI). Its stock saw a 23.3% rally in a single session due to increased interest in its performance analytics focus area. However, BigBear's reputation lags behind Palantir's, with the company experiencing three CEO swaps since its IPO and modestly projected full-year revenue growth of 1-14%.
Disclaimer: This content should not be considered investment advice. Investing carries risk, and your capital could be at stake.
- The rise of CoreWeave (NASDAQ: CRWV), a newcomer in the AI sector, has caught the attention of investors, particularly those interested in finance and investing, as its shares surged over 209% following its IPO in March 2025 and Projected revenue of $5.1 billion for 2025.
- In the stock-market, both CoreWeave and BigBear (NYSE: BBAI) are companies to watch, with the former's high-growth potential in generative AI cloud infrastructure and the latter's focus on performance analytics, despite BigBear's less impressive financial performance and reputation compared to the likes of Palantir Technologies. However, regardless of the chosen company, it's essential to remember that technology, including artificial-intelligence, can bring significant opportunities and risks in the investment landscape.
