NVIDIA Q1 results were great, but this AI stock could be more winner

The price of NVIDIA shares jumped after hours on Wednesday after a strong profit report.
Coreweave has made even more strong profits in sympathy for NVIDIA results.
If the AI boom continues, Coreweave looks well positioned as a winner.
10 shares we like better than Coreweave ›

All eyes were included Nvidia (Nasdaq: NVDA) Once again on Wednesday, when the leader of artificial intelligence (AI) released his first quarter profit report and not disappointed. The total revenue jumped 69% compared to the quarter a year ago to $ 44.1 billion, which beat the estimates of $ 43.3 billion. The company has published another round of blisters in the segment of the data center, where it leads to the AI revolution. Revenues from the Data Center jumped by 73% to $ 39.1 billion.

Further, the income report, the gross margin-coined for a $ 4.5 billion in their H20 chips, which are designed for the Chinese market-71.3%. In the lower row, the company reported a corrected profit per share of $ 0.81 by defeating consensus. Without the H20, NVIDIA would report $ 0.96 with a corrected profit per share.

Looking forward to the second quarter, NVIDIA again faces the sting of chip export restrictions, but still requires revenue of $ 45 billion ($ 8 billion more low than it would be without chip export limitations).

Investors seemed satisfied with the report, and NVIDIA shares ended the session after hours with a profit of 4.9%. The interesting thing is that a different stock of AI, Coreweave (Nasdaq: crwv)Overburns NVIDIA in the session after hours, recruiting 5.6%.

Image source: Getty Images.

Coreweave is an operator of generative AI-formed cloud computing services that allows companies to hire AI Computing Power (most of which are built using NVIDIA chips) if necessary.

Nvidia is a major Coreweve client and a key investor. Coreweave shares rose earlier in May after NVIDIA revealed a share in shares, with 24.2 million shares, which now cost more than $ 2.5 billion, or significantly more than the NVIDIA paid for them, when Coreweave became public at the end of March 2025.

Because Coreweave is much less than NVIDIA, at a market limit of $ 60 billion and its shares are more respected, it acts as a kind of super -charged NVIDIA version with even more AI exposure. The recent IPO takes advantage of the growing growth of the company, but also helps him deal with broad losses designed to spend his need for NVIDIA components and physical infrastructure for his business.

In their first public quarter, Coreweave revenue jumped 420% to $ 981.6 million. Its net loss increased from $ 129.2 million to $ 314.6 million in some of the IPO -related costs, including stock -based compensation, and interest costs were ballooned from $ 40.7 million to $ 263.8 million.

The corrected operational income, which excludes stock -based compensation, has jumped from $ 25 million to $ 162.6 million, showing that the main business is profitable.

NVIDIA still manages AI’s story as it is a clear leader in providing data centers with graphic processors and other components they need to become “AI factories”. However, the occurrence of the shares is more upgraded, as much of its potential AI growth is already priced at shares. At a $ 3.3 trillion market, it will take a lot for NVIDIA to surprise investors at this point.

The potential of Coreweave, on the other hand, is less understood and more difficult to model. As a new action, investors are still inventing their business model and whether it will be profitable in the long run.

The NVIDIA profit report adds another reason to be confident in the growth of Coreweave, as demand for AI infrastructure remains strong. We have already heard from the big NVIDIA technical peers and Capex forecasts remain strong. As Nvidia is pushing the full speed forward with its AI factories, the prospects for Coreweave growth also look strong.

If you are a scourge regarding NVIDIA’s prospects, investing in Coreweave looks like an intelligent move. NVIDIA’s infrastructure partner has already doubled from IPO on March 28 and can be collected further if the AI demand remains strong. Based on NVIDIA’s latest update, the bull case for both shares looks as strong as always.

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Jeremy Bauman has positions in NVIDIA. Motley Fool has positions and recommends NVIDIA. Motley Fool has a policy of disclosure.

Nvidia’s Q1 results were great, but this AI stock could be more winner, was originally published by Motley Fool

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