• Skip to main content
  • Skip to secondary menu
  • Skip to footer

Analysis.org

Intelligence Analysis in Market Context

  • Sponsored Post
    • Make a Contribution
  • Job Board
  • Market Research Reports
    • Technology Analysis
    • Events
  • Domain Analysis
  • About
  • Contact

Why I Bought Nvidia and Not CoreWeave

September 15, 2025 By Analysis.org

When choosing where to allocate capital in the AI infrastructure super-cycle, the temptation to back a rising star like CoreWeave is undeniable. On the surface, it looks like the quintessential high-growth disruptor—born out of crypto mining, pivoted into GPU cloud services, and now positioned as the “AI-first cloud” with deep Nvidia backing. Yet when I weighed my options, I chose to buy Nvidia stock rather than CoreWeave. The reasoning lies in durability, scale, and risk-adjusted return, and a close look at CoreWeave’s strengths, weaknesses, opportunities, and threats only reinforced that decision.

CoreWeave’s strengths are real. The company is laser-focused on GPU-intensive workloads, which gives it an edge over hyperscalers like AWS or Azure that still juggle broad portfolios of services. Its close partnership with Nvidia ensures priority access to cutting-edge hardware like H100 and Blackwell GPUs, and its leaner, purpose-built infrastructure allows it to provision compute faster and cheaper for AI developers. In the middle of a GPU shortage, this agility has made CoreWeave a lifeline for startups and enterprises desperate for compute. For a company still relatively young, the fact that it has carved out this position against trillion-dollar hyperscalers is impressive.

But the weaknesses cannot be ignored, and they ultimately tipped my hand toward Nvidia. CoreWeave is dependent on capital-intensive expansion—leasing GPUs, building data centers, and raising money to finance it all. Its product scope is narrow: customers may rent GPUs from CoreWeave, but they still rely on AWS, Microsoft, or Google for the rest of their workloads. That creates dependency risk and leaves CoreWeave vulnerable to being squeezed into a specialized niche. Most critically, CoreWeave’s fate is deeply tied to Nvidia’s pricing power and supply pipeline. Nvidia controls the hardware roadmap, sets margins, and has the leverage to capture most of the value in the stack. By buying Nvidia directly, I skip the dependency and own the very company dictating the terms of CoreWeave’s existence.

Opportunities for CoreWeave are vast—it could become the “fourth cloud,” expand internationally, or branch into inference hosting and managed AI services. The demand for compute is not a passing fad, and CoreWeave could ride this wave to scale rapidly. But here again, Nvidia stands to capture the broader upside. Whether CoreWeave or another challenger wins market share, every rack of GPUs they deploy is built on Nvidia silicon. It doesn’t matter whether the customer rents from CoreWeave, Azure, or a research consortium in Germany—Nvidia benefits. CoreWeave is a levered bet on one execution path, Nvidia is the toll booth on all of them.

The threats to CoreWeave are sharper. Hyperscalers are racing to build their own GPU fleets, while also investing in custom silicon like AWS Trainium and Google TPU to lessen reliance on Nvidia. If these alternatives gain traction, CoreWeave could be outcompeted both on cost and scope of services. Its debt-heavy model makes it sensitive to higher rates, and its narrow dependence on Nvidia could become a choke point if regulation, antitrust, or export controls shift the supply chain. Nvidia, by contrast, is the bottleneck itself. It is not hostage to any single customer and maintains leverage across the ecosystem.

This is why my capital went to Nvidia. It is the foundation of the AI factory build-out, selling the picks and shovels that every player—CoreWeave included—depends on. CoreWeave may grow faster in percentage terms if it executes flawlessly, but Nvidia captures the super-cycle no matter which cloud or startup wins. In a world of uncertain execution, customer concentration, and financing risks, Nvidia offers not just growth but durability. CoreWeave is a fascinating bet on specialization; Nvidia is the meta-bet on the entire AI era.

Filed Under: Briefing

Footer

Recent Posts

  • CoreWeave’s Monolith AI Deal: What It Means for NVIDIA Shareholders
  • Anthropic, Deloitte, and the Normalization of AI in Corporate Workflows
  • AMD’s Leap from Challenger to Established AI Power
  • Nvidia, Broadcom, and AMD: Mapping the Next Blue Oceans in the AI Super-Cycle
  • European IPO Crown Goes to Stockholm
  • Chinese Travel Equities Slip as Golden Week Data Disappoints
  • When Professions Meet Automation: A Map of Displacement, Adaptation, and Renewal
  • Electronic Arts’ Historic Buyout Buzz Sparks Market Frenzy
  • Intel Surges on Apple Investment Speculation and Nvidia Partnership Momentum
  • Accenture’s AI Paradox: Growth in Bookings, Decline in Stock

Media Partners

Photo Studio
Travel MKTG
ZGM
Media Instances
Dossier
Technology Conference
Policymaker
Opinion
Nameable
Side Hustle Art

Media Partners

Studio Tel Aviv
Transportational
Market Analysis
Syndicator
S3H
Blockchaining
Domain Aftermarket
Photo Contest
Calendarial
Publishing House

Copyright © 2017 Analysis.org

Technologies, Market Analysis & Market Research Reports

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT