coreweave (NASDAQ:CRWV) has been in the spotlight since its initial public offering last year, thanks to its role in the artificial intelligence (AI) market. The company is currently renting out much-needed capacity for AI workloads, which has led to explosive growth and stock price performance. CoreWeave is further supported Nvidiathe AI giant owns a stake in the company.
All of this has put CoreWeave in the headlines, but this doesn’t necessarily mean it will make the biggest AI advances over time. The next AI pick may outperform that.
Will AI create the world’s first millionaire? Our team published a report on one little-known company called an “essential monopoly” that provides critical technology needed by both Nvidia and Intel. Continued “
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wide customer base
This company also operates in the cloud market, but is much larger and offers a broader range of services than CoreWeave. what i’m talking about is alphabet(NASDAQ:GOOG)(NASDAQ:Google). While CoreWeave focuses on AI, Alphabet sells both AI and non-AI cloud products. This is a positive thing, as it allows Alphabet to benefit from its AI growth story while generating revenue from a wider range of customers.
Alphabet is no stranger to the cloud space, as it has been growing Google Cloud since 2008 and has become a significant player in the industry. This is a positive thing, as companies that already rely on Google Cloud may turn to it in the future for their AI needs. The company is therefore well-positioned to benefit from the AI revolution.
And those gains have already begun, with Google Cloud’s revenue surging in recent quarters. For example, in the most recent period, cloud revenue increased 48% to $17 billion, driven by demand for AI infrastructure and solutions. This shows that AI is boosting already successful businesses.
From Gemini to Chips
From its large-scale language model Gemini to its self-designed chips, Alphabet’s AI developments serve cloud customers, but also contribute to the Google search business, the company’s main source of revenue. Alphabet makes most of its revenue through advertising across Google, and Gemini contributes in two ways. This improves search results, keeps people searching on Google, and streamlines the advertising process. All of this could prompt advertisers to increase their spending on Google Ads.
Next, consider stock performance. CoreWeave has soared about 100% over the past year, while Alphabet is up about 85%.
Both stocks have clearly performed well in this relatively short period of time, and I’m optimistic about their future as well. That said, Alphabet is an unstoppable revenue stream due to its extensive cloud business and strength in Google Search. So even if CoreWeave makes headlines, Alphabet could outperform in the long run.
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Adria Cimino has no position in any stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy.
