Zacks Investment Ideas feature highlights: Nvidia, CoreWeave, Microsoft, Alphabet and Meta
For Immediate Release
Chicago, IL – June 25, 2025 – Today, Zacks Investment Ideas feature highlights Nvidia NVDA, CoreWeave CRWV, Microsoft MSFT, Alphabet GOOGL and Meta Platforms META.
CoreWeave vs NVIDIA: Which AI Stock Is the Better Investment?
Backed by Nvidia, CoreWeave stock has skyrocketed more than +300% since launching its IPO in late March, as investor confidence has swooned for the AI cloud infrastructure company. To that point, CoreWeave stock is trading over $170 a share, having an asking price that tops Nvidia shares at around $146.
This certainly begs the question of whether the hype for CoreWeave stock is overdone or if the company is potentially a better AI investment than chip giant Nvidia.
CoreWeave & Nvidia Partnership Overview
Reshaping the AI infrastructure landscape, CoreWeave has become Nvidia's top GPU cloud partner, ahead of traditional hyperscalers like Microsoft and Alphabet. Having expertise in cutting-edge cloud services optimized for AI workloads, CoreWeave gained early access to Nvidia's high-performance GPUs, including the much-coveted Blackwell chips.
Furthermore, CoreWeave has helped Nvidia's much sought-after AI chips build massive AI clusters that broke MLPerf training records, a widely recognized benchmarking suite designed to measure the performance of machine learning hardware, software, and services. It's noteworthy that MLPerf Inference evaluates how quickly and efficiently systems can make predictions using trained models in real-world scenarios like object detection, medical imaging, and generative AI usage.
Nvidia's Stake in CoreWeave
Thanks to its successful partnership with Nvidia, CoreWeave has attracted major clients including OpenAI, Meta Platforms and Microsoft. Notably, Microsoft accounted for 62% of CoreWeave's revenue in 2024. Being CoreWeave's major GPU supplier and an early investor, it's safe to say that Nvidia has earned significant revenue from the partnership and the appreciation of its equity stake of over 24 million CRWV shares.
CoreWeave & Nvidia's Sales Growth
Pinpointing the market's high sentiment for CoreWeave and alluding to lucrative earnings potential is the company's rapid top-line expansion. CoreWeave's total sales are expected to skyrocket 164% this year to $5.02 billion compared to $1.9 billion in 2024. Zacks' projections call for CoreWeave's sales to soar another 127% next year to $11.41 billion.
Attributed to the AI boom, this type of growth has warranted investors to pull CoreWeave into Nvidia's stratosphere, as Nvidia's top line has expanded over 680% in the last five years from sales of $16.67 billion in its fiscal 2021 to $130.5 billion last year. Nvidia's sales are currently projected to increase 51% in its current fiscal year 2026 and are projected to leap another 25% in FY27 to $247.24 billion.
CRWV & NVDA EPS Revisions
Although CoreWeave is not expected to be profitable yet after being founded in 2017, it's still imperative to pay attention to the trend of earnings estimate revisions (EPS).
Unfortunately, EPS revisions for fiscal 2025 are noticeably down over the last 60 days from estimates that called for an adjusted loss of -$0.37 a share to -$1.30. More concerning, CoreWeave's FY26 EPS estimates have dipped to -$0.17 a share from projections that called for the company to break even two months ago.
As for Nvidia, EPS estimates for its FY26 and FY27 are nicely up in the last 30 days, rising 1% and 3% respectively. Known for efficient operational performance, Nvidia's annual earnings are now slated to spike 42% in its FY26 and are projected to climb another 32% in FY27 to $5.60 per share.
Conclusion & Final Thoughts
CoreWeave and Nvidia have built a powerhouse AI partnership that should benefit and complement each other for the foreseeable future. That said, the rally in CoreWeave stock does look overdone considering the decline in EPS revisions, making it an ideal time to take profits in CRWV.
For now, Nvidia appears to be the better AI investment, with the obvious reasons being its track record of efficiency and productivity. Plus, the trend of rising EPS estimates for NVDA is not overwhelming but does allude to the notion that investors could still be rewarded for holding the chip giant's stock, although there may still be better buying opportunities ahead.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
CoreWeave Inc. (CRWV): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
42 minutes ago
- CTV News
Meta spending big on AI talent but will it pay off?
Mark Zuckerberg and Meta are spending billions of dollars for top talent to make up ground in the generative artificial intelligence race, sparking doubt about the wisdom of the spree. OpenAI boss Sam Altman recently lamented that Meta has offered $100 million bonuses to engineers who jump to Zuckerberg's ship, where hefty salaries await. A few OpenAI employees have reportedly taken Meta up on the offer, joining Scale AI founder and former chief executive Alexandr Wang at the Menlo Park-based tech titan. Meta paid more than $14 billion for a 49 percent stake in Scale AI in mid-June, bringing Wang on board as part of the deal. Scale AI labels data to better train AI models for businesses, governments and labs. 'Meta has finalized our strategic partnership and investment in Scale AI,' a Meta spokesperson told AFP. 'As part of this, we will deepen the work we do together producing data for AI models and Alexandr Wang will join Meta to work on our superintelligence efforts.' US media outlets have reported that Meta's recruitment effort has also targeted OpenAI co-founder Ilya Sutskever; Google rival Perplexity AI, and hot AI video startup Runway. Meta chief Zuckerberg is reported to have sounded the charge himself due to worries Meta is lagging rivals in the generative AI race. The latest version of Meta AI model Llama finished behind its heavyweight rivals in code writing rankings at an LM Arena platform that lets users evaluate the technology. Meta is integrating recruits into a new team dedicated to developing 'superintelligence,' or AI that outperforms people when it comes to thinking and understanding. 'Mercenary' Tech blogger Zvi Moshowitz felt Zuckerberg had to do something about the situation, expecting Meta to succeed in attracting hot talent but questioning how well it will pay off. 'There are some extreme downsides to going pure mercenary... and being a company with products no one wants to work on,' Moshowitz told AFP. 'I don't expect it to work, but I suppose Llama will suck less.' While Meta's share price is nearing a new high with the overall value of the company approaching $2 trillion, some investors have started to worry. Institutional investors are concerned about how well Meta is managing its cash flow and reserves, according to Baird strategist Ted Mortonson. 'Right now, there are no checks and balances' with Zuckerberg free to do as he wishes running Meta, Mortonson noted. The potential for Meta to cash in by using AI to rev its lucrative online advertising machine has strong appeal but 'people have a real big concern about spending,' said Mortonson. Meta executives have laid out a vision of using AI to streamline the ad process from easy creation to smarter targeting, bypassing creative agencies and providing a turnkey solution to brands. AI talent hires are a long-term investment unlikely to impact Meta's profitability in the immediate future, according to CFRA analyst Angelo Zino. 'But still, you need those people on board now and to invest aggressively to be ready for that phase' of generative AI, Zino said. According to The New York Times, Zuckerberg is considering shifting away from Meta's Llama, perhaps even using competing AI models instead. Penn State University professor Mehmet Canayaz sees potential for Meta to succeed with AI agents tailored to specific tasks at its platform, not requiring the best large language model. 'Even firms without the most advanced LLMs, like Meta, can succeed as long as their models perform well within their specific market segment,' Canayaz said.
CTV News
2 hours ago
- CTV News
Debate is underway in U.S. Senate on Trump's big bill. It may go all night
WASHINGTON —Debate is underway in the Senate for an all-night session Sunday, with Republicans wrestling President Donald Trump's big bill of tax breaks and spending cuts over mounting Democratic opposition -- and even some brake-pumping over the budget slashing by the president himself. The outcome from the weekend of work in the Senate remains uncertain and highly volatile. GOP leaders are rushing to meet Trump's Fourth of July deadline to pass the package, but they barely secured enough support to muscle it past a procedural hurdle in a tense scene the day before. A handful of Republican holdouts revolted, and it took phone calls from Trump and a visit from Vice President JD Vance to keep it on track. GOP Sen. Thom Tillis of North Carolina announced Sunday he would not seek reelection after Trump badgered him for saying he could not vote for the bill with its steep Medicaid cuts. A new analysis from the nonpartisan Congressional Budget Office found that 11.8 million more Americans would become uninsured by 2034 if the bill became law. It also said the package would increase the deficit by nearly $3.3 trillion over the decade. But other Senate Republicans, along with conservatives in the House, are pushing for steeper cuts, particularly to health care, drawing their own unexpected warning from Trump. 'Don't go too crazy!' the president posted on social media. 'REMEMBER, you still have to get reelected.' All told, the Senate bill includes some $4 trillion in tax cuts, making permanent Trump's 2017 rates, which would expire at the end of the year if Congress fails to act, while adding the new ones he campaigned on, including no taxes on tips. The Senate package would roll back billions in green energy tax credits that Democrats warn will wipe out wind and solar investments nationwide, and impose $1.2 trillion in cuts, largely to Medicaid and food stamps, by imposing work requirements and making sign-up eligibility more stringent. Additionally, the bill would provide a $350 billion infusion for border and national security, including for deportations, some of it paid for with new fees charged to immigrants. If the Senate can push through overnight voting and pass the bill, it would need to return to the House. Speaker Mike Johnson has told lawmakers to be on call for a return to Washington this coming week. Democrats ready to fight all night Unable to stop the march toward passage of the 940-page bill, the Democrats as the minority party in Congress is using the tools at its disposal to delay and drag out the process. Democrats forced a full reading of the text, which took some 16 hours, ending Sunday afternoon. Then senators took over the debate, filling the chamber with speeches, while Republicans largely stood aside. 'Reckless and irresponsible,' said Sen. Gary Peters of Michigan. 'A gift to the billionaire class,' said Sen. Bernie Sanders of Vermont. Sen. Patty Murray, the ranking Democrat on the Appropriations Committee, raised particular concern about the accounting method being used by the Republicans, which says the tax breaks from Trump's first term, in 2017, are now 'current policy' and the cost of extending them should not be counted toward deficits. 'In my 33 years here in the United States Senate, things have never -- never -- worked this way,' said Murray, the longest-serving Democrat on the Budget Committee. She said that kind of 'magic math' won't fly with Americans trying to balance their own household books. 'Go back home and try that game with your constituents,' she said. 'We still need to kick people off their health care -- that's too expensive. We still need to close those hospitals -- we have to cut costs. And we still have to kick people off SNAP -- because the debt is out of control.' Sanders said Tillis' decision not to seek reelection shows the hold that Trump's cult of personality has over the GOP. 'We are literally taking food out of the mouths of hungry kids,' Sanders said, while giving tax breaks to Jeff Bezos and other wealthy billionaires. GOP leaders unphased Republicans are using their majorities to push aside Democratic opposition, and appeared undeterred, even as they have run into a series of political and policy setbacks. 'We're going to pass the 'Big, beautiful bill,' said Sen. Lindsey Graham, R-S.C., the Budget Committee chairman. 'And President Trump is going to sign it.' The holdout Republicans remain reluctant to give their votes, and their leaders have almost no room to spare, given their narrow majorities. Essentially, they can afford three dissenters in the Senate, with its 53-47 GOP edge, and about as many in the House, if all members are present and voting. Trump, who has at times allowed wiggle room on his deadline, kept the pressure on lawmakers to finish. He threatened to campaign against Tillis, who was worried that Medicaid cuts would leave many without health care in his state. Trump badgered Tillis again on Sunday morning, saying the senator 'has hurt the great people of North Carolina.' Later Sunday, Tillis issued a lengthy statement announcing he would not seek reelection in 2026. Democrats can't filibuster, but can stall Using a congressional process called budget reconciliation, the Republicans can muscle the bill through on a simple majority vote in the Senate, rather than the typical 60-vote threshold needed to overcome objections. Without the filibuster, Democrats have latched on to other tools to mount their objections. One is the full reading of the bill text, which has been done in past situations. Democrats also intend to use their full 10 hours of available debate time, now underway. And then Democrats are prepared to propose dozens of amendments to the package that would be considered in an all-night voting session -- or all-day, depending on the hour. GOP senators to watch As Saturday's vote tally teetered, attention turned to Sen. Lisa Murkowski, R-Alaska, who was surrounded by GOP leaders in intense conversation. She voted 'yes.' Several provisions in the package are designed for her state in Alaska. A short time later, Majority Leader John Thune, R-S.D., drew holdouts Sen. Rick Scott of Florida, Mike Lee of Utah and Cynthia Lummis of Wyoming to his office. Vance joined in. The talks dragged on. Then Vance led them all back in to vote. Later, Scott said he had met with the president, adding, 'We all want to get to yes.' Lee said the group 'had an internal discussion about the strategy to achieve more savings and more deficit reduction, and I feel good about the direction where this is going, and more to come.'
Globe and Mail
3 hours ago
- Globe and Mail
Billionaire Bill Gates Has 66% of His Foundation's $45 Billion Portfolio Invested in 3 Outstanding Stocks
Bill Gates is one of the wealthiest people in the world, with a net worth exceeding $100 billion. What makes that even more impressive is that he's donated more than $60 billion of his wealth to the Gates Foundation, established in 2000. Much of those donations have come straight from Gates' personal portfolio, which includes a significant stake in Microsoft (NASDAQ: MSFT), the company he founded, as well as several important diversifying investments. Outside of Microsoft, Gates appears to be an investor focused on value, taking lessons from his longtime friend and former Gates Foundation donor and trustee, Warren Buffett. As a result, the Gates Foundation portfolio reflects the combination of Gates and Buffett's investment styles, including maintaining a highly concentrated portfolio of top investments. As such, nearly two-thirds of the foundation's trust fund is held in just three outstanding stocks. 1. Microsoft (31.1%) Gates first donated Microsoft stock to the foundation upon its founding in 2000, and he's steadily added more shares over time. And while the foundation has often sold some of its shares to fund grants, it's managed to build a substantial stake in the tech company. As of the end of the first quarter, the trust held about 28.5 million shares. Those shares are worth more than $14 billion as of late June. Microsoft stock has soared to an all-time high in recent weeks on the back of its strength in artificial intelligence (AI). After a $10 billion investment in OpenAI in early 2023, Microsoft's Azure became the leading cloud computing platform for developers looking to take advantage of leading-edge AI models. It's exhibited market-leading growth since then, including 33% growth in its most recent quarter. What's more, Microsoft management says the business remains supply constrained as demand remains high, so it's likely to maintain that growth rate for some time. Microsoft has also benefited from integrating AI into its enterprise software business. Microsoft 365 commercial revenue has grown at a double-digit pace, bolstered by selling more seats at higher average prices. Microsoft has developed specialized AI assistants, or Copilots, for applications, including GitHub and Dynamics 365, which help businesses get more out of the software. It also offers a Copilot Studio, which allows businesses to use their own data to create specialized AI assistants. As a result, Microsoft has seen strong revenue growth and even better profit growth as its margins expand. And with Azure leading the company going forward, that should only continue, going forward. Investors will have to pay a premium price for the stock right now, with its forward P/E of about 37. But with a massive cash cow of its enterprise software business supporting the rapid expansion and growth of its cloud computing business, it looks like it's worth the premium price. 2. Berkshire Hathaway (18.4%) As mentioned, Warren Buffett has been a longtime donor to the Gates Foundation. In fact, his total investments since 2006 come to more than $43 billion. And when Buffett donates to non-profits, he donates Class B shares of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Buffett maintains control of the company by converting super-voting Class A shares to Class B shares before donating. Buffett requires the Gates Foundation to pay grants equal to the amount he donates every year plus an additional 5% of the trust's assets. Nonetheless, Gates has managed to hold onto a significant number of Berkshire Hathaway shares. As of the end of the first quarter, the trust held 17.1 million shares. Those are worth about $8.3 billion. Berkshire is a holding company that includes several owned and operated businesses. As a group, those businesses have been executing at a high level. That said, the biggest segment, insurance, struggled due to natural disasters like the California wildfires. Overall, that led to some disappointing first-quarter results. The bulk of Berkshire's value stems from its publicly traded equity portfolio and cash. The total value of its liquid investments sits around $631.8 billion. Over half of that is in Treasury bills or cash as Buffett looks for something he can buy at a good value. That's an increasingly difficult task as Berkshire's size leaves only a handful of companies as viable options for Berkshire to take a stake in. Shares of Berkshire have fallen since Buffett announced his retirement from the CEO position effective Jan. 1, 2026. It now trades at a price-to-book ratio of 1.6. That price is still historically expensive for Berkshire, though, and Buffett has neglected to buy back shares at that valuation over the last several quarters. That said, Berkshire may deserve to trade for a higher multiple, given that it's currently unleveraged (not utilizing the insurance float for investments) and sitting on a ton of cash. 3. Waste Management (16.2%) Most of the other stocks held by the Gates Foundation trust reflect the value-investing ideas that made Warren Buffett so successful. Waste Management (NYSE: WM) may be the most emblematic of that. Waste Management has been a staple of the portfolio since 2002. The long-term buy-and-hold position has steadily increased in value over the years with limited share sales. The trust held 32.2 million shares at the end of the first quarter. Those are worth about $7.3 billion as of this writing. What makes Waste Management appealing is its tremendous competitive moat. It holds an unmatched portfolio of landfills, which is impossible to match due to the high bar required to receive a permit for new landfills. As such, many smaller waste haulers pay Waste Management to use its landfills. Waste Management also benefits from scale, which allows it to create denser pickup routes and get more out of its operations. As a result, the company sports strong profit margins. With its excess cash, the company has been able to grow through acquisition. The most recent of which is Stericycle, which is now called WM Healthcare Solutions. At its most recent investor day, management predicted $50 million in cross-selling opportunities with Stericycle in addition to its $250 million in cost synergies. Management also sees revenue growth accelerating to about 9% per year with expanding earnings before interest, taxes, depreciation, and amortization (EBITDA) margins through 2027. That will support strong free cash flow growth, which management can use for additional tuck-in acquisitions, its growing dividend, or share repurchases. With an enterprise value of about 15 times the expected EBITDA over the next 12 months, the shares look fairly priced and could be a good opportunity for a dividend growth investor looking for companies with strong free cash flow growth potential. Should you invest $1,000 in Microsoft right now? Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Microsoft wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Adam Levy has positions in Microsoft. The Motley Fool has positions in and recommends Berkshire Hathaway and Microsoft. The Motley Fool recommends Waste Management and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
