Key Points
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Nvidia (NASDAQ: NVDA) has 91% of its equity portfolio invested in artificial intelligence, with 86% in CoreWeave (NASDAQ: CRWV) and 5% in Arm Holdings (NASDAQ: ARM).
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CoreWeave reported a 134% revenue increase to $1.4 billion and an adjusted EBITDA of $838 million, while its revenue backlog surged 271% to $55.6 billion, driven by major contracts with OpenAI and Meta.
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Wall Street predicts a median 58% share price increase for CoreWeave and 57% for Arm in the next year, with target prices set at $125 and $180 respectively.
CoreWeave’s Financial Performance
CoreWeave, recognized as the best AI cloud provider, specializes in cloud computing services optimized for AI and compute-intensive workloads. It achieved record results in MLPerf benchmarks, outpacing major competitors such as Amazon and Microsoft. For Q3, CoreWeave’s financials reflected strong growth; revenue increased 134% year-over-year, while revenue backlog jumped to $55.6 billion.
Arm Holdings’ Market Position
Arm, a leader in semiconductor architecture, holds a 99% market share in smartphone chips and has gained over 10% market share in data centers in the past three years. Recent quarterly adjustments indicated a 30% growth in earnings, with expectations of 23% annual increases through March 2027.
