Nvidia Reports Impressive Q1 Earnings Amid AI Growth
Nvidia (NASDAQ: NVDA) released its first-quarter earnings report on Wednesday, showing strong results. Revenue rose 69% year-over-year to $44.1 billion, exceeding expectations of $43.3 billion. Notably, data center revenue surged 73% to $39.1 billion, driven by AI demand.
The adjusted gross margin, excluding a $4.5 billion write-down related to its H20 chips for the Chinese market, stood at 71.3%. Adjusted earnings per share reached $0.81, beating the consensus, while the adjusted EPS would have been $0.96 without the H20 charge.
Outlook for Q2
Despite facing chip export restrictions, Nvidia predicts $45 billion in revenue for the second quarter. This forecast is $8 billion lower than projections that would apply without such restrictions.
Following the news, Nvidia’s stock rose 4.9% in after-hours trading. In contrast, CoreWeave (NASDAQ: CRWV) outperformed Nvidia with a 5.6% gain.
CoreWeave’s Role in AI
CoreWeave provides cloud computing services focused on generative AI, allowing companies to rent computing power primarily based on Nvidia hardware. Nvidia holds a significant investment in CoreWeave, which is approximately valued at over $2.5 billion for shares acquired during its IPO in March 2025.
While smaller with a $60 billion market cap, CoreWeave’s operations mirror Nvidia’s potential but with greater volatility. Its first-quarter revenue soared 420% to $981.6 million, despite a net loss growing from $129.2 million to $314.6 million. The loss reflects IPO-related costs, while adjusted operating income showed profitability, increasing from $25 million to $162.6 million.
Comparative Potential
As the AI leader, Nvidia is pivotal in supplying the hardware necessary for AI development. However, its growth potential is becoming limited, reflected in its $3.3 trillion market cap. In contrast, CoreWeave’s growth potential remains largely unexplored and difficult to estimate.
As Nvidia’s earnings report boosts confidence in AI infrastructure demand, investors see potential in both companies. Given CoreWeave’s rapid growth since its IPO, it may be a strategic investment alongside Nvidia as AI demand continues.
Investment Considerations for CoreWeave
Before investing in CoreWeave stock, be aware that it wasn’t included in a recent list of top stock picks. While CoreWeave has substantial potential, evaluation of its long-term profitability remains ongoing.
Investors should analyze Nvidia’s performance and its impact on related companies such as CoreWeave in a changing AI landscape.
Jeremy Bowman has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
