Considering Investing in the CoreWeave IPO? Here's a Different Nvidia-Backed Data Center Stock You Might Want to Check Out Instead.
CoreWeave's long-awaited IPO is right around the corner.
So far this year, the Nasdaq Composite dropped by about 8%. Broad sell-offs in mega-cap artificial intelligence (AI) stocks are some of the biggest drags on the market.
Despite these murky conditions, one AI unicorn has its eyes set on an initial public offering (IPO). CoreWeave, a start-up backed by Nvidia, recently filed its S-1, showing the company and current shareholders are marketing the shares from $47 to $55. With 48.7 million shares in potentially in play, the IPO is valued at roughly $2.7 billion.
While CoreWeave's public debut has been highly anticipated, I'm wary about investing in the company right now. Let's explore CoreWeave's business, the current state of the company's financial profile, and why a different Nvidia-backed AI data center stock may be the better buy.
