Should You Invest in the CoreWeave IPO? History Offers a Clear Answer.
CoreWeave's IPO could set the stage for the next chapter of the artificial intelligence (AI) revolution.
During the last two years, artificial intelligence (AI) has emerged as a generational megatrend rarely witnessed in the capital markets. While the S&P 500 posted total returns of 26% and 25% during 2023 and 2024, respectively, a closer analysis of these trends shows that investors have largely flocked to a small cohort of megacap stocks over the last couple of years.
The collective performance of the "Magnificent Seven" -- Nvidia, Microsoft, Alphabet, Amazon, Meta Platforms, Apple, and Tesla -- has played an outsize role in fueling the market to new highs.
However, this year has gotten off to a rough start for the Magnificent Seven, with each member except Meta posting a negative return year to date as of this writing.
