AI-focused cloud computing company CoreWeave (NASDAQ:CRWV) received a fresh analyst update from Citizens, who reiterated its Market Outperform rating on the stock with a price target of $180.00.
The research firm characterized CRWV as a leading GPU-as-a-Service (GPUaaS) provider poised to benefit from the rising demand for AI infrastructure. This is underpinned by multi-year contracts and a revenue backlog exceeding $56 billion.
The firm believes CoreWeave is likely to continue capturing large-scale contracts as the GPUaaS total addressable market expands, fueled by accelerated adoption of generative AI and increased outsourcing by hyperscalers.
It added that potential pricing pressure, customer concentration issues, and leverage concerns are some of the several risks facing the company.
CoreWeave’s (CRWV) AI Boom Story Now Competes With Securities Lawsuit
In other news, Leading securities law firm Bleichmar Fonti & Auld LLP said that a class action lawsuit has been filed against CoreWeave, Inc. (NASDAQ:CRWV) and certain senior executives, alleging securities fraud after significant stock drops resulting from the potential violations of the federal securities laws.
The cloud computing company has been working with multiple partners, including Core Scientific, with which a merger agreement was announced on July 7, 2025.
During this period, CRWV assured investors that it is well-positioned to benefit from strong demand and boasted the ability to deploy AI infrastructure at scale. However, the company overstated its capacity to meet this demand and also failed to disclose major data center construction delays.
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
While we acknowledge the potential of CRWV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
We recently published 11 Stocks on Jim Cramer’s Radar. NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently discussed.
NVIDIA Corporation (NASDAQ:NVDA)’s AI GPUs rule the AI industry. In this appearance, Cramer discussed the orders for these chips. The orders are crucial for NVIDIA Corporation (NASDAQ:NVDA)’s valuation, and the CNBC TV host believes that there is more than enough demand for the chips:
NVIDIA (NVDA) Has The AI Orders, Says Jim Cramer
“I do think that they have the orders, so does Jensen, Jensen Huang has the orders. You need the orders in order to be able to get to where we’re gonna go here. It’s just that we need the orders to be paid for. . .I know that Jensen Huang has a list of clients who’re willing to pay for anything, anything that was meant for China. And I think, I think you own NVIDIA, don’t trade it.”
While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks Analysts are Tracking Closely. On October 28, Baird reiterated the stock as “Outperform” and raised its price target to $280 per share from $230. The firm said it’s bullish ahead of Apple earnings on Thursday.
The firm has updated its model, citing tailwinds from its upgrade cycle.
“Expect solid FQ4 results/guidance. It’s still early in the iPhone 17 cycle, but early indicators appear to be directionally supportive, including solid upgrade rates posted by AT & T/T-Mobile last week. However, the bigger focus is likely to be the December-quarter outlook, and we’d note that current estimates look potentially conservative based on historical sequential seasonality”
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
Apple is a technology company known for its consumer electronics, software, and services.
While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
Ben Reitzes, Melius Research’s head of technology research, said in a recent program on CNBC that while he likes Intel’s leadership, he cannot recommend the stock. Here is what the analyst said:
“Lip-Bu Tan—we’re big fans. We’ve known him before, and he’s somebody people like and people want to work with. Give him a chance. There’s some speculation around him even working with AMD because we know he’s tight with Lisa Su, who’s a great CEO in her own right. Intel Corp (NASDAQ:INTC)—we’re watching. We’ve seen this surge here. It might take a rest for a little while because I don’t think the numbers are there near term. But with the backing of the US government, which I think was a really nice move by the Trump administration, you can’t count them out. You can’t count them out, but they really don’t have an AI strategy that’s as visible as the others that we recommend.”
Ben Reitzes said he’s recommending Nvidia, Broadcom and AMD.
While we acknowledge the potential of INTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
Stacy Rasgon, Bernstein senior semiconductor analyst, was recently asked about the NVIDIA Corp (NASDAQ:NVDA)-OpenAI $100 billion deal and what it indicates. The analyst said the deal shows there is a “shortage” of computing power and customers are lining up in advance.
“I mean, one of the primary overarching themes seems to be a shortage of compute. Everybody out there who’s involved in this seems to still be scrambling for compute. And so I do think that is part of this, and you know, Jensen’s thrown out some big numbers for what he thought infrastructure spending would be by the end of the decade. I think he said three to four trillion — like, who knows, I don’t know how big — but I do think that it’s big. So you have that. I think the power question is very interesting. I think customers are lining up power in front of these kinds of investments years in advance because the power infrastructure as it sits isn’t there; that has to be put in front. People have really thought about whether or not power might actually be the primary constraint as we ramp all this up over time. It may not even be compute. Over time, I mean.”
The current AI boom cycle stems from spending by major tech companies, and Nvidia is the biggest beneficiary of this spending. In Q2 FY2026, three direct customers accounted for 23%, 19%, and 14% of NVDA’s accounts receivable. Almost all of the company’s revenue comes from AI-related infrastructure spending. In the latest quarter, $41.3 billion of the $46.7 billion revenue came from these clients. The music could stop for Nvidia if these major companies decide to slow down their spending amid a lack of ROI. If investors sense a weakness in CapEx spending, and the market begins to waver, NVDA stock price would be the first to see its impact.
Baird Chautauqua International and Global Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) reported first quarter results that were extremely solid. The company took a write-down on China-specific datacenter products and flushed out any future China contributions from their guidance, following the new export restrictions introduced in April. Demand commentary ex China was extremely encouraging—Nvidia is outgrowing expectations despite supply constraints and outgrowing competing ASIC products by a large margin. We have been underweight Nvidia relative to the benchmark, which was up 46% in the quarter, given our short-to medium-term concerns that the feverish AI datacenter build may be resulting in overcapacity, which has not come to bear.”
Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Premier Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was a standout period for US equities, led by optimism over the Federal Reserve’s dovish pivot and the ongoing boom in artificial intelligence (AI). The S&P 500® Index and the Nasdaq Composite surged, representing technology’s relentless momentum. In the quarter, the strategy returned +6.41% net of fees, compared to +8.00% and +8.12% returns for the Russell 1000 Index and the S&P 500 Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Mar Vista U.S. Quality Premier Strategy highlighted stocks such as Moody’s Corporation (NYSE:MCO). Moody’s Corporation (NYSE:MCO) is a leading integrated risk assessment firm. The one-month return of Moody’s Corporation (NYSE:MCO) was -3.16%, and its shares gained 3.60% of their value over the last 52 weeks. On October 8, 2025, Moody’s Corporation (NYSE:MCO) stock closed at $490.09 per share, with a market capitalization of $87.902 billion.
Mar Vista U.S. Quality Premier Strategy stated the following regarding Moody’s Corporation (NYSE:MCO) in its third quarter 2025 investor letter:
“Moody’s Corporation (NYSE:MCO) stock declined for the quarter on concerns of a growing AI arms race among competitors. In mid-September, FactSet reported slowing growth and commented that increasing competitive dynamics from start-ups, new competitors, and traditional competitors may pressure margins. Moody’s Analytics segment has been early and aggressive in rolling out agentic artificial intelligence models. Their strategy aims to expand the company’s ecosystem where customers can leverage Moody’s data, analytics, and AI tools within their own workflows. We expect Moody’s AI investments will further imbed its services into the operations of banks, insurance companies, and asset managers, further expanding the company’s economic moat.”
Is Moody’s Corporation (MCO) The Best Financial Sector Dividend Stock To Buy Right Now?
Moody’s Corporation (NYSE:MCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 82 hedge fund portfolios held Moody’s Corporation (NYSE:MCO) at the end of the second quarter, the same as in the previous quarter. While we acknowledge the potential of Moody’s Corporation (NYSE:MCO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
History is proof the U.S. stock market always climbs to new highs given enough time. But the stocks that lead the charge higher aren’t always the same. To help find the new leaders, Wall Street often groups them together to separate them from the rest of the market. For example, CNBC financial analyst Jim Cramer coined the FAANG acronym in 2017 to describe five of the largest technology companies at the time:
Facebook, which now trades as Meta Platforms
Apple
Amazon
Netflix
Google, which now trades as Alphabet
That leadership shifted in 2023 when a group of seven stocks drove the S&P 500 index to an annual return of twice its historical average. Bank of America analyst Michael Hartnett dubbed those stocks the “Magnificent Seven,” and they include:
Meta Platforms
Apple
Amazon
Alphabet
Microsoft
Nvidia (NASDAQ: NVDA)
Tesla
Image source: Getty Images.
It’s time for the “AI Five,” according to one analyst
With Tesla stock sinking 22% so far this year, Jim Cramer thinks it should be booted from the Magnificent Seven entirely. The company is facing sluggish electric vehicle sales in 2024, which could keep a lid on its stock price and weaken the power of the Magnificent Seven as a group.
It prompted one analyst — Glen Kacher from Light Street Capital — to rethink the stock market’s leadership altogether. He thinks investors should be focused on artificial intelligence (AI), so he has identified a new group of stocks and called it the “AI Five.” It includes:
Nvidia
Microsoft
Taiwan Semiconductor Manufacturing
Advanced Micro Devices(NASDAQ: AMD)
Broadcom (NASDAQ: AVGO)
Each company has a hand in developing the hardware and software necessary to bring AI to life. Here are two AI Five stocks investors should consider buying right now.
1. Advanced Micro Devices (AMD)
Advanced Micro Devices might be one of the best semiconductor stocks to own in 2024. Its new MI300 data center chips are designed to process AI workloads, and they are shaping up to be the main rivals to Nvidia’s industry-leading H100.
The MI300 comes in two configurations. The MI300X is a pure graphics processor (GPU) like the H100, whereas the MI300A combines GPU and central processing unit (CPU) hardware to create the world’s first accelerated processing unit (APU) for data centers. The MI300A will power the El Capitan supercomputer at the Lawrence Livermore National Laboratory, and it’s expected to be the most powerful in the world when it comes online later this year.
Some of the world’s largest data center operators, companies like Meta Platforms, Microsoft, and Oracle, are also racing to get their hands on MI300 chips. They have relied almost entirely on Nvidia up until now, but supply constraints are pushing them to look for viable alternatives, and AMD is ready.
In the fourth quarter of 2023, AMD issued a bullish forecast for the MI300. The company originally expected the GPU to pull in $2 billion worth of sales in 2024, but it raised that number to $3.5 billion, much to the delight of investors.
AI is also coming to personal computers, where users can process AI on-device for a faster experience, which reduces the reliance on external data centers. AMD’s Ryzen AI series of neural processing units (NPUs) already power more than 50 notebook designs, and the company is working with Microsoft to develop a new version of Windows that will run AI workloads more efficiently.
Millions of personal computers have already shipped with Ryzen AI chips, giving AMD a 90% market share in the segment. Ryzen AI drove the company’s Client segment revenue to $1.5 billion in the fourth quarter, representing a whopping 62% year-over-year increase. AMD expects that momentum to continue, especially because it’s preparing to launch a next-generation chip that could be more than three times faster.
Simply put, 2024 is set to be incredibly exciting for AMD, and the company could be on the cusp of a multiyear growth cycle on the back of its new hardware slate.
2. Broadcom
As far as being an AI stock, Broadcom lives in the shadow of glamorous names like AMD and Nvidia. However, Broadcom is developing AI on multiple fronts, and its stock has delivered a 343% return over the last five years, so it definitely warrants some attention. Despite being founded in 1991, the company really took a leap forward when it merged with semiconductor giant Avago Technologies in 2016.
Broadcom is now a conglomerate that not only includes Avago but also several acquired companies like semiconductor device supplier CA Technologies, cybersecurity giant Symantec, and cloud software developer VMware. Broadcom spent a whopping $98.6 billion on those three acquisitions since 2018.
VMware, which had a price tag of $69 billion alone, is an increasingly important company in the context of the AI boom. Its software allows users to run virtual machines to distribute cloud infrastructure more efficiently. For example, one user on one server might only utilize 10% of its capacity, but virtual machines allow multiple users to plug into that server so it operates at capacity. Considering so many companies are racing to access AI data center infrastructure, optimization is one way they can squeeze the most value out of what they have.
Broadcom itself is also considered a leader in networking and server connectivity solutions for the data center. It developed a high-bandwidth switch called Tomahawk 5, which is designed to accelerate AI and machine learning workloads. A switch regulates how fast data travels from one point to another, and considering developers are feeding billions of data points to powerful GPUs to train AI models, it has become an important piece of the infrastructure puzzle.
Broadcom generated a record-high $35.8 billion in revenue during fiscal 2023 (ended Oct. 29), which was an increase of 8% compared to fiscal 2022. However, Broadcom’s revenue is expected to grow by 40% in fiscal 2024 to $50 billion, thanks to the inclusion of VMware’s financial results for the first time.
Based on Broadcom’s $42.25 in non-GAAP (adjusted) earnings per share in fiscal 2023 and its current stock price of $1,226.55, it trades at a price-to-earnings (P/E) ratio of 29.1. That’s a 9% discount to the 32.1 P/E of the Nasdaq-100 index, which implies Broadcom is still cheap relative to its peers in the tech sector.
Given the company’s growing presence in AI through acquisitions and in-house development, Broadcom looks like a great AI Five stock to buy now and hold — especially at this price.
Where to invest $1,000 right now
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They just revealed what they believe are the 10 best stocks for investors to buy right now… and Advanced Micro Devices made the list — but there are 9 other stocks you may be overlooking.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Bank of America, Meta Platforms, Microsoft, Netflix, Nvidia, Oracle, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Broadcom 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.
Warren Buffett and Cathie Wood are like two peas in a pod. At least, that’s the case if the pod spanned millions of miles and the two famous investors were on polar ends of it.
The reality is that Buffett and Wood don’t see eye-to-eye on many stocks. However, there’s one notable exception. Here’s the only artificial intelligence (AI) stock that both Buffett and Wood own as 2024 begins.
Small positions for both famous investors
Wood’s Ark Invest portfolio is chock-full of AI stocks. That’s not surprising, considering that Wood has been a vocal proponent of AI for years. It’s a different story with Buffett. The legendary investor is well-known for focusing only on stocks that are in his circle of competence. AI definitely doesn’t fit the bill.
But there is one — and only one — AI stock that both investors own. Admittedly, though, their stakes in this stock are fairly small.
Amazon(NASDAQ: AMZN) makes up 0.4% of Buffett’s Berkshire Hathaway portfolio. While Berkshire initiated a position in Amazon in 2019, Buffett acknowledged at the time that the decision was made by one of the conglomerate’s two investment managers. Still, he likes the company and the stock, telling CNBC, “Yeah, I’ve been a fan, and I’ve been an idiot for not buying.”
Wood’s position in Amazon is even smaller. And the stock isn’t in any of her exchanged-traded funds (ETFs) that focus heavily on AI. Instead, Amazon is included in the Ark Space Exploration & Innovation ETF. The company’s Project Kuiper satellite broadband network apparently caught Wood’s attention.
Amazon’s AI story
Amazon isn’t a johnny-come-lately to the world of AI. The company has developed and used AI for more than two decades.
AI permeates the algorithms used on Amazon’s e-commerce platform. Every time a user sees a recommendation for a product to buy, it’s an example of the company’s AI at work. The e-commerce giant recently upped its game on this front, launching a generative AI tool to answer shoppers’ questions about products.
Amazon introduced its Alexa virtual assistant way back in 2014. Alexa is embedded in the company’s Echo, Firestick, and Kindle Fire devices.
The bigger AI opportunity for Amazon, though, is with its cloud services platform, Amazon Web Services (AWS). CEO Andy Jassy underscored why AWS could be such a big winner in AI in his comments during the company’s third-quarter earnings call. He stated, “[C]ustomers want to bring the [AI] models to their data, not the other way around. And much of the data resides in AWS as the clear market segment leader in cloud infrastructure.”
Is Amazon a smart pick for less well-known investors?
Buffett’s Berkshire Hathaway trimmed its position a little in Amazon in the third quarter of 2023. Wood’s Ark Invest released a report several months ago that downplayed mega-cap AI stocks such as Amazon in favor of smaller up-and-comers. However, I think that there are several reasons to buy Amazon stock right now.
The company’s bottom line continues to improve significantly. Amazon’s management has focused intently on boosting profits by streamlining operations across the board. Those efforts are bearing fruit, as evidenced by earnings more than tripling year over year in 2023 Q3.
Jassy has said in the past that roughly 90% to 95% of global IT spending is still on-premises with the rest in the cloud. He believes those numbers will flip over the next 10 to 15 years. I suspect he’s right. If so, AWS should have massive growth prospects ahead.
Last, but not least, Amazon hasn’t stopped looking for ways to expand into new markets. Just last year, the company launched a supply chain management service, introduced a primary care service for Prime members, and announced that it will sell cars online. I expect more expansions in the future.
My view is that Buffett and Wood would be wise to add to their stakes in Amazon. And I think the AI stock is a smart pick for less well-known investors, too.
Should you invest $1,000 in Amazon right now?
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Amazon and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon and Berkshire Hathaway. The Motley Fool has a disclosure policy.
