CoreWeave’s stock has surged more than threefold since its IPO in March, driven by impressive growth in AI-focused cloud services. Unlike broader cloud platforms, CoreWeave specializes in cloud-based GPUs to handle machine learning and AI workloads.
Originally a crypto mining company, it shifted focus in 2018 and has since expanded its GPU data centers from 3 to 33 locations, deploying over 250,000 Nvidia GPUs.
This scale enables CoreWeave to process AI tasks up to 35 times faster and 80% cheaper than larger cloud providers. Its revenue skyrocketed from $16 million in 2022 to $1.9 billion in 2024, with expectations to reach $5 billion this year and analysts forecasting $11.7 billion by 2026 and $16.5 billion by 2027.
Despite this explosive growth, CoreWeave remains unprofitable and carries significant debt from rapid expansion. Its stock trades at 14 times this year’s sales, reflecting high expectations that may be difficult to meet amid increasing competition.
Snowflake’s Steady Growth and Strong Position
Snowflake offers a cloud-based data warehouse that centralizes data from multiple platforms, helping companies break down data silos and improve decision-making. Unlike AWS and Microsoft Azure’s integrated warehouses, Snowflake operates independently across various cloud services, providing flexibility and usage-based pricing.
Snowflake benefits from AI growth as companies increase their data needs. Its AI tools—such as Cortex for large language models, Snowpark for machine learning, Copilot for conversational queries, and Document AI—are expected to drive future growth.
Since going public in 2020, Snowflake has seen strong revenue growth: product revenue more than doubled in 2021 and 2022, then grew 70% in 2023, 38% in 2024, and 30% in 2025.
Customer count rose from 4,139 in 2021 to 11,159 in 2025, though revenue retention per customer declined from 168% to 126%. Analysts project a 24% compound annual growth rate (CAGR) through 2028.
Snowflake is not yet profitable and trades at 15 times this year’s sales, slightly higher than CoreWeave.
Why Snowflake Could Outpace CoreWeave
If Snowflake meets analyst forecasts and maintains a 15x forward sales ratio, its market value could rise from $70 billion today to $103 billion by early 2027 and $128 billion by early 2028.
CoreWeave’s market cap could quadruple to $301 billion by 2027 if it sustains a 106% CAGR and trades at 14x sales. However, if growth slows to 30% CAGR, its market cap might only increase 6% to $76 billion, falling behind Snowflake.
CoreWeave’s high valuation already reflects very optimistic growth. Failure to meet these expectations could give Snowflake, with its more stable business model and realistic forecasts, the edge.
Should You Invest in Snowflake Today?
While Snowflake shows strong potential, it was not included in The Motley Fool Stock Advisor’s top 10 recommended stocks. Investors should weigh Snowflake’s growth prospects against other promising opportunities.
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