We see limited prospects here

Article Excerpt

You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration: COREWEAVE INC., $40.78, (Nasdaq symbol CRWV; TSI Rating: Extra Risk) (Shares outstanding: 346.0 million; Market cap: $4.8 billion; No dividends paid) rents out AI servers. This recent IPO first sold shares to the public and began trading on Nasdaq at $40 on March 31, 2025. The company operates a network of 32 datacentres that house the chips and equipment the company rents out to clients; they, in turn, use them tocreate and deploy their AI systems. The company is very integrated with Nvidia (symbol NVDA on Nasdaq). It rents out Nvidia GPUs (specialized processing units), such as the H100, H200, or GB200, to other tech businesses. Notably, Nvidia owned nearly 6% of CoreWeave before its IPO. Post-IPO, it owns approximately 1.21%. CoreWeave could face a big challenge as the current supply…