CoreWeave vs. Oracle: The Better AI Stock for 2025

The demand for cloud computing infrastructure used to train and deploy artificial intelligence (AI) models is surging. This has led to significant gains for both CoreWeave and Oracle, making them top contenders in the AI stock market.

Both companies offer AI-focused data centers equipped with premium GPUs from Nvidia, AMD, and others. The cloud infrastructure market is projected to grow from $178 billion in 2023 to over $1.1 trillion by 2033, with AI playing a pivotal role in this expansion. Oracle and CoreWeave aim to capitalize on this massive opportunity.

The Case for Oracle

Oracle's stock has risen 50% over the past 12 months, driven by a 41% year-over-year increase in remaining performance obligations (RPO) to $138 billion. RPO represents the total value of unfulfilled contracts, indicating a robust revenue pipeline. Oracle expects its revenue growth rate to nearly double in fiscal 2026, with the Oracle Cloud Infrastructure (OCI) segment leading the charge.

Oracle's management is optimistic about the company's future, noting that the $500 billion Stargate AI infrastructure project may not yet be fully reflected in its revenue pipeline. The company plans to invest $25 billion in capital expenditure this fiscal year to meet the growing demand for AI cloud infrastructure.

The Case for CoreWeave

CoreWeave, which went public in March 2025, has delivered impressive gains of over 300% to investors in its short public life. The company reported a 420% year-over-year increase in revenue to $981 million in Q1. CoreWeave's revenue backlog has grown by 63% to nearly $26 billion, outpacing Oracle's RPO growth.

Major tech giants like OpenAI and IBM are leveraging CoreWeave's infrastructure for AI model training and inference applications. OpenAI signed a $11.2 billion deal with CoreWeave last quarter, and an existing customer extended its contract by $4 billion. CoreWeave is investing heavily in expanding its data center capacity, forecasting $20 to $23 billion in capital expenditure this year.

CoreWeave's addressable market is expected to reach $400 billion by 2028, indicating strong growth potential. The company forecasts $5 billion in revenue for the current year, a significant increase from last year's $1.9 billion. With plans to increase data center power capacity by almost 4x, CoreWeave is well-positioned to meet the growing demand for AI cloud infrastructure.

The Verdict

While both companies are on track for healthy growth, CoreWeave's growth is expected to outpace Oracle's significantly. However, CoreWeave's stock is more expensive, trading at just under 30 times sales, compared to Oracle's price-to-sales ratio. CoreWeave is not yet profitable due to its substantial investments in AI infrastructure, but analysts expect it to turn a profit in the next couple of years.

Oracle, trading at 30 times forward earnings, offers a more affordable entry point with steady growth potential. Its earnings are expected to increase at a faster pace of 21% in the next fiscal year, following a 12% jump in the current one.

Investors looking for a more affordable AI stock with steady growth can consider Oracle. Those seeking potentially higher gains and willing to pay a premium might be interested in CoreWeave, given its impressive growth trajectory.