$CoreWeave, Inc.(CRWV)$ $NAVITAS PETE LTD.(NVPTF)$
May has been a wild ride for CoreWeave and Navitas Semiconductor, two stocks that have blasted off with gains exceeding 150%. Fueled by the AI frenzy and their ties to Nvidia, these companies have captured Wall Street’s imagination. But yesterday, the momentum hit a snag—both stocks pulled back after news of Nvidia CEO Jensen Huang offloading shares. After such a record-breaking surge, are we staring at a correction, or is this just a pit stop before the next leg up? Let’s break it down and figure out whether to hold tight, cash out, or even bet against the hype.
The Rocket Fuel Behind the Rally
These aren’t your average stocks—they’re players in the AI and semiconductor gold rush, and their May performance proves it.
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CoreWeave: A cloud computing powerhouse, CoreWeave delivers GPU-driven infrastructure tailored for AI workloads. With Nvidia as a key investor and partner, the company’s stock has been on a tear since its IPO earlier this year. Its revenue has exploded, thanks to booming demand for AI computing power, positioning it as a critical cog in the tech ecosystem.
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Navitas Semiconductor: Specializing in next-gen gallium nitride (GaN) and silicon carbide (SiC) chips, Navitas powers the efficient systems that AI data centers crave. A blockbuster partnership with Nvidia catapulted its stock into the stratosphere, with one session alone delivering triple-digit gains.
The AI hype train has been running full throttle, and these two have been riding shotgun. But can they sustain the altitude?
Jensen’s Move: Storm Clouds or False Alarm?
Yesterday’s retracement coincided with news of Jensen Huang selling Nvidia shares. When a titan like Nvidia makes waves, the ripples hit related stocks hard. But what’s the real story here?
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The Bearish Take: Insider sales can signal doubt. If Huang’s cashing out, some investors might wonder if Nvidia—and by extension, its ecosystem partners—are nearing a peak.
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The Bullish Spin: CEOs sell stock all the time—tax strategies, diversification, you name it. This could be a planned move, not a distress signal. Nvidia’s still the king of AI chips, and its partners aren’t going anywhere.
The market didn’t wait for clarity, though—CoreWeave and Navitas dipped, hinting at fragile sentiment. Is this a healthy breather or the beginning of the end?
By the Numbers: Where They Stand Today
Let’s zoom in on the stats to see if these stocks are still worth the hype. Here’s a table comparing their key metrics:
| Stock | Price | May Return | P/E Ratio | Revenue (TTM) | Market Cap |
|--------------------|----------|------------|--------------|---------------|------------|
| CoreWeave (CRWV) | $82.50 | +155% | N/A (loss) | $1.9B | $24B |
| Navitas (NVTS) | $5.10 | +162% | N/A (loss) | $83M | $900M |
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CoreWeave: Trading at $82.50, it’s sitting on a $24 billion valuation. Revenue is soaring, but profitability remains elusive, with hefty investments eating into margins.
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Navitas: At $5.10, it’s a smaller fish with a $900 million market cap. Its Nvidia deal is a lifeline, but its tiny revenue base means it’s banking on future growth.
Both are priced for perfection, but perfection’s hard to come by. Overbought signals are flashing—CoreWeave’s RSI is hovering near 80, and Navitas is pushing 85. Historically, that’s correction territory.
Long or Short: The Playbook
So, where do you put your money—or do you pull it out entirely? Here’s the breakdown.
Why Go Long?
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AI’s Still King: The demand for AI infrastructure isn’t slowing down. CoreWeave’s cloud dominance and Navitas’ chip tech are locked into a megatrend.
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Support Levels: CoreWeave could find a floor around $75, while Navitas might stabilize near $4.50. Dips could be buying zones.
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Nvidia’s Shadow: As long as Nvidia thrives, its partners get a halo effect. One sale doesn’t undo that.
Why Go Short?
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Bubble Vibes: A 150%+ run in a month screams overextension. Profit-taking could snowball.
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Jensen Jitters: If Nvidia stumbles—say, on earnings—CoreWeave and Navitas could take a bigger hit.
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Reality Check: Neither company’s profitable yet. If growth slows, those sky-high valuations will crack.
The Bottom Line: Play It Smart
CoreWeave and Navitas have been May’s rockstars, but yesterday’s dip is a wake-up call. The AI boom is real, and these companies are in the thick of it—but after a 150% sprint, a cooldown isn’t surprising. If you’re in, consider trimming your position to lock in gains. If you’re out, wait for a better entry—$75 for CoreWeave or $4.50 for Navitas could be sweet spots. Shorting? Only if you’ve got nerves of steel; this rally’s got legs, even if they’re wobbly.
The party’s not over, but the bar’s getting crowded. Pick your moves wisely.
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