Why Buying 2 Established Tech Leaders Makes More Sense Than Chasing CoreWeave

CoreWeave captured investor attention in 2025 with impressive returns since its IPO launch last March. The AI infrastructure specialist, which supplies computing power to companies like OpenAI, has seen its stock price surge beyond expectations. Yet beneath this growth story lie significant financial headwinds that warrant a closer examination before committing capital.

The Hidden Risks Behind CoreWeave’s Rapid Expansion

The company’s revenue trajectory appears extraordinary on paper. CoreWeave’s trailing-12-month revenue sits at $4.3 billion, with projections climbing to $12 billion this year and $19.2 billion next year. These numbers fuel enthusiasm among growth-focused investors.

However, the company faces a structural challenge: achieving this expansion requires massive ongoing investment. CoreWeave continues accumulating Nvidia GPU chips and constructing new AI data centers, but the financial toll is substantial. The firm has burned through $8 billion in free cash flow over the past twelve months alone. Its accumulated debt has surged to more than $18 billion since July 2024, while share dilution has exceeded 7.3% since the IPO.

This spending pattern creates a vulnerability. Without near-term free cash flow generation, CoreWeave’s dependence on borrowing and equity issuance could eventually weigh on shareholder returns. Investors seeking more sustainable wealth-building opportunities might redirect attention toward established technology platforms with proven business models generating substantial cash.

Why Alphabet Deserves Your Consideration as One of 2 Superior Alternatives

Alphabet presents a compelling contrast. The technology powerhouse has delivered over 13,000% in returns since 2004, demonstrating the power of long-term ownership in transformative companies.

Today, Alphabet operates a diversified empire. Google, YouTube, and Google Cloud collectively generate $385 billion in annual revenue and produce $73 billion in free cash flow. This abundance of cash enables the company to fund ambitious AI initiatives while rewarding shareholders.

Alphabet’s competitive positioning in AI is notably strong. The company leverages data from billions of users across its ecosystem to train proprietary models. Gemini now competes directly with ChatGPT as a credible alternative. Additionally, AI adoption is accelerating Google Cloud’s expansion, as enterprises increasingly depend on cloud infrastructure for AI deployment.

Wall Street analysts project Alphabet will expand earnings by more than 16% annually over the next three to five years. This growth outlook—and the recent AI partnership with Apple—supports the current forward P/E valuation near 29. Despite the company’s $4 trillion market capitalization, long-term upside potential remains substantial.

Microsoft: A Multidecade Winner That Continues Advancing

Microsoft represents another compelling opportunity among 2 leading tech stocks worth considering. Since 1987, the company has generated returns exceeding 193,000%, establishing itself as perhaps the most durable wealth creator in technology.

The firm maintains extraordinary diversification. Annual revenue exceeds $293 billion, supported by $78 billion in annual free cash flow. This cash generation empowers the company to invest in future growth while maintaining financial strength.

Microsoft’s business segments create multiple AI monetization pathways. Its software products—Windows, Microsoft 365, and Dynamics 365—serve billions of users and businesses globally. Azure ranks as the world’s second-largest cloud computing platform, positioning the company perfectly to capitalize on enterprise AI adoption.

Notably, Microsoft owns 27% of OpenAI and maintains a strategic partnership with the company. This stake provides direct exposure to the AI revolution’s most prominent player.

The investment case rests on execution and scale. Analysts forecast annualized earnings growth exceeding 16% across the coming years. At a forward P/E just above 30, Microsoft isn’t trading at a discount, but the valuation appears reasonable given the company’s growth trajectory and competitive advantages. While this stock won’t deliver overnight riches, its multidecade track record of value creation speaks for itself.

The Final Consideration

Comparing these three options reveals a clear distinction. CoreWeave offers explosive growth but carries financial risks tied to capital intensity and cash burn. Alphabet and Microsoft, by contrast, combine meaningful growth opportunities with the financial strength to fund AI investments independently. Both have demonstrated the ability to create generational wealth across multiple market cycles. For investors prioritizing sustainable returns over speculative bets, these 2 proven operators merit serious consideration.