Jim Cramer on CoreWeave: "I'd Rather Have You Buy NVIDIA"

CoreWeave, Inc. (NASDAQ:

) is one of the . A caller asked if CRWV is a stock to avoid or if the recent decline presents a buying opportunity. Here’s what Cramer had to say:

Man, you are going into the lion’s den. I don’t particularly like going into the lion’s den. I’d rather have you buy NVIDIA. I think NVIDIA’s had a lot of good things happen in the last 72 hours. No one’s paying any attention to them except pour moi. That’s French.

Photo by Adam Nowakowski on Unsplash

CoreWeave, Inc. (NASDAQ:CRWV) runs a cloud platform designed to power and scale GenAI workloads with high-performance compute, storage, networking, and managed services. Cramer highlighted NVIDIA’s investment in the company during the January 26 episode, as he stated:

… NVIDIA announced that it invested another $2 billion in CoreWeave, buying 22.9 million shares at $87.20 per share. It was a fantastic verification for CoreWeave, demonstrating that it’s the preferred provider of NVIDIA chips. These are hard to procure. If you’re a big hyperscaler, you’re going to get a serious allocation. If you’re not, though, you know who to go to now. You can set up with NVIDIA by getting it through CoreWeave. This morning on Squawk on the Street, we got to interview CoreWeave founder and CEO, Michael Intrator, as well as Jensen Huang himself, coming from China to talk to us about the deal…

David (co-anchor David Faber) then asked the question on many minds of many skeptics, which is, isn’t this deal just one more example of vendor financing? NVIDIA gives CoreWeave $2 billion. Then CoreWeave turns around and buys product from NVIDIA… Would Michael Intrator take the money and spend it right back as part of a lazy Susan deal? You know what? I think that’s preposterous. That would presume that Jensen’s trying to make his quarter by spending money to get business. He has more business than he knows what to do with. That would presume that Intrator needs the cash, or he couldn’t buy the chips. But Intrator’s had no problem financing his purchases. Not only that, but CoreWeave has been selling its old chips for more than they paid for them because the market’s so tight. Many thought that the chips would be worthless after five years of depreciation. That was totally wrong. So why did NVIDIA do the deal? I think it wants to show the marketplace that CoreWeave is a great partner.

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