CoreWeave, Inc. (CRWV)'s Deal With NVIDIA Is "Very Good," Says Jim Cramer

We recently published 9 Stocks on Jim Cramer’s Radar. CoreWeave, Inc. (NASDAQ:CRWV) is one of the stocks Jim Cramer recently discussed.

CoreWeave, Inc. (NASDAQ:CRWV) is a computing infrastructure provider that primarily caters to the needs of the AI industry. Its role in the AI ecosystem means that Cramer frequently mentions it in his coverage. Cramer has repeatedly reminded viewers that he was among the few who were positive on CoreWeave, Inc. (NASDAQ:CRWV) as it listed its shares for public trading earlier this year. Yet, he has also warned viewers about unnaturally high share prices. Earlier this week, CoreWeave, Inc. (NASDAQ:CRWV) announced a new deal with NVIDIA through which the latter would purchase any excess cloud computing capacity. Cramer commented on the development:

“Take a look at CoreWeave, they announced a deal this morning. Boom, nine points. Somebody says, listen, that deal is real. Huge up.

“. . .overlooked deal, CoreWeave with NVIDIA, 6.3 billion, where CoreWeave has the right to interrupt the contract. This is to sell, sell data center. . .it’s very good for CoreWeave, that’s why CoreWeave is up so much.

“They have the right to basically, under the terms, [inaudible] where the company’s data center capacity is not fully utilized, NVIDIA pays. But if it is, and they have a lot of demand, then CoreWeave gets interrupted and sell it itself. It’s a great template.”

While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.