CoreWeave (CRWV)'s CEO is Going to Turn Out to be Right, Says Jim Cramer

We recently published 12 Stocks on Jim Cramer’s Radar.  CoreWeave, Inc. (NASDAQ:CRWV) is one of the stocks aon Jim Cramer's radar.

CoreWeave, Inc. (NASDAQ:CRWV) is one of the most important players in the AI industry since it provides computing infrastructure to AI software firms. The shares are up by 61% since their IPO in March, but have dipped by 14% over the last month. On December 16th, The Wall Street Journal reported that CoreWeave, Inc. (NASDAQ:CRWV)’s massive 260-megawatt data center in Texas was facing construction delays due to adverse weather conditions.

Since October start, CoreWeave, Inc. (NASDAQ:CRWV)’s shares have dipped by more than 50% and during this time, multiple analysts have adjusted their ratings. For instance, BofA lowered its share price target to $140 from $168 and kept a Neutral rating on November 11th as it noted the firm’s reduced fiscal year outlook but added that CoreWeave, Inc. (NASDAQ:CRWV) had a strong backlog. Similarly, Jefferies cut the share price target to $155 from $180 on the same day due to a lower 2025 capex guidance.

Cramer believes that CoreWeave, Inc. (NASDAQ:CRWV) might be facing troubles due to a lack of sufficient talent in the construction sector. “I just think that, one of the problems I think that Michael [Intrator] would tell you is, there’s a mismatch. Like we don’t have the people who can do those jobs,” he said. The CNBC TV host added that “it worries me, because there’s no change in that.” However, even though he’s worried, Cramer believes that CoreWeave, Inc. (NASDAQ:CRWV)’s business model of deploying as much capacity as possible and renting it can work in the long term, as he commented, “I think Intrator’s got a model, and the model was to put up as much as you could and then you rent. And he’s going to turn out to be right.”

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.