CNBC’s Jim Cramer said Wednesday that he’s become less of a skeptic. coreweave Following neocloud’s strong earnings and CEO’s “refreshing and encouraging” comments.
Coreweave shares rose nearly 25% on Wednesday after the company reported better-than-expected quarterly sales and raised its 2026 outlook. The results, released Tuesday night, helped ease concerns about a slowdown in AI infrastructure spending. CoreWeave CEO Michael Intrator’s interview with Cramer on CNBC shortly after Wall Street’s opening bell provided further reason for optimism.
One of the most encouraging takeaways from Intrator was the disclosure that CoreWeave’s demand for computing power was 10 times greater than the company could supply. This was also discussed during the post-earnings conference call. This dynamic has allowed CoreWeave to consistently raise prices and has supported improved gross margins even as it spends heavily on expanding its infrastructure.
Mr. Intrater also cited concerns about the high amount of debt weighing on Coreweave’s stock price. Despite Wednesday’s surge, the stock is still down 15% year-to-date and 55% from its May 6 52-week high of $138. The past month has been particularly turbulent for Neocloud. Airen and Nevius. Airen reported strong earnings last week. Nebius will report the quarter on Thursday morning.
CoreWeave is increasingly turning to financing backed by equipment and customer contracts, rather than relying solely on traditional debt markets. “When I asked him why he didn’t go into the open market and buy bonds that were trading very badly, he admitted that he was tempted to do that, but he still believes that ultimately he could get a better return by building a data center,” Cramer said. “Take that red flag off the table.”
Another surprising discovery was regarding the value of CoreWeave. Nvidia Chips. Intrater said some H100 chips purchased four years ago are now being contracted at premiums between 20% and 50% above their original price, suggesting the equipment is retaining its economic value longer than many investors expected.
Intrator’s interview also helped allay concerns about growing political opposition to data center construction. The CEO argued that demand for computing power will continue to drive expansion, even as tighter regulations push some projects overseas.
For Kramer, the comments were a welcome counterpoint to the recent pessimism surrounding AI infrastructure stocks. He said political and funding risks have made him more cautious about the sector, but he argued that abandoning it completely would mean missing out on significant upside. “While we removed some data center and related stocks from[the CNBC Investment Club]unfortunately we did not remove NVIDIA because, in our calm and prudence, we decided that adding too many data centers was still too risky.However, we left ample exposure to a group that included semiconductors, software, networking, builders, turbines and chillers because we believe there is still room for execution in the AI theme.”
Our club does not own Neocloud. But even though it has declined recently, exposure to the AI boom has diversified through chip stocks and the names of companies that help operate and power data centers.
