Jim Cramer on CoreWeave (CRWV): “I Think It’s Going to Be Okay to Buy”

On September 16, CNBC's Mad Money host Jim Cramer responded to a caller's question about whether CoreWeave, Inc. (NASDAQ:CRWV) would break out soon. Cramer explained that CoreWeave is facing a "yin and yang" situation, as it is borrowing a lot of money, which could become more challenging if the Federal Reserve starts raising interest rates.

However, the company is in the midst of a significant industrial buildout. Cramer believes it is "okay to buy" CoreWeave, but acknowledges that it has become more speculative due to rising interest rates. CoreWeave sits at the center of the artificial intelligence infrastructure boom, with revenue growth of 112% year-over-year in the second quarter, reaching $2.58 billion.

The company also has a substantial revenue backlog of $104 billion as of June 30, giving it multi-year visibility. However, CoreWeave's heavy financial commitments, including $35.6 billion in total indebtedness and an estimated $51.6 billion in total debt when lease liabilities are included, introduce significant risks during a tightening monetary cycle.

Despite this, CoreWeave has seen increased interest from investors, with 71 hedge funds holding a stake in the company during the second quarter, up from 63 in the previous quarter.