CoreWeave, Inc. (CRWV) Is Constrained Due To Power Supply, Says Jim Cramer

We recently published Jim Cramer Said Quantum Computing Could Quench AI’s Thirst For Water As He Discussed These 14 Stocks . CoreWeave, Inc. (NASDAQ:CRWV) is one of the stocks Jim Cramer recently discussed.

CoreWeave, Inc. (NASDAQ:CRWV) is a key player in the AI industry as it hosts and provides computing infrastructure to AI software companies. The shares have gained 132% since their IPO in March but have lost 49% since their peak in June. The day Cramer made these remarks about CoreWeave, Inc. (NASDAQ:CRWV) was key as the stock closed 21% lower. The CNBC TV host commented on the firm in the morning and discussed CoreWeave, Inc. (NASDAQ:CRWV)’s earnings call. His comments about waiting were also prescient, given the major share price dip. However, Cramer believes that electricity constraints are preventing CoreWeave, Inc. (NASDAQ:CRWV) from having a higher backlog:

“But I do think Carl, when we look at what’s happened with CoreWeave, what we have to focus on, is the lockup. The expiration of the lockup. Cause I don’t want people to get in it. That’s the 15th, tomorrow. I don’t want anyone to see it, it’s after the close tomorrow. I just think that if you people want to be in it, you have to wait till things settle down.

“The call was filled with congratulations, and people are very excited about the fact that everybody has to build one of these. David, just for you, I was going over with Michael Intrator, the size of what people have to build. HE’s talking about six San Franciscos. Six San Franciscos. . . .well he felt, well the problem is Mark Zuckerberg was talking about various parts of the map, but didn’t talk about the actual building. Six San Franciscos. . .

“But with CoreWeave you’ve gotta understand. If we go to reasoning, the next generation of NVIDIA, Vera Rubin, from Philadelphia by the way, what you will find is that’s reasoning. And that’s what we need in all this. In order to reason you need much more power.

“I do think that what they did, they’re constrained [in the backlog] by power, you need more power. They could do a much bigger backlog but they don’t have the power.”

While we acknowledge the risk and potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRWV and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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