July 2, 2025 – CoreWeave, Inc. (NASDAQ: CRWV), a leading provider of high-performance cloud infrastructure tailored for artificial intelligence (AI) workloads, has captured significant market attention in 2025, with its stock soaring nearly 300% since its March initial public offering (IPO).
The company’s rapid growth, strategic partnerships, and pivotal role in the AI ecosystem have positioned it as a standout performer, though recent commentary from CNBC’s Jim Cramer has sparked debate about whether its rally is partly fueled by a short squeeze.
Founded in 2017, CoreWeave has evolved from a cryptocurrency mining operation into a powerhouse in AI cloud computing.
The company specializes in providing access to Nvidia’s advanced graphics processing units (GPUs), operating over 250,000 GPUs across more than 30 data centers in the U.S. and Europe.
This infrastructure supports compute-intensive workloads such as AI training, rendering, and generative AI applications, serving major clients like Microsoft, Meta, and OpenAI.
In March 2025, CoreWeave secured an $11.9 billion deal with OpenAI, which also became an investor through a $350 million stock purchase, underscoring the company’s critical role in the AI ecosystem.
CoreWeave’s first-quarter revenue in 2025 surged 736% to $1.9 billion, exceeding analyst expectations and highlighting robust demand for its services.
CEO Michael Intrator noted an “acceleration of customer demand” unaffected by economic headwinds, with a backlog equivalent to 26 years of Q1 revenue.
This growth has fueled investor optimism, contributing to a market capitalization of approximately $76.1 billion.
Short Squeeze Speculation and Jim Cramer’s Commentary
On July 1, 2025, Jim Cramer, host of CNBC’s Mad Money, commented on CoreWeave’s stock performance, suggesting it may be experiencing a short squeeze.
With 31% of the company’s 361 million shares (of which only 46 million are free to trade) held short, Cramer noted that limited float could amplify price movements as buyers overwhelm short sellers.
“They think they may have another CoreWeave on their hands… it’s very easy for buyers to annihilate the short sellers who bet against these stocks,” Cramer said.
He also described the stock as “overbought” in response to a caller’s question about its relationship with Nvidia, indicating caution despite his earlier bullishness.
Cramer’s earlier statements in 2025 reflect his enthusiasm for CoreWeave, calling it “one of the most bullish things in my career” and dismissing skepticism about its IPO as an AI bubble.
On May 14, he posted on X, “Phew, you know I liked that Coreweave but even I am blown away by that growth,” and on June 27, he advised investors to consider selling due to the stock’s rapid rise, noting that 32% of shares were sold short at the time.
Valuation Concerns and Market DynamicsDespite its impressive growth, CoreWeave has faced scrutiny over its valuation.
Bank of America analyst Bradley Sills downgraded the stock to “Hold” from “Buy” on June 16, citing that “much of the near-term upside has been priced in.”
However, Sills raised the price target to $185, reflecting optimism about CoreWeave’s role in the AI infrastructure market, projected to reach $206 billion by 2027.
Jefferies analyst Brent Thill also listed CoreWeave among top AI stocks, setting a $180 price target.
The company hit $183 on June 20, and is currently trading at $151.77 at the time of this writing.
The company reported a $314.6 million net loss in Q1 2025, driven by stock-based compensation and infrastructure expansion, raising concerns among some investors.
Additionally, a 12.8% stock price drop in the last week of June was attributed to analyst coverage, Nvidia’s push into AI-as-a-service (AIaaS), and fears that CoreWeave could overpay in its resumed acquisition talks with Core Scientific (NASDAQ: CORZ).
CoreWeave’s prior offer for Core Scientific was rejected in 2024 for undervaluing the company, but the two firms later signed 12-year agreements, including a 200MW infrastructure supply contract.
Related: Reuters Strategist Says Hedge Funds Are At Risk of Short Squeezes From Retail Investors
Risks and Opportunities
CoreWeave’s reliance on Nvidia GPUs, while a strength given Nvidia’s dominance in AI hardware, also poses risks. Nvidia, a financial backer of CoreWeave, is expanding its own AIaaS business, potentially encroaching on CoreWeave’s market.
Investors worry about competitive pressures, especially as Nvidia’s GPUs remain central to CoreWeave’s offerings.
Additionally, the company’s heavy investments in GPU expansion to meet demand could strain finances if growth slows.
However, CoreWeave’s specialized focus on AI workloads sets it apart from broader cloud providers, positioning it as a “go-to” for AI-driven enterprises.
Its partnerships with industry leaders and ability to offer flexible GPU leasing (from hours to long-term contracts) enhance its appeal.
The company’s 340% post-IPO rally, including an 8% jump on June 17 after Sills’ downgrade paradoxically set a new Street-high price target, reflects strong investor confidence.
Posts on X highlight mixed sentiment.
Some users have criticized CoreWeave, alleging financial instability and questioning the sustainability of its growth, claiming institutional investors identified issues during its IPO.
Others, including Cramer, have framed CoreWeave as a “meme stock” driven by retail investor enthusiasm, potentially exacerbating short squeezes.
These perspectives, while inconclusive, underscore the polarized views surrounding CoreWeave’s valuation and future prospects.
CoreWeave’s ascent reflects the broader AI boom, with its infrastructure powering the next generation of AI applications.
While Jim Cramer’s comments on a potential short squeeze highlight short-term market dynamics, the company’s long-term prospects hinge on its ability to sustain growth, manage costs, and navigate competitive pressures.
Investors must weigh its impressive revenue trajectory and strategic partnerships against valuation concerns and external risks.
As CoreWeave continues to shape the AI infrastructure landscape, it remains a stock to watch closely.
But I’m curious to know what you think — leave your thoughts below.
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