CoreWeave’s strong performance and CEO comments spark investor optimism

CoreWeave shares experienced a significant increase, rising nearly 25% on Wednesday, fueled by better-than-expected quarterly revenue and an upward revision of its 2026 guidance released Tuesday evening. This positive news helped alleviate worries about a potential slowdown in investments related to artificial intelligence infrastructure.

During his conversation with Cramer, Intrator highlighted that demand for CoreWeave’s computing capacity currently exceeds supply by a factor of ten. This imbalance has enabled the company to consistently raise prices, bolstering gross margins despite substantial investments in expanding its infrastructure.

Intrator also addressed concerns regarding CoreWeave’s debt, which has negatively impacted the stock’s performance. Despite Wednesday’s rally, shares remain down 15% year-to-date and 55% from their 52-week high of $138, reached on May 6. Other companies in the sector, including Iren and Nebius, have also faced volatility; Iren reported strong earnings last week, while Nebius is scheduled to release its quarterly results Thursday morning.

To manage its debt, CoreWeave has increasingly utilized financing options secured by its equipment and customer contracts, rather than relying solely on traditional bond markets. Cramer noted Intrator’s explanation for avoiding the open market, stating, “He admitted that he’s been tempted to, but ultimately he still believes he can make an even better return building data centers.”

Intrator further revealed that Nvidia H100 chips acquired four years ago are now being contracted at premiums ranging from 20% to 50% above their original cost, indicating a longer-than-expected retention of economic value for the equipment.

Addressing concerns about increasing political scrutiny of data center construction, Intrator affirmed that demand for computing power would continue to drive expansion, even if stricter regulations prompted some projects to relocate internationally.

Cramer acknowledged that while he has adopted a more cautious approach to AI infrastructure stocks due to political and financing risks, completely avoiding the sector could mean missing out on potential gains. He stated, “We’ve taken some data center and related stocks off the table…because we think the AI theme has much more room to run.” The CNBC Investing Club currently holds diversified exposure to the AI boom through chip stocks and companies that support data centers, though this exposure has been recently reduced.