Jim Cramer congratulates everyone who bought CoreWeave on the deal as he suggested

CoreWeave’s (NASDAQ:CRWV) ascent caught many investors off guard. The company operates in the artificial intelligence industry, so it was bound to get a lot of attention. Furthermore, CoreWeave has a deep partnership with Nvidia (NASDAQ:NVDA) to accelerate cloud computing speeds. 

Retail investors who bought during the week of the IPO have seen their shares more than quadruple in less than three months. The stock continues to rally and is approaching a $100 billion market cap.

However, Jim Cramer was right on the money with this stock. He recommended the stock early and applauded investors who listened to his advice and logged impressive gains. 

“Congratulations to all of the people who bought CoreWeave on the deal as we suggested. It is a great company,” he said.

CoreWeave shares are up by more than 60% since this X post. Wondering what makes CoreWeave so special? These are some of the catalysts driving the stock higher.

Impressive Revenue Growth

CoreWeave is a classic case of a high-growth stock that reports incredible earnings growth but has rising losses. Investors who can look at the growth narrative and wait patiently for the company to turn a profit have been rewarded before with stocks like Crowdstrike (NASDAQ:CRWD) and Shopify (NASDAQ:SHOP) being notable examples. 

Those companies continued to grow for years before they reported profits and those same stocks look more attractive now that the companies generate positive net income. CoreWeave will eventually be profitable, but its revenue growth is hard to pass up.

The AI cloud giant delivered 420% year-over-year revenue growth in the first quarter. It’s hard to generate those types of results, and while revenue deceleration is eventually expected, Nvidia showed us it could take multiple years before CoreWeave’s year-over-year revenue growth rate isn’t in the triple digits. 

OpenAI Just Became A Customer

A recent partnership with OpenAI means revenue growth can continue to accelerate in the upcoming quarters.

“Our strong first quarter financial performance caps a string of milestones including our IPO, our major strategic deal with OpenAI as well as other customer wins, our acquisition of Weights & Biases and many technical achievements,” CEO and co-founder Michael Intrator stated in the press release.

This strategic deal has added $11.2 billion in revenue backlog. It’s not even the company’s only partnership. CoreWeave also partnered with IBM (NYSE:IBM) amid its AI-fueled renaissance to develop compute capacity for its Granite models. 

Innovators Spark Excitement

Cloud computing and artificial intelligence have produced plenty of winners over the years, and CoreWeave is poised to benefit from both of these industries’ tailwinds. The company is gaining a lot of ground in the cloud computing industry. 

Its customers are AI leaders who want their infrastructures to run more efficiently. That creates many opportunities for CoreWeave since its top customers have gigantic budgets. Investors have noticed and bid shares much higher.

Investors who believe AI is in its early innings and want a high-growth company may want to give CoreWeave a closer look. Shares have surged since Cramer’s recommendation, and they have even rallied past the S&P 500 after Cramer’s X post. However, if the company can continue to deliver impressive revenue growth and narrow its losses, the gains can continue. 

The post Jim Cramer congratulates everyone who bought CoreWeave on the deal as he suggested appeared first on 24/7 Wall St..