CoreWeave, Inc. (NASDAQ:CRWV) is one of the stocks on Jim Cramer’s radar. A caller asked if CRWV is a stock to avoid or if the recent decline presents a buying opportunity. Here’s what Cramer had to say:

Man, you are going into the lion’s den. I don’t particularly like going into the lion’s den. I’d rather have you buy NVIDIA. I think NVIDIA’s had a lot of good things happen in the last 72 hours. No one’s paying any attention to them except pour moi. That’s French.

Photo by Adam Nowakowski on Unsplash

CoreWeave, Inc. (NASDAQ:CRWV) runs a cloud platform designed to power and scale GenAI workloads with high-performance compute, storage, networking, and managed services. Cramer highlighted NVIDIA’s investment in the company during the January 26 episode, as he stated:

… NVIDIA announced that it invested another $2 billion in CoreWeave, buying 22.9 million shares at $87.20 per share. It was a fantastic verification for CoreWeave, demonstrating that it’s the preferred provider of NVIDIA chips. These are hard to procure. If you’re a big hyperscaler, you’re going to get a serious allocation. If you’re not, though, you know who to go to now. You can set up with NVIDIA by getting it through CoreWeave. This morning on Squawk on the Street, we got to interview CoreWeave founder and CEO, Michael Intrator, as well as Jensen Huang himself, coming from China to talk to us about the deal…

While we acknowledge the potential of CRWV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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