CoreWeave, Inc. (CRWV) Stock; Soars 300% Since March IPO – Jim Cramer Credits Meme Stock Frenzy

TLDR;

:CoreWeave shares soared over 300% since IPO; Jim Cramer calls it a meme stock squeeze. The company raised $2 billion in bonds to refinance debt but faces heavy upcoming payments. CoreWeave runs 32 AI data centers and secured a major lease boosting its growth prospects. Analysts remain cautious with price targets near $70; meme traders might rotate to Palantir.

Shares of CoreWeave the artificial intelligence data center operator, have surged over 300 percent since the company went public on Nasdaq in late March 2025. This remarkable rally has drawn the attention of CNBC’s Jim Cramer, who attributes much of the stock’s explosive rise to a wave of meme stock enthusiasm fueled by retail traders.

As CoreWeave closed at a new high of $163.10 on Wednesday, Cramer likened the surge to explosive meme stock-style growth.

I do think that Coreweave is a meme stock in that some hedge funds got short it and now they are being skinned alive by memesters

— Jim Cramer (@jimcramer) June 4, 2025

From IPO to Meme Stock Sensation

Notably, CoreWeave went public on March 28 with shares priced at $40. Since then, the stock has climbed dramatically, hitting over $107 per share within just over two months and marking an impressive gain of more than 300 percent. This surge places CoreWeave among the standout performers in the market this year. Investors have been drawn by the company’s rapid expansion in AI infrastructure and the support of industry giant Nvidia, which holds a stake in the firm.

Cramer’s statement captures a market trend increasingly common in recent years, where retail investors rally behind stocks with strong narratives, especially those targeted by short sellers. Short interest in CoreWeave surged by a full percentage point in late May and has remained steady at around 3.10 percent since early June, highlighting the ongoing pressure hedge funds face as meme traders push the stock higher.

Balancing Growth and Debt

While the stock price climbs, CoreWeave must navigate a challenging financial landscape. The company raised $2 billion in a high-yield bond offering with a 9.25 percent interest rate, aiming to refinance existing debt. This move comes amid a total debt load exceeding $8 billion as of late 2024, with CoreWeave facing $7.5 billion in debt and interest payments by the end of 2026. Despite these heavy obligations, the company continues to invest aggressively in expanding its AI data centers, now operating 32 facilities with over 250,000 GPUs and more than 360 megawatts of power.

CoreWeave’s recent long-term lease agreement with Applied Digital has added to investor optimism. This deal signals steady demand for CoreWeave’s computing power and strengthens its foothold in the AI infrastructure sector.

Investor Sentiment and Market Dynamics

Not everyone shares the bullish outlook on CoreWeave. Sell-side analysts generally maintain a cautious stance, with an average price target near $70, implying the stock could fall significantly from current levels. Some investors worry about a potential sell-off after lockup periods expire. Meanwhile, Cramer also noted that meme traders might not keep pumping CoreWeave indefinitely without rotating funds.

He pointed to Palantir Technologies, another AI-related stock, which “shed 2.37% to $130.01 on Wednesday” after strong gains earlier in the year, saying, “There may not be enough money from meme people to keep chasing CoreWeave without dumping some Palantir. I think that’s what happened today.”

Looking Forward

CoreWeave’s rapid ascent illustrates how meme stock dynamics and emerging technology sectors can collide to create extraordinary market moves. While retail enthusiasm has propelled the stock to impressive heights, investors should weigh the company’s significant debt and operational risks carefully. Ultimately, CoreWeave’s ability to manage its financial obligations while scaling its AI infrastructure will determine whether it can sustain its place as a top-performing stock in the evolving AI market.

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