Jim Cramer says Nvidia should do a half-trillion dollar, Apple-style stock buyback
CNBC’s Jim Cramer said Nvidia should dramatically increase its stock buyback.
TL;DR
- Jim Cramer believes Nvidia should dramatically increase its stock buyback authorization to $500 billion.
- He argues that Nvidia's stock performance does not reflect its extraordinary business growth.
- Nvidia has already increased buybacks, authorizing $80 billion in May and repurchasing nearly $40 billion in the first two quarters of fiscal year 2027.
- Cramer suggests a strategy similar to Apple's, which aggressively repurchased shares when management believed them to be undervalued.
- Concerns about Nvidia's role in financing AI infrastructure through 'circular financing' are mentioned, but Cramer defends the practice by highlighting the residual value of GPUs.
- Nvidia's shares have only risen 8% since its October 2025 GTC conference, trailing the S&P 500's 11% advance during the same period.