Jim Cramer: Why a $500 Billion Stock Buyback Would Be Ideal for NVIDIA

On September 1, 2026, Jim Cramer, host of the CNBC show "Mad Money," called on NVIDIA CEO Jensen Huang and the board of directors to launch a $500 billion stock buyback program. The proposal envisions increasing the existing authorization fivefold and repurchasing approximately 10% of all outstanding shares through daily purchases. Cramer emphasized that this was his personal opinion and not an investment recommendation from CNBC. NVIDIA has announced no plans to implement the proposal.

Current Buyback Authorization and Historical Context

According to its own Q2 report for fiscal 2027, NVIDIA had a remaining buyback authorization of approximately $99 billion. The board of directors authorized an additional $80 billion on May 18, 2026. In May 2026, Cramer stated on his show that NVIDIA had repurchased its own shares worth nearly $20 billion in the then-current quarter; at that time, a new $80 billion program had been announced, with approximately $40 billion remaining from the previous authorization.

NVIDIA's market capitalization on September 2, 2026 was approximately $5.46 trillion. Cramer's proposed buyback volume of $500 billion would therefore represent around 9% of the valuation at that time.

Apple as a Model: Aggressive Daily Purchases

Cramer explicitly cited Apple as a strategic benchmark. He said: "I think they should do it like Apple, which was also undervalued, and repurchase a spectacular amount of shares." Apple had previously conducted large-scale buyback programs despite investor skepticism about its valuation.

According to Cramer's vision, implementation should occur on a daily basis and "quite aggressively" – not episodically, but continuously following the Apple model. The CNBC host argued: "There is no better investment for NVIDIA than NVIDIA itself."

Valuation Argument: P/E of 23 at 70% Growth

Cramer called NVIDIA "radically cheap" and cited a price-to-earnings ratio (P/E) of 23 based on expected earnings. This multiple could not be justified given a growth rate of 70% for fiscal 2028 that he cited. He spoke of "absurd" valuation multiples and argued that most investors had not yet fully priced in the future earnings base.

Cramer made clear that his proposal was not directed at management: "My plan is not an indictment of the company. It is an indictment of the market." The recommendation was intended to correct what Wall Street supposedly undervalued, not to criticize NVIDIA's operational strategy.

Classification: Unsolicited Recommendation Without Implementation Intent

Cramer emphasized that he had made the proposal unsolicited to CEO Jensen Huang and NVIDIA's leadership. The company has not indicated any intent to consider or implement the recommendation. The host noted that his statement did not constitute investment advice and did not represent the opinion of CNBC.

Coverage of Cramer's proposal appeared between September 1 and 2, 2026 in multiple financial media outlets, including CNBC, TheStreet, Yahoo Finance, Benzinga, and AOL. The core content – volume, rationale, and Apple comparison – was reported consistently.