CNBC’s Jim Cramer stated that Nvidia should significantly increase its stock buyback, arguing that the chipmaker’s extraordinary growth and profitability are not fully reflected in its share price.
He pointed to the success of Apple’s massive buybacks and said Nvidia should consider a buyback as large as $1 trillion.
“I think, from Nvidia's perspective, there's nothing more valuable in this market than Nvidia,” the “Mad Money” host said.
To be fair, Nvidia has already been stepping up its buybacks. Back in May, Nvidia's board approved an additional $80 billion in share repurchases with no expiration date.
In the first two quarters of fiscal year 2027, Nvidia bought back nearly $40 billion of stock, according to FactSet, an amount almost on par with all of fiscal 2026.
Cramer said the ramp-up is encouraging, but the company should go much further because of the growing disconnect between Nvidia's fundamentals and its stock performance.
“I'd quintuple the buyback authorization – announce a monster half trillion dollar buyback and repurchase a tenth of the company in a fairly aggressive fashion, every day, clockwork, and get bigger on the down days,” he said.
Cramer also noted that Nvidia could put more of its capital toward an investment Wall Street would have an easier time appreciating – its own stock.
“That's why they should do like Apple, which also was valued incorrectly, and repurchase a spectacular amount of stock,” he said.
