Cramer Calls for $500B Nvidia Buyback in Radical Market Critique

Jim Cramer recently made a public plea to Jensen Huang, CEO of Nvidia (NVDA), urging him to reconsider the company's cash usage.

Cramer proposed quintupling Nvidia's existing share repurchase authorization and using it to buy back approximately 10% of the company's stock, mirroring Apple's strategy.

This move would amount to a half-trillion-dollar buyback program, with Cramer arguing that there is no better investment for Nvidia than its own stock.

Cramer justified his proposal by pointing out that Nvidia's market value has not accurately reflected the company's impressive growth and profitability, citing a price-to-earnings ratio of 23 times this year's earnings estimate.

Nvidia has approximately $99.0 billion remaining under its current authorization, and Cramer believes the company can afford to undertake such a significant buyback without scaling back investments in other areas.