Cramer Proposes Historic Nvidia Buyback Plan

CNN's Mad Money host Jim Cramer recently shared an unconventional idea for Nvidia to boost its stock price. He suggested quintupling the company's existing share repurchase authorization and using it to buy back approximately a tenth of the company.

This proposal is inspired by Apple's strategy, where they have repurchased a significant amount of their own stock. Cramer believes this would be an investment in Nvidia itself, rather than just buying back shares.

Nvidia currently has around $99 billion remaining under its current authorization. The company's market capitalization is in the multi-trillion-dollar range. In comparison, Apple recently announced a half-trillion dollar buyback plan.

Cramer argues that the market is undervaluing Nvidia, with the stock trading at just 23 times this year's earnings estimate. He points to the company's impressive order book and profitability as evidence of its growth potential.

When asked about affordability concerns, Cramer stated that he believes Nvidia could afford such a large buyback program without scaling back investments in other areas.