Cramer Urges Nvidia to Unleash $500 Billion Buyback Program

Nvidia's stock has not kept pace with its impressive growth projections, according to Jim Cramer. He believes the company should announce a $500 billion buyback program, buying back roughly 10% of the company on a daily basis and accelerating purchases whenever the stock slips.

Cramer argues that Nvidia's shares are undervalued, and that a large share repurchase program would be in line with Apple's strategy under Tim Cook. Apple spent years repurchasing its own shares when management believed the stock was undervalued, reducing its share count by roughly 40% during Cook's tenure.

Nvidia is already a major player in financing the AI infrastructure buildout and has used its balance sheet to help customers fund purchases of computing infrastructure. Critics have raised concerns about circular financing, where companies provide financial support to customers that then spend that money on their products.

Cramer pushed back against these concerns, saying Nvidia's GPUs retain their value and can be redeployed if a customer runs into trouble.