Nvidia stock buyback talk really picked up on September 1, 2026, and it happened right after Jim Cramer used his Mad Money platform to say Nvidia should quintuple its repurchase authorization and buy back close to 10% of the company. A Nvidia buyback that big would also rank among the largest in corporate history, and it comes right as people are already watching the Nvidia stock forecast, the daily Nvidia stock price, and where it head next given how much cash the company is generating right now.
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What Cramer Actually Proposed
Cramer didn’t just toss out a vague idea either. His actual Nvidia stock buyback pitch was to quintuple the existing authorization and announce a half-trillion dollar program, and he argued there’s no better investment for Nvidia than Nvidia itself, which is a pretty bold thing to say on live television.
Jim Cramer said this on Mad Money:
“I quintuple, quintuple, the buyback authorization. Announced a monster half-trillion dollar buyback. Because there’s no better investment for Nvidia than Nvidia.”
Nvidia had roughly $99.0 billion left under its current authorization as of the Q2 FY2027 release, so this particular Nvidia buyback figure would be a pretty sharp jump from where things stand right now.
Why Cramer Says The Stock Is Mispriced
Cramer framed the pitch as a market problem rather than a company problem, and that’s an important point to note. Wall Street, in Cramer’s view, just isn’t pricing Nvidia stock the way its order book and its margins actually deserve, and that’s basically the whole argument behind this Nvidia stock buyback idea in the first place.
Cramer had this to say about the valuation:
“I think it’s absurd that Nvidia has an amazing order book and huge profitability, yet it trades at just 23 times this year’s earnings estimate at a much lower P/E and then sold out years.”
He also brought up how the stock has traded since late October, and he pointed out that Nvidia gained 8.2% while the S&P 500 rose 10.7% over that same stretch, which he called underperformance given how much the company has raised its own revenue outlook. That comparison also feeds pretty directly into any stock forecast built on the idea that Nvidia stock price action has lagged behind the actual fundamentals.
Can Nvidia Afford A Half-Trillion Dollar Nvidia Buyback?
Nvidia’s own numbers back up part of Cramer’s affordability case, at least on paper. The company posted $96.22 billion in Q2 FY2027 revenue, up 105.9% year over year, and free cash flow came in at $21.34 billion for the quarter. A record $26 billion also went back to shareholders in that period, split between $20 billion in repurchases and $6 billion in dividends.
There are also some big obligations stacking up against that cash pile right now. Supply obligations climbed to $279.0 billion, and memory for the upcoming Vera Rubin platform accounts for most of that, while a cap of $108.5 billion applies to guarantee obligations tied to AI cloud and data center partners, and numbers like these matter a lot for anyone trying to judge whether this Nvidia stock buyback idea is even realistic right now.
CFO Colette Kress described the company’s approach on the earnings call:
“Relative to our plan to return 50% or more of free cash flow, we have returned 60% on a year-to-date basis. And going forward, we intend to increase and return excess free cash flow net of strategic uses.”
So that framing puts strategic investment ahead of any bigger Nvidia stock buyback, and that runs pretty much against everything Cramer is pushing for.
Jensen Huang described the demand picture behind those numbers on the same call:
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”
Cramer was careful to say his Nvidia stock buyback idea isn’t company guidance, and Nvidia hasn’t announced anything like this, so it’s still just an opinion at the time of writing. Still, with Nvidia stock price sitting close to $217 right now, and with a forecast that already leans pretty bullish among analysts, this whole stock buyback debate gives investors one more number to watch heading into the next quarter.