Jim Cramer Urges Nvidia to Launch Record $500 Billion Share Buyback Following Apple's Playbook

CNBC host Jim Cramer argued on Mad Money that Nvidia should dramatically scale up its capital return program by announcing a monster $500 billion share repurchase plan and buying back stock daily, modeled after Apple's historic buyback strategy.
Key arguments and details behind the proposal include:
- Valuation Disconnect: Cramer pointed out that despite massive growth—including an outlook for roughly 70% revenue growth in fiscal 2028—Nvidia's stock has lagged, rising only about 8% since its October 2025 GTC event while the S&P 500 gained 11%.
- The Apple Model: During Tim Cook's tenure, Apple repurchased more than $800 billion in stock, reducing its share count by roughly 40% and providing a consistent demand source that supported its valuation.
- Current Repurchase Pace: Nvidia's board approved an additional $80 billion buyback in May with no expiration date, and the company returned 60% of its free cash flow year-to-date in fiscal 2027 by buying back nearly $40 billion across the first two quarters. Cramer argues this is still not enough to overcome market skepticism regarding circular AI financing and valuation.