Jim Cramer suggested on his Mad Money program that Nvidia should quintuple its share repurchase authorization, proposing a half-trillion-dollar buyback program. The comment came as the company posted $96.22 billion in Q2 FY2027 revenue, up over 100% year-over-year, with significant cash generation but also large supply obligations approaching $280 billion. Nvidia has approximately $99 billion remaining under its current authorization.
Speculation around an Nvidia stock buyback intensified on September 1, 2026, following Jim Cramer’s recommendation on Mad Money. Cramer argued the company should quintuple its repurchase authorization and buy back close to 10% of the company. Such a move would rank among the largest buybacks in corporate history. The discussion comes as investors closely watch the Nvidia stock forecast and the daily Nvidia stock price given the company’s substantial cash generation.
Cramer proposed a specific plan. “I quintuple, quintuple, the buyback authorization. Announced a monster half-trillion dollar buyback. Because there’s no better investment for Nvidia than Nvidia,” he stated. Nvidia had roughly $99.0 billion left under its current authorization as of its Q2 FY2027 release, meaning the proposed figure would represent a significant increase.
Cramer framed the issue as a market mispricing problem. “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 said. He noted that since late October, Nvidia shares have gained 8.2%, while the S&P 500 rose 10.7%, calling this underperformance given the company’s rising revenue outlook.
Nvidia’s financials partially support the feasibility of such a buyback. The company posted $96.22 billion in Q2 FY2027 revenue, up 105.9% year over year, with free cash flow of $21.34 billion for the quarter. A record $26 billion returned to shareholders during that period, split between $20 billion in repurchases and $6 billion in dividends. However, supply obligations climbed to $279.0 billion, largely for the upcoming Vera Rubin platform. A cap of $108.5 billion applies to guarantee obligations tied to AI cloud and data center partners.
CFO Colette Kress described the company’s capital allocation strategy. “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,” she said. This places strategic investment ahead of larger buybacks. CEO Jensen Huang added, “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”
