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Jim Cramer says Nvidia’s record buyback could ‘change the trajectory’ of the stock
CNBC • • business
Key Points:
- Nvidia's board approved an additional $150 billion in share repurchases, increasing its total remaining buyback authorization to $235 billion, the largest in history, expected to be completed by fiscal 2028.
- Despite Nvidia's strong financial performance and central role in the AI boom, its stock has underperformed relative to peers, prompting calls from Jim Cramer for more aggressive and consistent buybacks to boost shareholder value.
- Nvidia has committed to returning at least 50% of its free cash flow to shareholders through buybacks and dividends, recently increasing its quarterly dividend, reflecting confidence in sustained financial strength.
- The company continues to support the AI ecosystem through investments and financing, while maintaining enough cash flow to ramp up buybacks without compromising its leadership in AI infrastructure.
- Wall Street projects Nvidia to generate approximately $440 billion in free cash flow over the next six quarters, enabling the company to continue sizable buybacks and capitalize on stock price dips, as advocated by Jim Cramer.
