Cramer Wants Nvidia to Buy Back a Tenth of Itself but One Analyst Expects the Stock To Hit $400 Without It

Analyst Pierre Ferragu believes a price of $400 for NVIDIA (NVDA) is almost certain within 18 months, backed by anticipated 70% business expansion and low earnings multiples that many investors have yet to recognize. In contrast, CNBC's Jim Cramer is advocating for the tech giant to repurchase roughly 10% of its market value, which would cost over $500 billion, far surpassing the remaining $99 billion in authorized buybacks.

Ferragu's prediction hinges on NVIDIA's earnings growth, while Cramer argues the stock is underpriced and needs a substantial buyback to improve price discovery. Ferragu argues NVIDIA is operating in "halcyon days" with no visible peak in the market cycle and cites Jensen Huang's optimistic guidance for the company's future. If NVIDIA's stock price reaches $400, that would equate to an 84% increase from its current level and a market cap nearing $10 trillion.