Jim Cramer Wants Nvidia to Buy Back $500 Billion. Can Apple’s Playbook Work?

Jim Cramer urges NVIDIA Corporation to authorize a $500 billion buyback, citing Apple Inc. as the model for this strategy. Both companies focus on returning capital to shareholders, but the scale of the demand poses challenges. As of July 26, NVIDIA has $99.3 billion left in its buyback authorization. In the first half of fiscal 2027, NVIDIA repurchased $39.8 billion in shares, including $19.7 billion in the second quarter.

Apple, on the other hand, repurchased $61.8 billion in the nine months ending June 27, with $100 billion more authorized for future purchases. Both companies demonstrate the importance of generating substantial cash to sustain buybacks. NVIDIA's recent revenue surge of 106% to $96.2 billion, combined with AI infrastructure expansion, strengthens its earnings case.

However, supply and capacity commitments, totaling $279 billion across multiple fiscal years, limit flexibility. While Cramer's proposal is appealing, it depends on NVIDIA demonstrating the same funding potential as Apple. The price paid for shares and retained profits per share matter more than the authorization amount. Both companies have insider ownership, with NVIDIA's rising and Apple's stable.

Despite the potential of NVIDIA and Apple as investments, other AI stocks may offer greater upside potential with less risk.