Jim Cramer Wants NVIDIA (NVDA) to Bet $500 Billion on Itself as AI Financing Risks Grow

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Jim Cramer Wants NVIDIA (NVDA) to Bet $500 Billion on Itself as AI Financing Risks Grow Syeda Seirut Javed Thu, September 3, 2026 at 1:56 PM EDT 3 min read NVDA Jim Cramer wants NVIDIA Corporation (NASDAQ: NVDA ) to dramatically increase its buybacks. During the September 1 episode of Mad Money, he mentioned that the stock does not reflect the company's earnings power even as its expanding role in AI infrastructure creates new financial risks. He noted, "NVIDIA's become the banker for the AI data center build-out." The suggestion comes as NVIDIA becomes increasingly involved in the infrastructure supporting AI customers. Anthropic recently agreed to a $35 billion cloud-computing deal with NVIDIA-backed Lambda, while Hut 8 is developing a Texas data center tied to the arrangement. NVIDIA holds the lease on the facility, according to Reuters. Cramer said, "I like that NVIDIA knows this business better than anybody else." The operating case remains exceptionally strong. Fiscal Q2 2027 revenue was $96.2 billion, up 106% from a year earlier, while data center revenue reached $89 billion, up 117%. Gross margin was 75%. Management expects approximately 70% revenue growth in fiscal 2028. The company also has substantial capacity for capital returns. NVIDIA repurchased 94 million shares for $19.7 billion in fiscal Q2 and 203 million shares for $39.8 billion in the first half of fiscal 2027. Cramer suggested that the company should go substantially further, calling for a $500 billion authorization and repurchases of roughly 10% of the company. He believes NVIDIA Corporation (NASDAQ:NVDA) should direct substantially more capital toward its own stock, "Right now, I believe there's no better investment for NVIDIA than NVIDIA." He also said, "Whatever NVIDIA is doing simply isn't being rewarded by Wall Street." NVIDIA Corporation (NASDAQ:NVDA) faces several risks beneath its exceptional growth. AI infrastructure spending could slow before the company's growth expectations do, while its heavy reliance on a handful of customers leaves revenue vulnerable to changes in spending plans. Hyperscalers are also developing custom chips that could reduce reliance on NVIDIA, while competitors such as Broadcom are gaining ground in AI accelerators and networking. China remains largely constrained because of export restrictions, which gives domestic chipmakers room to strengthen their ecosystems. There are also risks from NVIDIA's expanding role in the AI infrastructure buildout. Cramer acknowledged that "many of the companies NVIDIA backs are non-investment grade." The company is now helping customers and infrastructure partners secure financing and capacity, which creates greater exposure if projects are delayed, financing conditions deteriorate, or AI infrastructure fails to generate expected returns. Reuters reported on August 27, citing WSJ, that NVIDIA paused certain revenue-sharing agreements with AI cloud companies, highlighting that the financing model is still evolving. For investors, the final risk is valuation. With expectations already exceptionally high, even continued earnings growth may not be enough if the pace of AI spending or NVIDIA's expansion begins to fall short of what the stock price implies. Institutional positioning remains supportive. As per Insider Monkey's tracking of more than 1,000 hedge funds, 285 hedge funds held positions in Q2, up from 275 in Q1. Short interest is relatively low, as it stood at approximately 1.23% of the public float. The positioning suggests that the market is not heavily betting against NVIDIA Corporation (NASDAQ:NVDA). The more important point is whether its extraordinary AI growth can justify the increasing commitments and financial exposure behind that growth. Cramer's conclusion is clear: "My plan is not an indictment of the company; it's an indictment of the market." While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . READ NEXT : Jim Cramer Says GE Vernova (GEV) Order Book Might Have Gotten Soft and Jim Cramer Points to Government Stake for Intel (INTC) Drop . Disclosure: None. Follow Insider Monkey on Google News .

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