Jim Cramer Got His Wish With This Mega AI Stock’s Latest Announcement
Yahoo Finance ·
Jim Cramer Got His Wish With This Mega AI Stock’s Latest Announcement Ramish Cheema Mon, September 28, 2026 at 10:01 PM EDT 4 min read NVDA AAPL NVIDIA Corporation (NASDAQ: NVDA ) made a very important announcement on Monday as it fulfilled Jim Cramer's long-held wish. While the CNBC TV host has ardently defended the firm throughout 2026 despite weak share price performance, he has also insisted that NVIDIA buy back its shares just like Apple did under CEO Tim Cook and CFO Luca Maestri. On Monday, the firm announced that it had increased its share repurchase authorization by $1 billion. In his morning appearance, Cramer asserted that the decision would help the shares: "Okay look, the buyback is, I know I've been pushing for half a trillion, on top of the existing buyback. . .it depends on whether it's going to be the Luca Maestri buyback, the former CFO of Apple, who was always there when the stock dropped. So he was there constantly, but when it dropped, he gobbled it up. If they do that, then you're going to see quite a move. Because there's just a lot of supply at times and they can't buyback stock in the last ten minutes. Stock usually gets jammed out by the zero day option people. But this is a very significant buyback, and I think if they're active and in there every day, it will change the trajectory of the stock. As far as the things that Jensen talked about. . .you saw some, a little bit of the slip there with Ezra Klein last week when he's talking about it's an engineering issue. And George Kurtz, who's integral and he's the CEO of CrowdStrike says, both he and Jensen are tired of the narrative offered by the AI people, everyone can play a role obviously, but, they think they have it. "There's nothing like NVIDIA stock, it's the cheapest stock on next year in the market of the major tech stocks now that Meta's made its move." Along with NVIDIA, these stocks also made the cut in our list of 10 Blue Chip Stocks Jim Cramer is Crazy About . While not directly tied to a firm's narrative on a fundamental basis, share repurchases work by affecting the firm's multiples and, by extension, the price. They reduce the number of shares available for trading, which in turn improves the earnings per share to boost profitability on paper. For NVIDIA, while Cramer believes that share repurchases will help the stock long term, the narrative is nevertheless all about growth. With the firm guiding 70% fiscal year 2028 revenue growth and growing revenue by 106% annually in the second quarter, the debate is about whether the ongoing hyperscaler capital expenditure cycle will sustain to enable high growth even as the base rises. Additionally, while top line growth looks great, the bottom line is what makes it to investors in the form of a higher valuation and dividends. For NVIDIA, higher memory prices and tight semiconductor manufacturing capacity continue to generate risks. These are also indicated through the firm's third quarter gross margin guidance of 75%, which was a full point lower than Q2's 74%. Not to mention, the firm also guided that fiscal Q4 gross margin could range between 71% to 72% before recovering. As for the share repurchases, they could be influenced by the firm's debt levels. On this front, NVIDIA's Q2 debt levels surged significantly, with long term debt jumping to $32.3 billion from the year ago quarter's $7.5 billion. With Cramer having insisted for months that NVIDIA should start share repurchases, perhaps the debt is a reason the firm held off on increasing the buyback authorization. Hedge fund sentiment jumped by ten funds in Q2 and sat at 285, according to Insider Monkey's data, as several hedge funds disclosed new stakes in excess of $20 million. Valuation-wise, NVIDIA trades at a forward P/E ratio of 24.9, which is lower than Intel's 63.29 and AMD's 39.53. Short interest as a percentage of float is 1.27%, also lower than both peer firms. READ NEXT: Jim Cramer Draws the Line on NVIDIA in China: Why National Security Comes First and Jim Cramer Defends His Dell Stance as Investors Complain About Missing Out .
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