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

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

Rich Duprey

Wed, September 2, 2026 at 6:58 PM GMT+3 4 min read

• NVDA +1.80%

Quick Read

• Ferragu calls $400 NVDA "very, very, very likely" within 18 months, citing 70% projected growth and single-digit earnings multiples most investors haven't repriced.

• Cramer wants NVDA to buy back roughly 10% of itself at a cost exceeding $500B, dwarfing the $99B remaining buyback authorization.

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Two CNBC voices looked at the same stock inside the same 12-hour window and reached opposite conclusions about what it needs. Jim Cramer wants NVIDIA (NASDAQ:NVDA) to launch a buyback roughly equal to a tenth of its market value to fix what he sees as broken price discovery. New Street Research's Pierre Ferragu says the earnings will do the work themselves.

Ferragu's $400 Call, No Corporate Action Required

Speaking Tuesday morning, Ferragu said a $400 stock price is "very, very, very likely" within 18 months, driven by earnings power alone. He cited Jensen Huang's guidance for at least 70% business growth next year and framed NVIDIA as operating in "halcyon days" with no visible cycle top. His valuation argument leans on multiple compression: NVIDIA, he argues, is trading at "single digit earnings multiples" against a forward earnings base most investors have not fully repriced.

From the September 1 close of $217.44, a move to $400 implies roughly 84% upside and a market cap approaching $10 trillion. The stock traded at $226.67 on Wednesday morning.

Cramer's Half-Trillion-Dollar Prescription

Cramer's remedy is louder. He wants NVIDIA to buy back roughly a tenth of itself, which against a $5.46 trillion market cap pencils out to more than $500 billion. NVIDIA's board authorized $80 billion in additional repurchase capacity on May 18, 2026, leaving approximately $99 billion remaining at quarter end. That is a fraction of what Cramer is asking for.

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Cramer recently disclosed his highest cash position in 25 years, then prescribed the largest corporate repurchase in history to lift a stock he says is mispriced. NVIDIA has been actively returning capital. Management said it returned "$26 billion to shareholders" in the latest quarter, comprising "$20 billion through share repurchases" and "$6 billion through our quarterly dividend of $0.25 per share."

Why the Fundamentals Favor Ferragu

Q2 FY27 revenue reached $96.22 billion, up 105.8% year over year, with Data Center revenue of $89.02 billion. Non-GAAP EPS came in at $2.22, the fifth consecutive beat. Huang told analysts that "AI is now doing productive and useful work" and "AI is generating profitable tokens." Consensus already reflects the acceleration: analysts model FY2028 EPS of 13.1277 on revenue of $573.6 billion. At those earnings, a $400 share price requires a forward multiple in the low 30s, roughly where the stock trades now.

The full-chain put/call ratio of 0.48 shows options traders are positioned in Ferragu's direction. Cramer's buyback demand may make headlines. Ferragu's math is the one that would compound.

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