NVDA
Cramer’s hot take: buy your own stock, big time
Jim Cramer’s basically telling NVIDIA to treat its own shares like the best asset on the menu. He says the company is sitting on enough cash flow and AI gravity to justify a jaw-dropping $500 billion buyback — a move that would make even Apple look like it’s playing small-ball.
His logic is simple: NVIDIA is not just selling chips anymore. It’s financing pieces of the AI data center buildout, using its own balance sheet like a very expensive backstage pass. That’s clever, but also messy enough that some investors may still be underestimating the real economics here.
The other bullish camp isn’t exactly backing away
Meanwhile, Melius head of research Ben Reitzes is still riding the NVIDIA train. He kept a Buy rating and lifted his price target to $420 after the company’s latest earnings, saying the stock now has more visibility on margins over the next six quarters than most of its semiconductor peers.
Reitzes also likes NVIDIA’s open-model strategy, calling it a kind of razor-and-blade setup:
- give away or promote the models
- keep the demand flowing toward NVIDIA chips, software, and infrastructure
- let physical AI and enterprise use cases do the heavy lifting over time
Why this matters to you
If you own NVIDIA, the debate isn’t whether AI demand exists. It’s whether the market is properly pricing how many ways NVIDIA can keep turning that demand into profit — through chips, software, financing, and maybe someday a buyback so huge it needs its own zip code.
Big picture: when the Street starts arguing about whether a megacap is too cheap instead of too expensive, you know the AI trade is still very much alive.