Jim Cramer wants NVIDIA Corporation (NASDAQ:NVDA) to authorize a $500 billion buyback and purchase shares daily. His September 1 Mad Money argument points to Apple Inc. (NASDAQ:AAPL) as the model. Both businesses return substantial capital, but their cash demands complicate copying the same strategy.
Nvidia’s quarterly filing shows $99.3 billion of remaining authorization at July 26. Cramer’s half-trillion figure is his proposal. Nvidia actually repurchased $39.8 billion during the first half of fiscal 2027, including $19.7 billion in its second quarter.
The amount authorized is only the beginning
Reducing shares gives remaining owners a larger claim on future profits, assuming the business performs and issuance does not offset repurchases. Spending more is attractive when the purchase price understates those future earnings; an impressive dollar total alone cannot establish that.
Apple Inc. demonstrates the funding side. It repurchased $61.8 billion during the nine months ended June 27, while generating $117 billion of operating cash and spending $6.8 billion on property and equipment. Its April 30 additional $100 billion authorization gives management flexibility without requiring immediate purchases.
Apple’s cash generation supports continuing returns, although investors still need underlying earnings growth. Its July 30 results included a tariff refund that added $0.11 to quarterly earnings per share. Buybacks cannot make such a benefit recur, and paying too much for shares would weaken future returns.
For NVIDIA Corporation, quarterly revenue of $96.2 billion, up 106%, strengthens the earnings case. Expanding AI infrastructure also absorbs capital. Supply and capacity commitments reached $279 billion across multiple fiscal years, including $92 billion in the remainder of fiscal 2027. Those obligations support future sales, but they make preserving flexibility valuable if customer demand changes. Some agreements can be adjusted, potentially at additional cost.
Larger repurchases need durable profits
Historical ownership offers perspective without settling Cramer’s proposal. Insider Monkey tracked 285 Nvidia holders in Q2 2026, ten more than Q1’s 275; Fisher increased its shares approximately 3%. Apple’s count slipped one to 169 from 170, while Berkshire’s 227.9 million shares were unchanged. These filings predate the September comments.
Nvidia’s August 14 short-interest snapshot also came earlier: 285,956,804 shares, 1.23% of float and 2.5 days to cover.
Apple supplies a credible example of funding repurchases from cash generation. Nvidia can increase shareholder returns as earnings expand, but committing to Cramer’s scale needs a stronger funding case than frustration with the share price. For both stocks, the price paid and profits retained per share matter more than the authorization headline.
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