Two of Wall Street's biggest AI stock stories collided in September 2026: Jim Cramer's push for a historic half-trillion-dollar Nvidia buyback, and Palantir's surprise rally following a major new partnership with Nvidia itself. Here's what actually happened with both stocks and why Cramer's own track record on Palantir makes this moment particularly notable.
Cramer's Radical Nvidia Buyback Proposal
On the September 1, 2026 episode of Mad Money, Jim Cramer made an unusually specific pitch to Nvidia's leadership. According to CNBC's report, Cramer argued Nvidia should dramatically escalate its stock buybacks, modeling the move on Apple's playbook: "I'd quintuple the buyback authorization – announce a monster half trillion dollar buyback and repurchase a tenth of the company in a fairly aggressive fashion, every day, clockwork, and get bigger on the down days."
Cramer's frustration stemmed from what he sees as a disconnect between Nvidia's fundamentals and its stock performance. According to CNBC, despite Nvidia forecasting roughly 70% revenue growth for fiscal 2028, shares were up just 8% since the company's October 2025 GTC conference, trailing the S&P 500's roughly 11% gain over the same period. "Whatever Nvidia's doing, it simply is not being rewarded by Wall Street," Cramer said.
How This Compares to Nvidia's Actual Buyback Activity
Nvidia has, in fact, already been ramping up buybacks. According to TheStreet, Nvidia's board approved an additional $80 billion in share repurchases in May 2026 with no expiration date, and the company bought back nearly $40 billion of stock across the first two quarters of fiscal 2027, almost matching its entire fiscal 2026 repurchase total. Nvidia CFO Colette Kress addressed shareholder returns directly on the company's August 26 earnings call, noting the company had already exceeded its own return target: "Relative to our plan to return 50% or more of free cash flow, we returned 60% on a year-to-date basis."
Cramer's proposed $500 billion program would dwarf that existing pace substantially. According to 24/7 Wall St, Nvidia's $21 billion in quarterly free cash flow supports the affordability case Cramer is making, though the outlet also notes Nvidia carries roughly $279 billion in supply obligations that directly compete with buybacks for that same capital.
It's worth being clear that this remains entirely Cramer's personal opinion. Nvidia has made no announcement matching his proposal, and as CNBC and other outlets covering the segment note, his on-air comments don't reflect CNBC's official view.
Meanwhile, Palantir Surges on a New Nvidia Partnership
In a twist that ties directly back to Nvidia, Palantir stock rallied significantly in September 2026 following news of a major new partnership between the two companies. According to 24/7 Wall St, Nvidia announced it selected Palantir Foundry software to manage the supply chain for its 1.3 million-part Vera Rubin server rack, effectively making Nvidia a high-profile enterprise reference customer for Palantir's platform. Palantir shares jumped 9% to $127.31 in midday trading the day the news broke, leading a broader rally across AI-software stocks.
The timing was notable for one specific reason: Cramer had called Palantir "ice cold for the first half of this year" on his September 8 broadcast, just two days before Nvidia's endorsement sent the stock rallying, according to 24/7 Wall St's reporting.
Cramer's Palantir Price Target
Separately, Cramer has reaffirmed a bullish long-term view on Palantir despite his "ice cold" comment about its recent performance. According to Yahoo Finance, Cramer reiterated a $250 price target on Palantir, roughly 43% above where the stock traded near $175 at the time. Wall Street analysts have moved in a similar direction recently: UBS analyst Karl Keirstead raised his target from $220 to $250 on September 15, and D.A. Davidson's Gil Luria made the same move from $200 four days earlier, both citing demand for sovereign AI as a key growth driver. Those upgrades followed Palantir's Q2 results, in which revenue reached $1.94 billion, up 93% year-over-year, beating Wall Street estimates.
The "Inverse Cramer" Factor
It's worth noting a piece of market folklore relevant here: Yahoo Finance's coverage points out that Cramer's price calls are often described by investors as a coin flip, popularizing the "Inverse Cramer" trade, where some investors bet on the opposite of his predictions. Given that Palantir rallied on strong fundamental news just days after Cramer's "ice cold" comment, and years after his original price target, this episode adds another data point to that ongoing debate, however investors choose to interpret it.
What This Means for Investors
Two separate but connected storylines are worth tracking here. First, whether Nvidia moves anywhere closer to the scale of buyback Cramer is proposing will be a signal worth watching in coming earnings calls, given the company has already meaningfully increased its own repurchase pace independent of his commentary. Second, Palantir's direct, tangible partnership with Nvidia, managing real infrastructure for one of the most important AI hardware rollouts in the industry, arguably matters more for long-term valuation than any single TV commentator's price target, bullish or bearish.
For more on how major AI and tech companies are navigating investment decisions in 2026, see our related coverage on our Oracle stock analysis and Elon Musk's SpaceX earnings call breakdown.
Frequently Asked Questions
1. What did Jim Cramer propose for Nvidia?
On his September 1, 2026 Mad Money broadcast, Cramer proposed Nvidia quintuple its buyback authorization and launch a $500 billion stock repurchase program, modeled on Apple's approach, repurchasing roughly 10% of company shares.
2. Has Nvidia actually announced this buyback?
No. This remains Cramer's personal opinion and recommendation. Nvidia has not announced a buyback of this scale, though the company has already increased its repurchase pace significantly in fiscal 2027.
3. Why did Palantir stock rally in September 2026?
Palantir shares jumped 9% after Nvidia announced it selected Palantir Foundry software to manage the supply chain for its 1.3 million-part Vera Rubin server rack, a major enterprise endorsement of Palantir's platform.
4. What is Jim Cramer's price target for Palantir?
Cramer has reaffirmed a $250 price target on Palantir, roughly 43% above where the stock traded near $175 at the time of his comments in September 2026.
5. Did Jim Cramer call Palantir a bad stock?
He described Palantir as "ice cold for the first half of this year" on his September 8, 2026 broadcast, just two days before Nvidia's partnership announcement sent the stock rallying, even as he maintained a long-term bullish $250 price target.