Cramer Reveals What Boosted NVDA’s Stock!

Cramer Reveals What Boosted NVDA’s Stock! Report prepared for: Unknown Publisher Date: 30 Aug 2026

1. Cramer’s take – why the stock ripped • Jim Cramer argues Nvidia has become “the barometer for what might be … a third, some would say a half of the economy,” so every confirmed uptick in AI cap-ex now translates into an outsized move in the shares. He says investors finally recognized that the latest earnings report proved hyperscalers are “still spending aggressively” and that Nvidia’s GPU resale values are holding up, easing fears of an AI hardware glut. (thestreet.com) • The immediate catalyst was the 26 Aug 2026 FY-27 Q2 earnings beat (revenue +106 % Y/Y, GAAP EPS $2.46) and a gigantic $26 bn capital-return quarter, which Cramer highlighted on his show the same evening as evidence that management “knows exactly what to do with its cash.” (investor.nvidia.com)

2. Dividend policy, history & yield • Quarterly cash dividend held at $0.25/sh since FY-14; next payment 1 Oct 2026 to holders of record 10 Sep 2026. (investor.nvidia.com) • FY-26 cash dividends paid: $974 m; five-year CAGR of the dividend is essentially 0 %—management prefers buybacks. (sec.gov) • At the 29 Aug 2026 close (price $217.55) the indicated annual payout of $1.00/sh equals a 0.46 % forward yield. (stockanalysis.com) (AFFO/FFO metrics are not applicable to a fab-light semiconductor designer.)

3. Leverage, maturities & coverage • Gross notes outstanding: $8.5 bn; net cash position of ≈$33 bn when offset by $42 bn of cash, equivalents and marketable debt securities (FY-26 10-K). (sec.gov) • Maturity ladder (millions): 2027 $1,000; 2028-30 $2,750; 2031-35 $1,250; 2036+ $3,500. (sec.gov) • Interest expense FY-26: $259 m versus operating income $130.4 bn → interest-coverage ratio ≈503×. Liquidity risk is therefore minimal. (sec.gov) • Credit: Fitch last affirmed an ‘A/F1’ long- and short-term IDR; outlook Stable. (assets.fitchratings.com)

4. Capital-return discipline • Board added $60 bn to the buyback authorization (Aug 2025). FY-26 repurchases: 282 m sh. for $40.4 bn; $99 bn authorization remains today. (sec.gov)

5. Valuation snapshot (29 Aug 2026 close) • Price $217.55 Market cap $5.28 tn Trailing P/E 27.3× • EV/EBITDA 24.9× (trailing) (stockanalysis.com) Peer comps: AMD 119.7×; AVGO 97.6× trailing P/E. • Free-cash-flow yield (FY-26 FCF $72 bn) ≈1.4 %.

6. Key risks & red flags a. Valuation – even after the post-earnings pop, NVDA trades at ~25× EBITDA vs. its own five-year median 38×; absolute multiple still discounts flawless execution. b. Concentrated demand – four hyperscalers account for >50 % of revenue; any joint procurement shift or in-house silicon success could sting. (sec.gov) c. Export controls – US restrictions on advanced GPUs for China/HK/Russia triggered a $4.5 bn inventory charge in FY-26; rules keep tightening. (sec.gov) d. Massive purchase obligations – $95 bn long-term supply commitments limit flexibility if demand slows. (sec.gov) e. Rising competitive intensity from AMD, Intel, Google TPU, custom ASICs.

7. Open questions for further diligence • Will management finally hike the dividend to match the company’s cash-generating power, or remain purely buyback-centric? • How much of the newly announced $500 bn third-party AI-infrastructure financing platform will ultimately reside on Nvidia’s balance sheet as guarantees? • Is the commercial-paper program (expanded to $25 bn) a precursor to larger, shorter-dated funding needs? • Can the company secure non-TSMC advanced-node capacity at scale to diversify geopolitical risk?

————————————————— Source metadata (chronological) turn9search0 TheStreet, “Nvidia Stock Becomes Key Economy Signal for Cramer,” 2 wks ago turn9search4 TheStreet, “Jim Cramer resets investors’ biggest Nvidia fear,” 27 Aug 2026 turn8view0 Nvidia IR, “NVIDIA Announces Financial Results for Q2 FY-27,” 26 Aug 2026 turn0search0 StockAnalysis, “NVIDIA Dividend History, Dates & Yield,” crawled 30 Aug 2026 turn6finance0 STIFFS market feed, NVDA quote 29 Aug 2026 turn0search1 SEC Form 10-K (FY-26, filed 25 Jan 2026) turn3view0 10-K extract – cash & securities table turn4view0 10-K extract – debt maturities schedule turn5view0 10-K extract – interest expense & operating income turn10view0 10-K extract – share repurchases & dividends turn7search2 StockAnalysis, NVDA statistics page, crawled 28 Aug 2026 turn6finance1 STIFFS market feed, AMD quote 29 Aug 2026 turn6finance2 STIFFS market feed, AVGO quote 29 Aug 2026 turn11search13 Fitch Ratings disclosure, “Fitch affirms Nvidia ratings at A/F1,” Sept 2020

For informational purposes only; not investment advice.