Abstract:
Nvidia’s market value evaporated by nearly $450 billion on Thursday. Jim Cramer, a well-known American financial anchor, said that this darling in the field of artificial intelligence should buy back its own shares. Cramer posted on the X platform that when a company’s stock becomes the most cost-effective asset on the market, the company should buy back its own stock.
He added: "Nvidia can buy back and continue to increase its holdings, or it can let the stock price continue to fall."
The company’s current share price has fallen by about 25% from its historical high of $243.37 set on October 6, and its market value has evaporated by $1.39 trillion, including a single-day market value loss of $446.94 billion on Thursday.
Concerns about restrictions on data center construction added to the sell-off. According to data from Citi Research, as of October, there have been more than 500 cases of bans and suspensions of approvals for data centers across the United States, and by mid-2025, there will be almost zero such measures.
In Texas, Democrat Gina Hinojosa campaigned on a promise to suspend all data center approvals until lawmakers passed protections; she ultimately defeated incumbent Gov. Greg Abbott.
Independent Sen. Bernie Sanders renewed his call for a nationwide moratorium after the midterm elections, while Rep. Yassamine Ansari (D-Ariz.) urged Democrats to push for a ban on artificial superintelligence.
Nvidia’s stock price fell 9.26% on Thursday to close at $181.60. The stock has fallen 2.40% so far this year and 6.75% over the past year.
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