SK Hynix Rises 14% in Debut on Wall Street as Demand for Memory Chips Soars Amid AI Frenzy
Cramer said the stock trades at just over 7 times expected earnings and urged investors to buy only a small position because memory chips remain volatile.
- On Friday, South Korean chipmaker SK Hynix began trading on the Nasdaq through American Depositary Receipts, giving U.S. investors direct access to the world's largest maker of high-bandwidth memory chips.
- The roughly $26.5 billion offering ranks among the largest share sales ever, providing Icheon-based Hynix capital to build new factories and tap the world's largest pool of investors.
- CNBC's Jim Cramer noted Hynix trades at roughly 5.8 times forward earnings despite the AI boom, yet warned that "the big concern is that, historically, memory chips have been a boom and bust business."
- Cramer advised investors to "put on a small position and leave room to buy more into weakness," describing the stock as a "rollercoaster that can go down fast."
- Semiconductor stocks have lost momentum in recent weeks amid investor concerns about slower AI spending, with analysts warning that oversupply fears remain inherent to the industry despite strong earnings.
26 Articles
26 Articles
The second largest IPO behind SpaceX is running successfully. Demand is far higher than supply at the Nasdaq debut of Korean AI supplier SK Hynix.
Watch Thornburg's Di Zhou Sees Memory Supercycle
SK Hynix's US debut is off to a strong start, with its ADRs indicated to open above the offering price. Di Zhou, portfolio manager at Thornburg Investment Management, says, "We're currently in a memory supercycle. Fundamentals are very strong, and SK Hynix is one of the highest-quality pure-play memory companies globally." She speaks on Bloomberg Open Interest.
Jim Cramer Says SK Hynix Analysts Must Raise Numbers: What It Means for the Biggest Nasdaq IPO in Years
Jim Cramer is calling on Wall Street analysts to act before Monday's open, and the pressure he is putting on the SK Hynix syndicate reveals exactly how fragile the biggest Nasdaq IPO in years could become at the starting gate.
(New York = Yonhap News) Correspondent Kim Yeon-sook = SK Hynix entered the NASDAQ market in New York, USA on the 10th (local time).
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