Jim Cramer: South Korea Is Mispricing SK Hynix on AI Memory

SK Hynix (000660.KS) has crashed into bear-market territory in Seoul, just days after a blockbuster U.S. debut. Jim Cramer thinks Korean investors are missing something fundamental about where AI memory demand is actually headed.

Rating Change

Cramer has not officially changed his rating, but he indicated that the Korean market is undervaluing the stock. The stock has lost over 20% since its New York listing.

Analyst Rationale

Cramer believes demand for high-bandwidth memory (HBM) used in AI accelerators from NVIDIA (NVDA) will remain strong. SK Hynix is the primary supplier of HBM3 chips to NVIDIA, and as NVIDIA expands Blackwell production, demand for this memory is expected to rise.

Context

Other analysts, such as Goldman Sachs, remain bullish on SK Hynix but have slightly lowered price targets due to cycle slowdown concerns. Micron (MU) and Broadcom (AVGO) have also been affected by the memory sector downturn.

Bottom Line

While Cramer sees an opportunity in the current dip, investors should monitor the company's guidance in upcoming reports, as well as demand trends from NVIDIA and other AI customers.