SK Hynix reported earnings that beat expectations, sending its New York-listed shares up more than 13 percent. The South Korean memory maker posted revenue roughly 6 percent above analysts’ forecasts and posted an 85.7 percent gross margin. The surprise lift also buoyed other semiconductor names, with Micron gaining almost 6 percent, Arm rising 4 percent and AMD up 3 percent.
Jim Cramer of CNBC’s ‘Mad Money’ said the results demonstrate that AI-related equities can still rally despite growing market skepticism about massive data-center spending. He noted that SK Hynix’s stock trades at about four times projected 2027 earnings, a valuation low enough to allow a sharp price move when results exceed expectations.
The company’s revenue topped estimates by roughly six percent, while gross margins reached 85.7 percent, underscoring operational efficiency. SK Hynix also forecast shipment growth of between 20 and 22 percent for the current quarter, a notable acceleration from the roughly ten percent increase reported in the prior quarter.
Cramer highlighted that SK Hynix’s production capacity is effectively booked through 2029, backed by long-term agreements with key customers. He argued that such contracted demand signals sustained appetite for memory chips that power AI data-center workloads, mitigating concerns that a surge in supply could depress prices.
The firm announced plans to spend heavily on additional manufacturing equipment, a move traditionally feared could create oversupply. Cramer said the confidence to expand despite historic price-pressure cycles reflects an extraordinary belief in continued demand. He also noted that SK Hynix outlined sizable shareholder returns through higher dividends and ongoing stock buybacks.
Cramer linked the upbeat SK Hynix outlook to potential upside for other memory makers, specifically pointing to Micron, which he holds in his charitable trust. He cited Micron’s low valuation and similar long-term customer contracts, and suggested that easing of CHIPS Act funding restrictions on Dec. 9 could enable a sizable buyback using the company’s growing cash reserves.