Cramer Says Micron Stock Does Whatever SK Hynix Does in Korea, and He Dislikes It

CNBC host Jim Cramer says Micron Technology (MU) trades in step with SK Hynix, and he dislikes it. The remark arrived simply earlier than the South Korean chipmaker posted document quarterly earnings.

That leaves Micron shareholders uncovered to Seoul buying and selling, despite the fact that the corporate is predicated in the US. Cramer known as the setup unlucky.

Why Does a US Memory Stock Follow Seoul?

A viewer requested Cramer on Mad Money whether or not risky Micron fits a long-term maintain or choices straddles. Cramer answered that Micron strikes with SK Hynix’s buying and selling in Korea.

“I’m hoping the linkage ends at some point, nevertheless it hasn’t but.”

Jim Cramer, MadMoney

The sample held on Oct. 13. SK Hynix closed 10.09% decrease in Seoul, SBS reported, and Micron’s US shares then sank about 5%.

However, Wall Street had already declined on Monday, CNBC reported, so the affect might run each methods.

Together, SK Hynix and Samsung Electronics account for greater than half of South Korea’s inventory market capitalization, Yahoo Finance famous.

Shared triggers additionally matter. China’s ChangXin Memory Technologies (CXMT), a DRAM maker, introduced a denser memory-cell design. That CXMT chip advance hit each shares.

Both firms additionally promote high-bandwidth reminiscence (HBM), the chips stacked beside AI processors, into the identical demand cycle.

Can the Link Break After SK Hynix’s Record Quarter?

SK Hynix on Oct. 28 prolonged Korea’s memory chip boom with document quarterly outcomes. Third-quarter working revenue hit 83.33 trillion gained ($62.8 billion), up 632% 12 months on 12 months. JoongAng famous the determine topped the 76.96 trillion gained consensus.

Its Seoul shares had closed nearly 8% decrease the day earlier than. Still, Micron’s response might present whether or not the hyperlink additionally holds on excellent news.

One dealer sees an upside to Micron’s US footing. F&C Equities favored Micron in July due to Korean market uncertainty and tariff dangers.

SK Hynix’s American depositary receipts (ADRs) debuted on Nasdaq in July, letting US buyers commerce each leaders collectively. That might deepen the overlap Cramer needs to finish.

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