South Korean chipmaker SK Hynix's quarterly report sent its New York-listed shares up more than 13%, while CNBC said Jim Cramer saw the performance as evidence AI chip stocks can still gain despite doubts about data-center spending.
Micron rose nearly 6%, Arm advanced 4% and AMD added 3%, CNBC reported. The network said the gains came as investors increasingly questioned whether heavy data-center construction spending would deliver enough returns, making SK Hynix's market response a notable counterexample.
CNBC reported revenue topped estimates by about 6%, with gross margin at 85.7%. The company forecast shipment growth in the mid-20% range this quarter, compared with 10% in the third quarter. It also indicated long-term customer agreements effectively cover production through 2029. Cramer argued that committed demand helps explain why SK Hynix expects buyers for additional memory supply as it invests in manufacturing equipment. EconoTimes previously covered SK Hynix's record quarterly revenue.
The outlook matters in a business where adding capacity can unsettle investors. CNBC said Cramer noted that earlier production expansions had raised concerns that excess supply could push memory prices lower. He argued that SK Hynix's customer commitments distinguish the current investment cycle from that historical concern. The company also outlined dividends and stock buybacks as shareholder returns, the network reported.
Cramer cited valuation as another support for the shares: SK Hynix traded at roughly four times projected 2027 earnings, CNBC reported. The network said that multiple reflected doubts about whether the memory boom would last. Cramer presented the combination of results, faster shipment growth and secured orders as conditions that could attract buyers to AI-linked companies despite scrutiny of data-center spending.
CNBC said Cramer also saw the results as supportive for Micron, which is held by Cramer's Charitable Trust. He pointed to Micron's low valuation and similar long-term customer agreements. Cramer said Micron may be able to use its growing cash reserves for a sizable buyback once CHIPS Act funding restrictions ease on Dec. 9.
