CNBC host Jim Cramer says Micron Technology (MU) trades in step with SK Hynix, and he dislikes it. The comment arrived just before the South Korean chipmaker posted record quarterly earnings.
That leaves Micron shareholders exposed to Seoul trading, even though the company is based in the US. Cramer called the setup unfortunate.
Why Does a US Memory Stock Follow Seoul?
A viewer asked Cramer on Mad Money whether volatile Micron suits a long-term hold or options straddles. Cramer answered that Micron moves with SK Hynix’s trading in Korea.
“I’m hoping the linkage ends one day, but it hasn’t yet.”
Jim Cramer, MadMoney
The pattern held on Oct. 13. SK Hynix closed 10.09% lower 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 influence may run both ways.
Together, SK Hynix and Samsung Electronics account for more than half of South Korea’s stock market capitalization, Yahoo Finance noted.
Shared triggers also matter. China’s ChangXin Memory Technologies (CXMT), a DRAM maker, announced a denser memory-cell design. That CXMT chip advance hit both stocks.
Both companies also sell high-bandwidth memory (HBM), the chips stacked beside AI processors, into the same demand cycle.
Can the Link Break After SK Hynix’s Record Quarter?
SK Hynix on Oct. 28 extended Korea’s memory chip boom with record quarterly results. Third-quarter operating profit hit 83.33 trillion won ($62.8 billion), up 632% year on year. JoongAng noted the figure topped the 76.96 trillion won consensus.
Its Seoul shares had closed nearly 8% lower the day before. Still, Micron’s reaction may show whether the link also holds on good news.
One broker sees an upside to Micron’s US footing. F&C Equities favored Micron in July because of Korean market uncertainty and tariff risks.
SK Hynix’s American depositary receipts (ADRs) debuted on Nasdaq in July, letting US investors trade both leaders together. That could deepen the overlap Cramer wants to end.
