CNBC host Jim Cramer sharply criticized the global AI data center supply chain’s heavy reliance on South Korean chipmakers SK Hynix Inc. (NASDAQ:SKHY) and Samsung Electronics, arguing their share prices are increasingly dictated by margin-trading retail investors.
Retail Market Control
In a series of social media posts, Cramer expressed deep concern over how individual traders borrowing money hold outsized sway over the companies powering AI infrastructure, warning that institutional investors are being sidelined in the process.
“It’s awful that so much of the data center depends on SK and Samsung and those stocks are controlled by retail traders borrowing money,” Cramer posted on X. “You end up with a market decided by them, not us…”
Monster Buyback Reaction
Cramer’s critique arrived as SK Hynix unveiled a regulatory filing to buy back and cancel 40 trillion won, or $29 billion, worth of its treasury shares to bolster market confidence.
Reacting to the South Korean chipmaker’s aggressive capital allocation, Cramer described it as an “SK Hynix with monster buyback…” but noted he would “need to see if sellers are appeased” following recent market turbulence.
The key Nvidia Corp. (NASDAQ:NVDA) supplier’s U.S.-listed ADR jumped nearly 6% in premarket trading, recovering from a 9.2% selloff in the previous session. ts primary South Korean listing also fell 9.75% in Seoul trading on Wednesday. The stock, however, recovered 7% in after-hours trading, according to The Chosun Daily.
Beyond the immediate repurchase plan running through November, SK Hynix committed to allocating over 50% of its free cash flow generated between 2025 and 2027 toward shareholder returns.
Broader Memory Sector Comparisons
Addressing broader volatility across the memory chip landscape, Cramer identified Micron Technology Inc. (NASDAQ:MU) as the primary domestic reference point for SK Hynix’s current trading action.
“The best analogue to SK Hynix here is Micron, which was down huge yesterday,” Cramer noted, adding that he was visiting the company’s headquarters in Boise.
SK Hynix joins memory peers SanDisk Corp. (NASDAQ:ANDK) and Western Digital Corp. (NASDAQ:WDC) in turning to share repurchases to calm investors worried about AI demand.
How Has SK Hynix Performed In 2026?
The U.S.-listed ADR shares were 8.46% lower since its July listing. It was up 1.03% over the last month and 9.86% higher over the last five days.
On the other hand, the Korean shares were up 130.41% YTD, down 18.57% over the month, and higher by 470.34% over the year.
Benzinga’s Edge Stock Rankings indicate that SKHY maintains a strong price trend in the short, long, and medium terms, with a good growth score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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