Jim Cramer sees major implications from SK Hynix's home-run quarter — SkimNews
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- SK Hynix shares surged more than 13% after better-than-expected results and an upbeat outlook — a performance Jim Cramer on CNBC's "Mad Money" called "a clinic" on getting a stock to move higher.
- SK Hynix topped revenue estimates by roughly 6% with gross margins of 85.7%, and projected shipment growth in the mid-20% range this quarter, up from 10% in the third quarter.
- SK Hynix indicated its production is effectively sold out through 2029, supported by long-term customer agreements, and plans heavy investment in additional manufacturing equipment.
- SK Hynix trades at just four times 2027 earnings — a multiple reflecting doubts about whether the memory boom can last — and outlined substantial shareholder returns through dividends and stock buybacks.
- Micron jumped almost 6% on the SK Hynix report, with Arm advancing 4% and AMD rising 3%.
- Micron trades at a low multiple and has similar long-term customer agreements, Cramer said, adding there's potential to deploy its growing cash pile toward a significant buyback when CHIPS Act funding restrictions ease on Dec. 9; Micron is a holding in Cramer's Charitable Trust.
Why it matters: SK Hynix's 85.7% gross margins and sold-out production through 2029 landed while the stock traded at just four times 2027 earnings, evidence that hard numbers can overcome skepticism about data-center spending. Micron shares rose nearly 6% on that read-through, and Cramer pointed to its low multiple plus a potential significant buyback once CHIPS Act funding restrictions ease on Dec. 9.
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