Forget NVIDIA: Jim Cramer Says US Chip Stocks Are 'Joined at the Hip' With SK hynix
Key takeaways
- SK hynix’s decline is pulling the whole semiconductor sector lower, highlighting the company’s outsized influence and the sector’s sensitivity to Chinese competition and AI demand.
- SK hynix shares down 12% in last 5 days
- SK hynix shares down 3.18% at $152.06 pre‑market
- SMH ETF holds most U.S. semiconductor names
What happened
SK hynix Inc. (NASDAQ: SKHY) has driven a broader semiconductor sell‑off, with its shares falling 12% in the last five days and 3.18% on Wednesday. Jim Cramer said the U.S. chip stocks are "joined at the hip" with SK hynix, not NVIDIA, because the memory giant’s performance sets the tone for the sector. Cramer highlighted SK hynix’s size, its role in high‑bandwidth memory, and its exposure to Chinese competition as key factors.
Why it matters
SK hynix’s stock moves influence the SMH ETF, which holds most U.S. semiconductor names, so a decline in SK hynix pulls down the entire sector. The company’s leadership in high‑bandwidth memory and its larger memory business make it more sensitive to supply‑demand shifts and Chinese competition than peers like…
Short-term and longer-term
Short-term. SK hynix’s 3.18% pre‑market drop and the 12% five‑day slide are likely to keep the SMH ETF and other U.S.
Longer-term. Over the next few months, investors should evaluate SK hynix’s position in high‑bandwidth memory against the backdrop of Chinese competition and AI demand.