SK Hynix rally lifts AI chip stocks after strong earnings
SK Hynix, a major memory chipmaker from South Korea, just dropped some impressive earnings, and the ripple effect was huge.
Its New York-listed shares jumped over 13%, which also gave a boost to other big names in chips like Micron, Arm, and AMD.
CNBC's Jim Cramer pointed out that this strong report has brought fresh optimism to AI-related stocks.
SK Hynix expects shipment growth mid-20%
In the third quarter, SK Hynix beat revenue expectations by 6% and posted high gross margins at 85.7%.
It is seeing even more demand for memory chips thanks to AI data centers and now expects shipment growth in the mid-20% range (way up from its earlier estimate).
The company has locked in sales deals through 2029 and plans to invest more in manufacturing while rewarding shareholders with dividends and buybacks, a strategy Cramer says could be a model for other AI companies trying to win over investors right now.