As SK Hynix gears up for its Nasdaq debut through American depositary receipts on Friday, Jim Cramer said the AI memory-chip leader offers compelling long-term potential but cautioned investors to keep their initial exposure limited.
AI Memory Demand Makes SK Hynix An Attractive Bet On Mad Money, Cramer said the artificial intelligence (AI) boom has transformed the memory-chip market, making SK Hynix one of the biggest beneficiaries as demand for high-bandwidth memory used in AI accelerators continues to surge, CNBC reported on Thursday.
"We know the memory chip business is on fire and if you're willing to accept the volatility, I think you could do a lot worse than this one," Cramer said.
Despite the company's massive rally since the launch of OpenAI’s ChatGPT in late 2022, Cramer argued the stock still appears attractively valued.
"Their memory chips may sell at a huge premium, but the stock trades at a discount," he said, noting that the shares trade at just over seven times this year's expected earnings.
