Cramer calls SK Hynix a cheap AI play but warns history may repeat

CNBC's Jim Cramer weighed in on SK Hynix's upcoming Nasdaq debut via American depositary receipts, calling the South Korean memory-chip maker a compelling but volatile bet on the AI boom. The stock looks cheap, Cramer said, but he cautioned that the AI-driven memory cycle could end like previous boom-and-bust cycles, according to CNBC.

"buying it is a bet that the AI-driven memory boom won't end like previous cycles."

machinebrief.comWhere Jim Cramer stands on SK Hynix's massive offering

Cramer's warning highlights a recurring tension in semiconductor investing: the memory market has historically swung between severe shortages and gluts, often punishing investors who chase peaks. SK Hynix is a major producer of high-bandwidth memory used in AI chips, which has driven its recent growth.

To manage the risk, Cramer advised a cautious approach. He recommended that investors take small positions and buy into weakness, acknowledging both the potential upside and the cyclical dangers, as CNBC reported. The stock's apparent cheapness relative to earnings may reflect the market's skepticism about the durability of the current boom.

Cramer's comments come as SK Hynix seeks a U.S. listing to tap deeper investor interest in AI hardware. While the company benefits from strong demand from Nvidia and other AI leaders, the memory industry's history suggests that the current upcycle may not last indefinitely.