Jim Cramer Says SK Hynix Is a Buy After Its Record-Breaking $26.5B U.S. IPO

South Korean chip giant SK Hynix is set to begin trading on Nasdaq through American depositary receipts (ADRs) after completing a $26.5 billion offering. The deal is the largest U.S. listing ever by a foreign company. It is also the second-largest IPO in the U.S., right behind SpaceX's $85.7 billion offering.

Ahead of the debut, CNBC's Jim Cramer said investors looking to benefit from the AI boom should consider the company.  Although he warned that this also comes with risks.

"We know the memory chip business is on fire," Cramer said. “If you’re willing to accept the volatility, I think you could do a lot worse than this one.”

SK Hynix gets a major boost from AI Demand

The South Korean firm is one of the world's leading memory chip makers and a supplier to Nvidia. The demand for advanced memory chips has continued to grow as companies invest hundreds of billions of dollars into AI systems.

The company's growth is quite notable. SK Hynix’s shares have grown by 2,550% since ChatGPT was launched in November 2022. The rally pushed its overall market value above $1 trillion at the start of 2026.

Even with that run, Cramer said the stock still looks reasonably valued. According to him, the company trades at just over seven times expected earnings this year.

"Their memory chips may sell at a huge premium, but the stock trades at a discount," he said.

Reports highlighted that the offering saw interest that was more than seven times the number of available shares. The company sold 177.9 million ADRs at $149 each, raising $26.5 billion.

Each ADR is one-tenth of a common share traded in Seoul. This gives U.S. investors easier access without needing to buy the SK Hynix shares on a foreign exchange.

Can the AI boom change the memory chip cycle?

In all the bullishness, Cramer still highlighted an important question investors should consider before buying memory chip stocks.

Historically, memory chip companies have been known for their boom-and-bust cycles. Strong demand would surely lead to higher prices and profits. But eventually, new supply enters the market, which could cause prices to fall and earnings to weaken.

“The big concern is that, historically, memory chips have been a boom-and-bust business, so when supply eventually catches up with demand, you don’t want to be left holding the bag,” Cramer added.

He said the biggest question now is whether AI has changed the narrative in the memory chip market or if the sector will later on just return to its usual cycle.

For context, the SK Hynix stock has fallen by 25% from its June 25 peak. Other stocks like Samsung Electronics and Micron also saw pullbacks despite solid earnings reports.

Cramer also noted that the decline may be an opportunity for investors because it means they are no longer buying at the “tippy-top” of the stock.

Notably, SK Hynix’s move comes as South Korea continues to build up infrastructure in the global AI race. Earlier this year, the government shared plans to invest around $880 billion in technology firms.