CNBC host Jim Cramer stated that Micron Technology shares currently trade in correlation with the South Korean chipmaker SK Hynix. This dependency persists despite Micron being a US-based company, which Cramer described as an unfortunate situation for shareholders.
The market correlation was evident on October 13, when SK Hynix shares fell 10.09% in Seoul, followed by a 5% decline in Micron’s stock. Analysts note that both companies are influenced by shared factors, including competition from China’s ChangXin Memory Technologies and their mutual focus on the high-bandwidth memory market.
SK Hynix reported record third-quarter operating profits of ₩83.33 trillion, marking a 632% year-on-year increase and exceeding market expectations. Despite these strong results, the company's shares in Seoul had previously closed nearly 8% lower, highlighting the volatility affecting the sector.
The integration of these stocks may further increase following the debut of SK Hynix American depositary receipts on the Nasdaq in July. While some analysts, such as those at F&C Equities, have previously favored Micron due to potential tariff risks and uncertainty in the Korean market, the linkage between the two firms remains a significant factor for investors.
