TV host Jim Cramer warned that bankers publicizing heavy demand for SK Hynix’s massive U.S. listing are playing a risky game, saying too much hype around the oversubscribed deal could leave too little room for buyers after the stock begins trading.
Cramer Warns Bankers Against Overhyping Demand
"The bankers are letting everyone know how oversubscribed the SK Hynix deal is," Cramer wrote on X on Wednesday. "That’s a dangerous game.. i hope they still price it at a little bit of discount.. Not too much to scare people but enough to keep the deal tight."
Cramer’s concern is that bankers may use strong demand to justify aggressive pricing for the South Korean memory chipmaker’s American depositary receipts, limiting aftermarket gains and draining market liquidity.
SK Hynix Taps AI Memory Demand
SK Hynix’s $28 billion U.S. share sale has been more than seven times oversubscribed, Reuters reported on Wednesday, highlighting strong demand for one of the most important companies in the artificial intelligence supply chain. The ADRs are expected to trade on Nasdaq under the ticker SKHY.
The offering would finance new factories and equipment as SK Hynix expands production of high-bandwidth memory, or HBM, chips used in advanced AI systems. The company is a key supplier to Nvidia Corp. (NASDAQ:NVDA), whose processors dominate the AI data center market.
The share sale is set to be the world’s second-biggest equity offering after SpaceX’s (NASDAQ:SPCX) record $85.7 billion IPO last month.
Listing Could Narrow Micron Valuation Gap
Earlier on Wednesday, Cramer also asked whether the market had enough liquidity to absorb an SK Hynix deal at reasonable prices, citing Rivian Automotive Inc. (NASDAQ:RIVN) as an example of a recent offering that struggled to price near its trading level.
The warning highlights the tension between strong fundamentals and investor fatigue. SK Hynix is profitable and central to the AI memory boom, unlike loss-making EV companies that depend more heavily on future promise.
The U.S. listing is also expected to help SK Hynix narrow its valuation gap with Micron Technology Inc. (NASDAQ:MU), which benefits from direct access to U.S. investors. Nvidia CEO Jensen Huang has said SK Hynix will remain Nvidia’s largest memory partner, while the memory shortage could persist for years.
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