CNBC host Jim Cramer sharply criticized the global AI data center supply chain's heavy reliance on South Korean chipmakers SK Hynix Inc. (NASDAQ: SKHY) and Samsung Electronics, arguing that their share prices are increasingly dictated by margin-trading retail investors. In a series of social media posts on August 19, 2026, Cramer expressed concern over how individual traders borrowing money hold outsized sway over companies powering AI infrastructure, warning that institutional investors are being sidelined.

"It's awful that so much of the data center depends on SK and Samsung and those stocks are controlled by retail traders borrowing money," Cramer posted on X. "You end up with a market decided by them, not us…"

Capital Allocation Response

Cramer's critique arrived as SK Hynix unveiled a regulatory filing to buy back and cancel 40 trillion won, or $29 billion, worth of its treasury shares to bolster market confidence. Reacting to the aggressive capital allocation, Cramer described it as an "SK Hynix with monster buyback…" but noted he would "need to see if sellers are appeased" following recent market turbulence.

The key Nvidia Corp. (NASDAQ: NVDA) supplier's U.S.-listed ADR jumped nearly 6% in premarket trading, recovering from a 9.2% selloff in the previous session. Its primary South Korean listing also fell 9.75% in Seoul trading on Wednesday. The stock recovered 7% in after-hours trading, according to The Chosun Daily.

Beyond the immediate repurchase plan running through November, SK Hynix committed to allocating over 50% of its free cash flow generated between 2025 and 2027 toward shareholder returns.

Sector Comparisons

Addressing broader volatility across the memory chip landscape, Cramer identified Micron Technology Inc. (NASDAQ: MU) as the primary domestic reference point for SK Hynix's current trading action.

"The best analogue to SK Hynix here is Micron, which was down huge yesterday," Cramer noted, adding that he was visiting the company's headquarters in Boise.

SK Hynix joins memory peers SanDisk Corp. (NASDAQ: ANDK) and Western Digital Corp. (NASDAQ: WDC) in turning to share repurchases to calm investors worried about AI demand.

What the Numbers Show

The divergence between SK Hynix's U.S. and Korean listings highlights distinct market dynamics. While the U.S.-listed ADR shares were 8.46% lower since its July listing, the Korean shares were up 130.41% year-to-date. This disparity underscores the localized pressure on the domestic listing despite the recent premarket recovery in the ADRs.

Benzinga's Edge Stock Rankings indicate that SKHY maintains a strong price trend in the short, long, and medium terms, with a good growth score.

SK Hynix Inc. (NASDAQ: SKHY) shares rose 8.13% to $166.96 on Thursday, participating in a broad rally across the memory and storage sector. The movement was driven by renewed investor confidence in the memory chip industry, supported by strong earnings reports from the AI, cloud, and server sectors that reinforced expectations for robust demand.

The stock's performance provided a catalyst for traders utilizing leveraged exchange-traded funds tied to the company. There are currently seven U.S.-listed leveraged and inverse ETFs directly linked to SK Hynix. Five of these funds target 2X long exposure, while two are designed for bearish positions. Following SK Hynix's daily gain, each of the five 2X long ETFs gained around 18%.

Sector-Wide Gains and Catalysts

The rally was catalyzed by SanDisk Corp. (NASDAQ: SNDK), which unveiled a bullish multiyear financial outlook at its investor day. SanDisk outlined targets including an adjusted gross margin of about 80% and an adjusted free cash flow margin of roughly 50%. The company also plans to return 100% of excess cash to shareholders after investing in the business.

The positive sentiment spread across key players in the memory and storage space:

• Micron Technology Inc. (NASDAQ: MU) gained about 6%.
• Western Digital Corp. (NASDAQ: WDC) climbed about 8%.
• Seagate Technology Holdings PLC (NASDAQ: STX) advanced nearly 5%.

Broader market indices also posted gains, with the Nasdaq rising 1.31% and the S&P 500 increasing 0.64%.

Leveraged ETF Lineup

Traders have multiple vehicles to amplify exposure to SK Hynix's daily moves. The bullish lineup includes Leverage Shares 2X Long SK Hynix Daily ETF (BATS: SKHX), ProShares Ultra SK Hynix (NYSE: SKHU), Direxion Daily SK Hynix Bull 2X ETF (NYSE: SKHL), GraniteShares 2X Long SK Hynix Daily ETF (NASDAQ: SKUU), and T-REX 2X Long SKHY Daily Target ETF (NYSE: HYNX).

Bearish options are also available through Leverage Shares 1X Short SK Hynix Daily ETF (BATS: SKHZ) and GraniteShares 2X Short SK Hynix Daily ETF (NASDAQ: SKDD).

These products differ in expense ratios, liquidity, and assets. The proliferation of 2X products gives traders more choice, making liquidity and trading costs increasingly relevant when deciding between funds with broadly similar objectives. Investors note that these ETFs amplify daily moves, not long-term performance, meaning returns can diverge substantially from twice the stock's cumulative return over multiple sessions due to daily resets and compounding.

Analyst Outlook and Institutional Holdings

SK Hynix maintains a Buy consensus rating with an average price forecast of $245.50. Several analysts initiated coverage on August 4:

Institutional interest remains significant, with SK Hynix held by the NestYield Dynamic Income ETF (NYSE: EGGY) and NestYield Visionary ETF (NASDAQ: EGGQ). The stock carries a 4.77% weighting in each fund.

What the Numbers Show

Intel Corporation (NASDAQ: INTC) added to the sector's momentum after its CEO stated on a podcast that the company is exploring "some of the new memory architecture," describing it as one of his "pet projects." This comment suggests potential future demand drivers for advanced memory solutions, complementing the current strength in AI-related storage needs highlighted by SanDisk's aggressive margin targets. For SK Hynix, this backdrop is particularly important given its exposure to the high-bandwidth memory market, which has become a critical component of AI infrastructure.