Cramer Criticizes Data Center Overreliance on Korean Chip Stocks: Market Dominated by Retail Traders Using Leverage

CNBC host Jim Cramer sharply criticized the global AI data center supply chain's heavy reliance on Korean chipmakers SK Hynix and Samsung Electronics, arguing that shares of both companies are increasingly driven by retail investors borrowing money for margin trading.

Retail Market Control

In a series of social media posts, Cramer expressed deep concern that individual traders using borrowed funds are exerting outsized influence on companies powering AI infrastructure, warning that institutional investors are being marginalized in the process.

"The data center reliance on SK and Samsung is so great, and these stocks are controlled by retail traders borrowing money, that's terrible," Cramer posted on X. "Eventually you get a market decided by them, not us..."

The data center reliance on SK and Samsung is so great, and these stocks are controlled by retail traders borrowing money, that's terrible. Eventually you get a market decided by them, not us...

— Jim Cramer, August 19, 2026

Reaction to Massive Buyback

Cramer's criticism coincided with SK Hynix disclosing a regulatory filing to buy back and cancel 40 trillion won worth of treasury shares to boost market confidence.

In response to the Korean chipmaker's aggressive capital allocation, Cramer described it as "SK Hynix doing a massive buyback..." but noted he needed to "see if sellers will be satisfied after recent market volatility."

The U.S.-listed ADRs of the key Nvidia supplier rose nearly 6% in pre-market trading, recovering from a 9.2% decline in the previous session. Its main Korean-listed shares fell 9.75% in Seoul trading on Wednesday. However, the stock recovered, rising 7% in after-hours trading, according to the Chosun Ilbo.

In addition to the direct buyback program running through November, SK Hynix committed to returning more than 50% of its free cash flow generated between 2025 and 2027 to shareholders.

SK Hynix doing a massive buyback... need to watch if sellers will be satisfied

— Jim Cramer, August 19, 2026

Broader Memory Chip Sector Comparison

Discussing broader volatility in the memory chip sector, Cramer identified Micron Technology as the primary domestic reference point for SK Hynix's current trading behavior.

" "The best analogy for SK Hynix is Micron, which fell a lot yesterday," Cramer noted, adding that he is visiting the company's headquarters in Boise.

SK Hynix, along with memory chip peers SanDisk and Western Digital, has turned to stock buybacks to reassure investors worried about AI demand.

The best analogy for SK Hynix is Micron, which fell a lot yesterday. I'm going to Boise today to see them. Can't wait!!

— Jim Cramer, August 19, 2026

How Has SK Hynix Performed in 2026?

The U.S.-listed ADR price has fallen 8.46% since its listing in July. It has risen 1.03% over the past month and 9.86% over the past five days.

On the other hand, the Korean stock is up 130.41% year-to-date, down 18.57% over the past month, and up 470.34% over the past year. Zacks Edge stock rankings indicate SKHY maintains strong price trends in the short, long, and medium term, with a good growth score.