CNBC's Jim Cramer said SK Hynix's strong earnings showed AI stocks can still rally despite growing skepticism about data center spending. Its New York-listed shares jumped more than 13% after better-than-expected results and an upbeat outlook, lifting Micron almost 6%, Arm 4% and AMD 3%. Revenue beat estimates by roughly 6%, with a gross margin of 85.7%, and the company projected shipment growth in the mid-20% range this quarter, up from 10% in the third quarter. Cramer noted the stock trades at just four times 2027 earnings and that production is effectively sold out through 2029 under long-term customer agreements, with demand so strong that more supply won't satisfy the market. He also said Micron, a holding in his Charitable Trust, could deploy its growing cash pile toward a significant buyback when CHIPS Act funding restrictions ease on December 9.
Summary written by Upside AI from the original article. Read the source for full details.
Keywords
NVDAsemiconductorsearningsartificial intelligence
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▲ Likely positiveNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/28/2026 | 215.38 |
| Change that session | -1.17% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Data Center Spending Will Surge to $1.4 Trillion in 2027. Here’s 1 Stock to Buy With $500 to Capitalize on This Massive Opportunity
Gartner projects spending on data center systems could rise 55% in 2027 to nearly $1.4 trillion, driven by hyperscalers and AI companies building out AI infrastructure. The article argues this benefits chipmakers, noting chips make up 95% of an AI data center server rack's value, which should lift demand for chipmaking equipment. Applied Materials reported fiscal 2026 third-quarter revenue up 25% year over year to a record $9.12 billion and non-GAAP EPS up 41% to a record $3.50, and guided fiscal fourth-quarter revenue to $10.25 billion (up 51%) with EPS of $4.02 (up 85%). The company expects annual semiconductor revenue to reach $1.7 trillion to $3.2 trillion by 2030, targets services revenue above $12 billion, and aims for a 40% non-GAAP operating margin by then. The stock has fallen 35% since early July to around $400 and trades at 23 times forward earnings; the author estimates that if EPS reaches $23.69 in fiscal 2029 and the stock trades at 30 times earnings, it could reach $710, a 77% gain over two years.
- Nvidia’s AI Dominance Could Have Further to Run
Nvidia shares sit 11% below their 52-week high of $243.37 after another strong quarter, and the 24/7 Wall St. price target of $259.77 over 12 months implies 20.26% upside from $216.20. The model gives the stock a positive rating with high confidence, citing fiscal Q2 2027 revenue of $96.22 billion, up 105.8%, and Q3 guidance of $108 billion. Management expects fiscal 2028 revenue to grow about 70% in a supply-constrained outlook, and the Vera Rubin platform lifts the revenue opportunity to $40 billion per gigawatt from $25 billion for Blackwell. Critics point to gross margins that may bottom at 71% to 72% in Q4 as memory costs rise, along with $279 billion in supply commitments and a bear-case estimate of $226.09. The consensus target from 59 analysts is $328.95.
- Amazon Says It Will Start Selling Its AI Chips to Other Companies in 2027
In its third-quarter call on October 29, 2026, CEO Andy Jassy said Amazon will start selling its Trainium AI chips to outside companies in late 2027, but named no buyers, prices, volumes or revenue targets. Diluted EPS of $1.89 missed the $1.96 consensus, and shares fell 7.30% to $226.00 after hours, following a 4.25% regular-session drop. Trailing 12-month free cash flow was a $42.4 billion outflow against about $220 billion of 2026 capital spending, and selling chips outright books revenue sooner than renting them through AWS over a five-to-six-year life. The open-sourced TorchNeuron software lets PyTorch code run on Trainium and could weaken NVIDIA's CUDA lock-in, though NVIDIA still leads with data center revenue of $89.02 billion in one quarter, up 117%. AWS sales rose 39% to $46.0 billion, while supply of advanced chips remains the main constraint.
- Chip Maker SK Hynix Posts Record Quarter as AI Memory Demand Overwhelms Supply
SK Hynix reported record third-quarter revenue of 104.6 trillion won (almost $78 billion), up 328% year on year and above 100 trillion won for the first time. Operating profit reached 83.3 trillion won ($65.5 billion), up 632%, for an 80% operating margin, while net income of 39.8 trillion won rose 216% year on year but fell 58% from the second quarter due to net non-operating expenses of 32.6 trillion won. The company says memory demand will keep exceeding supply through 2030, with DRAM and HBM volumes through 2029 effectively sold out. Long-term agreements with 14 key customers cover more than 50% of its 2027 and 2028 production capacity. Major cloud customers reported cloud revenue growth of 30% to 80% year on year, and SK Hynix expects investment to rise significantly in 2027 as the first phase of its Yongin chip complex enters full-scale operation.
- SK Hynix delivered on third-quarter results — but the outlook is what really mattered to Wall Street and the AI trade
South Korean memory-chip maker SK Hynix says supply constraints will persist through 2030. The article notes that its outlook, rather than its third-quarter results alone, was what mattered most to Wall Street and the AI trade.
- AMD CFO Delivers Bullish Update That Investors Will Want to Hear
AMD's stock has risen 142% in 2026 so far and more than 330% over the past five years, amid expectations that CPUs will play a bigger role in AI computing. Speaking at the Citi 2026 Global TMT Conference, CFO Jean Hu said AMD sees its total addressable market (TAM) reaching $2 trillion to $3 trillion by 2030, compared with her earlier estimate of roughly $2 trillion for its semiconductors and other products. The figure reflects the total market size its products can serve rather than expected revenue. In the second quarter, AMD's revenue rose 50% year over year to $11.5 billion, with data center sales up 107% to $6.7 billion on demand for its EPYC CPUs and Instinct GPUs. While Nvidia leads the ultra-high-end GPU market for training AI models, AMD has been gaining ground and winning server CPU share from Intel.
Related markets
Latest news
- Anthropic releases amended IPO prospectus with third-quarter financials
Anthropic filed an amended Form S-1 with the SEC on Monday, adding updated financials for the nine months ended Sept. 30. The AI company reported $33.24 billion in revenue for that period, up roughly 1,200% from a year earlier, and a $104 billion net loss, compared with a $25.1 billion loss over the same stretch in 2025. The initial filing only included financials through the first half of the year. In the amended filing, Anthropic said it has entered into purchase commitments and lease agreements with an aggregate committed spend of about $895.4 billion, substantially all related to compute and infrastructure.
- Amazon Stock Climbs After Phillip Securities Upgrade to Buy
Amazon shares rose 1% in morning trading after Phillip Securities upgraded the stock to Buy from Accumulate, pointing to improving demand visibility across its businesses. Analyst Helena Wang set a $330 price target, implying potential upside of 37% from the previous close. The firm sees Amazon's spending on infrastructure and other growth initiatives as able to reinforce its competitive position over the longer term, and possibly make it harder for smaller rivals to challenge the company in its key markets.
- GE Aerospace (GE) Falls Alongside Industrials
Bristol Gate Capital Partners' Q3 2026 letter says its US Equity Strategy lagged the S&P 500 (+2.3%), as declines in industrial and semiconductor-equipment holdings offset gains in tech. GE Aerospace fell 16.3% in the quarter despite 22% adjusted EPS growth and raised full-year earnings and free-cash-flow guidance; it beat earnings expectations, and analysts raised their estimates and price targets. In September, GE Aerospace agreed to acquire precision-castings supplier Consolidated Precision Products for $11.75 billion to help secure turbine blade supply, shortly after SpaceX said it would cast turbine blades in-house. GE shares closed at $301.80 on October 30, 2026, with a 52-week range of $268.91 to $388.84.
- Wall Street May Be Underestimating This Smaller AI Chip Stock
24/7 Wall St. sets a 12-month price target of $284.80 for Marvell Technology, implying 14.5% upside from $248.71, with a buy rating at 90% confidence. Marvell reported record revenue of $2.739 billion in August, up 37% year over year, while data center revenue rose 46% to $2.17 billion, or 79% of sales. The bull case is $352.54 and the bear case is $218.43. Key risks include customer concentration if hyperscalers bring chip design in-house, and margin pressure as custom chips make up a growing share of sales; fiscal Q3 non-GAAP gross margin is forecast at 57.5% to 58.5%, down from 58.9%. Marvell trades at 31x forward earnings, above Broadcom's 18x but below AMD's 34x.
- Amazon's latest report left stock investors with one big question
Andy Jassy spent earnings week making promises about AI. According to the article, investors read something different in the numbers.
- Chipotle Mexican Grill Is Down 15% and Growing. Here's Why It Has the Makings of a Monster Stock for the Next Decade.
Chipotle Mexican Grill (CMG) shares fell 15.5% in 2026 through Oct. 29, while the S&P 500 Growth index gained 12.1%. The article cites higher prices squeezing consumer spending and cost pressures on profitability, but says management's "Recipe for Growth" plan under CEO Scott Boatwright is showing early results: second-quarter same-store sales (comps) rose 2.2%, with higher traffic adding 1 percentage point. Operating margin contracted 2.5 percentage points to 15.7% on higher costs. Chipotle had over 4,200 restaurants as of June 30 and plans to add 350-370 this year. Its P/E ratio fell from 35 to 30, still above the S&P 500's 26 but below its five-year median of 51.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.