Shares of SK Hynix surged more than 12% in Seoul on Thursday, August 20, after the South Korean chipmaker unveiled a major 40 trillion won ($28.6 billion) share buyback and cancellation programme.
The company plans to repurchase about 24 million shares between August 20 and November 19. SK Hynix also intends to return more than 50% of its cumulative free cash flow generated between 2025 and 2027 to shareholders.
The move comes after a period of sharp volatility in semiconductor stocks. SK Hynix shares had fallen heavily in the previous session as investors grew cautious about high valuations, rising bond yields and the sustainability of AI-related spending.
Investor sentiment improved quickly following the buyback announcement, with expectations that the programme could provide stronger support for the company’s valuation.
SK Hynix remains one of the world’s leading memory-chip manufacturers and a major supplier of high-bandwidth memory used in artificial intelligence infrastructure. Strong AI-related demand has helped strengthen its earnings and cash position, giving the company greater room to reward shareholders.
The rally also lifted broader sentiment in South Korea’s technology sector, with Samsung Electronics posting strong gains as chipmakers led a rebound in the Seoul market.
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