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SK Hynix shares surge over 12% following announcement of a massive 40 trillion won stock buyback program.

SK Hynix shares rose more than 12% in Seoul on Thursday after the company announced a significant stock buyback and cancellation program. The board approved a plan to repurchase and fully cancel 40 trillion won ($28.7 billion) of its own shares over a three-month period starting August 20. This move accelerates the company's shareholder-return program for 2025-2027, aiming to raise the target to over 50% of cumulative free cash flow. Analysts suggest the buyback provides tangible downside support for the share price and reflects confidence in the company's long-term growth outlook despite current memory sector headwinds. JPMorgan analyst Jay Kwon expects the company to pursue additional shareholder-return measures over the next two years, with a total of $130 billion in returns expected over the next year. The announcement also comes as SK Hynix invests 54 trillion Korean won to build new memory chip manufacturing plants to meet growing demand for artificial intelligence components.

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