SK Hynix plans $28.6 billion buyback after share price declines
SK Hynix, a leading producer of high-bandwidth memory crucial for Nvidia's AI chipsets, announced on August 19 that it will buy back and cancel up to 24 million of its own shares worth 40 trillion won ($28.61 billion) between August 20 and November 19. The move aims to return a larger portion of excess cash to shareholders, following record profits driven by strong demand for AI memory chips.
This buyback, combined with a commitment to allocate more than 50% of free cash flow generated between 2025 and 2027 for shareholder returns, indicates that SK Hynix believes memory pricing will not decline further. Analysts view the move as a response to investor concerns over the durability of AI spending by U.S. technology companies and pressure to boost returns through dividends or buybacks.
The South Korean chipmaker's net cash balance stands at about 69 trillion won as of the second quarter.
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