SK Hynix to buy back $28.6 billion in shares
The world’s second-biggest memory chipmaker acted to boost investor confidence after weeks of turmoil in its share price.
SK Hynix, the world's second-largest memory chipmaker, announced plans to buy back and cancel over $28.6 billion worth of shares, aiming to bolster investor confidence following a recent decline in its stock price. The company raised more than $26 billion in a share sale last month, the largest by a non-US firm, as the demand for its memory chips surges due to the ongoing AI boom.
However, the persistent volatility in SK Hynix's stock price indicates ongoing investor concerns about the sustainability of the debt-fueled AI buildout. Google recently secured an AI chip deal allowing it to purchase $12 billion in shares of semiconductor firm Marvell, as the hyperscaler's memory requirements grow, further fueling analyst concerns about circularity in AI financing.
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