SK Hynix moves to calm market with US$29 billion share buyback
Buyback plan follows the US$26.5 billion it raised in August in a US listing
SK Hynix, the South Korean memory chipmaker, announced plans to buy back 40 trillion won (US$29 billion) of stock in an effort to stabilize its shares. This move comes after the company raised US$26.5 billion through its US listing in August, a period marked by market excitement surrounding an AI rally. However, investor confidence has since waned due to concerns over the sustainability of AI hardware spending and increasing demands for dividend payouts.
The company aims to return more profits to investors and reassure local shareholders who were dissatisfied with the issuance of new shares for its US listing.
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