Why is Samsung Electronics stock rising today?

Samsung Electronics stock experienced a 3.1% increase, reaching ₩279,500 on Friday, as investors prepared for an important board meeting. According to reports, the company is expected to officially endorse a substantial shareholder return program, valued between 90 and 110 trillion won, which could potentially surpass the largest capital return initiatives by any South Korean company.

This plan focuses primarily on special cash dividends, with half of the company's free cash flow allocated to shareholders. The anticipation for a buyback announcement was significant after Samsung's rival, SK Hynix, announced a ₩40 trillion buyback earlier in the week. Both companies have pledged to boost shareholder returns following a major artificial intelligence-driven profit over the past year.

Analyst commentary published today further bolstered the positive sentiment. KB Securities predicted that Samsung's share price could quickly settle in the ₩300,000 range, driven by earnings growth stemming from a prolonged memory shortage and the possibility of a special dividend exceeding ₩100 trillion. Samsung's positive performance contributed to a 0.7% rise in the KOSPI index, while rival SK Hynix also saw a 3% increase.