SK Hynix Announces Historic $28.6B Share Buyback Fueled by AI Revenue Surge
South Korean memory chip titan, SK Hynix, has launched a groundbreaking shareholder return program. The company plans to buy back and cancel an astounding 40 trillion won (approximately $28.6 billion) of its own shares. This marks the largest treasury share cancellation in the history of South Korean listed companies.
The board gave its approval for the move on August 19. The purchases began on August 20 and will continue until November 19, 2026. The buyback encompasses about 24.07 million shares, which is roughly 3.3% of total shares outstanding, based on a closing price of 1,662,000 won. SK Hynix asserts that its shares are “undervalued” in relation to their intrinsic value. This is a notable claim considering its stock plummeted over 50% within two months due to widespread AI market concerns.
Driving this decision is SK Hynix’s commanding position in the High Bandwidth Memory (HBM) AI chip market. This core component fuels data centers globally. The company has also increased its shareholder return target for 2025–2027 to more than 50% of cumulative free cash flow, a rise from a previous cap of 50%. Further return measures, including fixed and special dividends, are anticipated to be announced in conjunction with third-quarter earnings results later this year.
Source: Bloomberg – SK Hynix Plans $28.6 Billion Share Buyback as AI Demand Drives Cash Flow