SK Hynix unveils $28.6bn share buyback and cancellation plan | News.az

SK hynix announced a $28.6 billion share buyback plan, repurchasing 24.07 million shares by Nov. 19. The company aims to cancel all repurchased shares, citing undervaluation. SK hynix also raised its shareholder return policy to 50% or more of cumulative free cash flow from 2025 to 2027, with potential returns exceeding 200 trillion won. The move follows recent sell-offs and lack of shareholder return measures in its July earnings announcement.

SK hynix announced a 40 trillion won ($28 billion) share buyback, the largest in South Korea, starting Thursday. The company also raised its shareholder return target for 2025-2027 to over 50% of cumulative free cash flow, citing strong cash generation from AI-driven memory demand. The buyback, about 3.3% of shares, follows calls for better returns and is expected to support per-share value.

SK hynix's board approved a 40 trillion won share repurchase and cancellation plan, aiming to return over 50% of its 2025-2027 free cash flow. The company believes its stock is undervalued and has strong cash generation. The repurchase, the largest in South Korea, will run for three months starting August 20, canceling about 3.3% of its shares.

SK Hynix approved a $28.3B treasury share buyback plan, starting August 20, spanning three months. The company will buy back over 24M shares, aiming to return over 50% of free cash flow to shareholders. This follows strong AI-driven earnings and a 15% stock drop in the past month.

Asian tech and chip stocks fell, led by SoftBank (9984), Renesas (6723), and Kioxia (285A) in Japan, Samsung (005930) and SK Hynix (000660) in South Korea, and SMIC (0981) and Hua Hong (1347) in Hong Kong. U.S. chip stocks like Nvidia (NVDA), Micron (MU), and SanDisk (SNDK) also declined as bond yields rose, raising valuation concerns for AI-linked companies.

Samsung Electronics, SK hynix, and Hyundai Motor Group are accelerating U.S. investments totaling $72 billion. Samsung is expanding its Texas fab, investing $37 billion. SK hynix is building a $3.87 billion semiconductor packaging plant in Indiana. Hyundai Motor plans a $26 billion investment, including a robot production facility. These moves aim to counter U.S. trade pressure.