SK Hynix shares rebound 8% after record $28.6 billion buyback plan

SK Hynix and Samsung announced large shareholder return plans, with SK Hynix approving a $28.6B buyback and Samsung preparing a $72B return package. Micron, despite strong cash generation, has not followed suit, with minimal capital return. Micron's financials show significant cash reserves and flexibility, but structural differences and cyclical caution may delay any major shareholder returns.

SK Hynix shares rose 11% after announcing a $28.7B share buyback and cancellation plan, representing 3.3% of its total shares. The company cited undervaluation and strong cash position. It also raised its shareholder return target to over 50% of free cash flow for 2025-2027.

SK Hynix shares rose 8% after announcing a $28.6B share buyback and cancellation plan, the largest in South Korea. The company will repurchase 3.3% of outstanding shares, aiming to boost earnings per share. SK Hynix cited undervaluation and strong growth prospects, with plans to return over 50% of free cash flow from 2025-2027.

Samsung Electronics and SK Hynix plan record shareholder returns. Samsung aims for a 100 trillion won ($72 billion) program, while SK Hynix announced a 40 trillion won ($29 billion) buyback. Both companies' shares surged. The moves follow investor concerns about AI hardware spending sustainability. Samsung's returns may focus on cash dividends, while SK Hynix raised its return pledge to $170 billion for 2025-2027.

Treasury buybacks lowered bond yields, benefiting tech stocks. SK Hynix and Samsung rebounded, but U.S. chip stocks need confirmation. Moderna surged 177% on positive clinical trial results. Bitcoin neared $70,000, with Ethereum also showing strength. FOMC minutes indicated higher rates may be possible if inflation persists. Nasdaq futures were up 0.4%, S&P 500 futures up 0.15%.

South Korea's KOSPI index rose 5.89% to 6,852.58, driven by gains in SK hynix (up 12.73%) and Samsung Electronics (up 9.49%) due to expectations of increased shareholder returns. SK hynix announced a 40 trillion won share buyback program, while Samsung is reportedly planning a 100 trillion won return plan. Foreign investors bought 1.7 trillion won of shares, and U.S. Treasury yield declines boosted risk appetite.