Samsung DX hits first quarterly loss on chip inflation

Samsung plans to return 55.6-67.9 billion euros to shareholders by 2026, including 18.5 billion euros in Q3 dividends. The move follows SK Hynix's buyback plan and aims to strengthen Samsung's AI-driven market position. Samsung's share price has risen 135% this year.

Samsung Electronics plans to return 90-110 trillion won to shareholders by 2026, including 30 trillion won in cash dividends this quarter and a 15 trillion won treasury share purchase. The company aims for 120-140 trillion won in total returns from 2024-2026, using 50% of free cash flow. Details will be finalized in October and January 2027.

Samsung Electronics and SK Hynix announced large-scale shareholder returns, driving investor interest in semiconductor stocks. Samsung plans $90B-$110B in returns by 2026, while SK Hynix will buy back $40B in shares. ETFs tracking these companies saw high trading volumes and returns, with Samsung-related ETFs leading. The global semiconductor market remains strong due to AI demand, with NVIDIA reportedly raising prices due to memory chip shortages.

Samsung Electronics approved a 90-110 trillion won ($64.9-79.4B) shareholder return plan, including 30 trillion won in cash dividends. Shares initially surged but closed lower, falling short of investor expectations. Analysts note the plan is below recent estimates and lacks a specific buyback plan. Comparisons to rivals' return policies and potential market impacts were discussed.

SK hynix (000660.KS) launched a 40 trillion won ($28.8 billion) share buyback, significantly impacting South Korea's KOSPI. The company bought 1.2243 trillion won worth of shares in two days, driving a surge in 'other corporations' net buying. Despite selling by retail investors, foreigners, and institutions, the KOSPI rose 0.88% on the 21st. Samsung Electronics (005930.KS) also announced a 15 trillion won buyback, potentially further supporting the index.

Samsung Electronics' (005930.KS) non-memory division is expected to return to profit in Q3 2023, the first in 3 years. The Exynos 2700 AP outperformed Qualcomm's Snapdragon 8 Elite Gen 6 in tests. Increased use of Exynos chips in Galaxy smartphones could lower costs and boost foundry division's internal orders. Samsung has secured orders from Tesla, Apple, and Broadcom, and raised foundry service prices by up to 15%.