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SK Hynix Announces 9 Billion Share Buyback to Calm AI Spending Worries

SK Hynix announced Wednesday it will buy back and cancel 40 trillion won ($28.61 billion) worth of treasury shares, allocating more than 50 percent of free cash flow generated between 2025 and 2027 to shareholder returns. The buyback, to be executed between August 20 and November 19, represents roughly 24 million shares. The company also said it would pursue an expansion of its total shareholder return target from the previous "within 50 percent of cumulative FCF" to "over 50 percent of cumulat

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SK Hynix Announces 9 Billion Share Buyback to Calm AI Spending Worries

SK Hynix announced Wednesday it will buy back and cancel 40 trillion won ($28.61 billion) worth of treasury shares, allocating more than 50 percent of free cash flow generated between 2025 and 2027 to shareholder returns.

The buyback, to be executed between August 20 and November 19, represents roughly 24 million shares. The company also said it would pursue an expansion of its total shareholder return target from the previous "within 50 percent of cumulative FCF" to "over 50 percent of cumulative FCF" through share repurchases, cancellations, and dividends. Additional payout options, including special dividends, are under consideration, with details expected alongside third-quarter earnings in late October.

The move comes amid growing investor pressure on SK Hynix and Samsung Electronics to return excess cash after both chipmakers reported record profits driven by booming demand for AI memory chips, particularly high-bandwidth memory (HBM) supplied to Nvidia and Google. SK Hynix shares had declined in recent weeks amid concerns about the durability of AI spending, despite the company's dominant position in the HBM market.

SK Hynix said its "intrinsic value — underpinned by its business competitiveness, robust cash generation capability, and mid-to-long-term growth potential — is not fully reflected in its current stock price." The buyback follows the company's $26.5 billion U.S. ADR listing completed in July, which was more than seven times oversubscribed.

Sources

  • Reuters, "SK Hynix to buy back, cancel $29 billion worth of treasury shares," August 19, 2026
  • Bloomberg, "SK Hynix Announces $28.6 Billion Share Buyback on AI Boom," August 19, 2026
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