SK Hynix said Wednesday it will repurchase up to 40 trillion won, or approximately $28.3 billion, of its treasury shares over the next three months, marking one of the largest buybacks ever by a South Korean company.
The board approved the program on Aug. 20, 2026, with the buyback set to commence immediately and cover more than 24 million treasury shares. The move follows a 7% jump in SK Hynix’s New York-listed shares after the announcement.
The chipmaker’s stock has surged over 120% in 2026, though it has retraced 15% in the past month amid investor skepticism over AI-driven valuations. SK Hynix raised its shareholder return target to more than 50% of cumulative free cash flow, up from less than 50% previously.
The buyback reflects robust AI-fueled demand that has driven bumper earnings for the memory chip developer in recent quarters. The company expects tight supply conditions and elevated memory chip demand to persist in the coming years, supporting its long-term outlook.
Rival Samsung is also expected to pursue a similar buyback strategy given sustained AI-driven demand over the past year.
