SK Hynix announced a 40 trillion won ($29 billion) share buyback program as the memory chipmaker seeks to stabilize its stock amid investor concerns over AI spending sustainability.
The South Korean semiconductor manufacturer will repurchase up to 24 million treasury shares between August 20 and November 19, with plans to cancel them afterward.
The buyback comes as SK Hynix shares have declined since June following a sharp rally in previous years. Investors have grown anxious about whether artificial intelligence-driven demand for memory chips will sustain current spending levels, pressuring the stock.
The $29 billion program represents a significant commitment to returning capital to shareholders and bolstering confidence in the company's outlook. By reducing the share count through cancellations, the buyback can support earnings per share metrics even if overall profits remain flat.
SK Hynix is one of the world's largest memory chipmakers, competing with Samsung and Micron Technology for market share in DRAM and NAND flash memory—components essential to AI systems, data centers, and consumer electronics.
The announcement triggered a positive market response, with SK Hynix shares rising following the news. The buyback signals management's confidence in the company's long-term value despite near-term volatility.
Memory chip makers have benefited from surging demand for AI infrastructure, but recent market weakness has raised questions about the pace of orders. The buyback addresses these concerns by demonstrating the company's willingness to deploy capital strategically during uncertain periods.
The program also reflects broader shareholder pressure on tech companies to return excess cash. As AI spending growth moderates from exceptional levels, companies are turning to buybacks to support stock performance.
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