SK Hynix buyback: South Korean chipmaker announces $29 billion share repurchase plan; stock jumps 5% on Nasdaq

South Korean chipmaking company, SK Hynix on Wednesday, August 19, announced a $29 billion (40 trillion won) share repurchase and cancellation plan as the firm aims to deliver enhanced value to its shareholders amid concerns over AI spendings in the market.

Shares of SK Hynix on KOSPI ended 9.75% lower at 1,500,000 Korean won after the trading session on Wednesday, in comparison to 1,662,000 Korean won at the previous equity market close, according to MarketWatch data.

The chipmaking company announced its share repurchase update after the Asian market operating hours on Wednesday, August 19, 2027.

Due to the buyback update, SK Hynix ADR shares on Wall Street were trading more than 6% higher during the pre-market hours at around $163.98 apiece, indicating a higher opening on Wednesday’s trading session.

After the opening bell, shares of SK Hynix ADR surged 5.25% to its early market high of $163.80 apiece during the trading session on August 19.

SK Hynix’s buyback plans comes at a time amid rising pressure from investors to deliver more returns via dividends or repurchase plan, while concerns still remain over the spendings in the artificial intelligence (AI) chipmaking.

SK Hynix buyback plan details

As per the official announcement, SK Hynix’s board of directors approved the company’s share repurchase and cancellation move along with its plans to allocate more than 50% of the free cash flow generated between 2025 and 2027 to power shareholders' returns.

The chipmaking company is estimated to complete its share repurchase plan in the next three months starting from August 20, 2026.

“The repurchase period is scheduled to run for approximately three months starting August 20, with all repurchased shares set to be cancelled upon completion of the acquisition,” the company said in its official filing.

Based on the closing price prior to the company’s board meeting, the buyback represents approximately 24.07 million shares, or about 3.3% of total issued shares of SK Hynix on the stock market.

This move marks the largest treasury share cancellation ever conducted by a South Korean listed company, as the management focuses on keeping the targets on track while maintaining a stable financial structure and deliver sustained shareholder value.

Increase in allocations

Along with the buyback proposal, SK Hynix’s board of directors also announced that the chipmaking company will now allocate more than 50% of its free cash flow generated between the years 2025 and 2027 to improve shareholder returns.

“SK Hynix announced plans to pursue an expansion of its total shareholder return target from the previous ‘within 50% of cumulative FCF’ to ‘over 50% of cumulative FCF,” the company said in its filing.

Under the updated framework, the company will deliver shareholder returns via a dual-track approach running share repurchases/cancellations alongside cash dividends, while options to expand payouts — including the existing fixed dividends and special dividends — are also under consideration.

SK Hynix ADR shares on Wall Street

Since SK Hynix ADR shares made their Wall Street debut on July 10, 2026, the company’s stock has lost more than 7%, but has gained nearly 3% in the last one-month period, according to Nasdaq data.

The company’s stock has risen 3.4% over the last five market sessions, as per the exchange data.

So far, SK Hynix ADR shares have surged to an all-time high of $194.80 apiece on the US market, while the record low level was at $124.80 per share.

Although the demand for the company’s chips has only intensified in the market, investors have had concerns about valuation.

However, SK Hynix’s management remains confident that the company’s ‘intrinsic value’ is represented by the business competitiveness, cash generation capability, and mid-to-long-term growth potential amid heightened demand.