Just as the A-share market was about to close, SK hynix made a decisive move to shore up investor confidence.

In a regulatory filing on Wednesday, SK hynix announced it would repurchase up to 24 million treasury shares between August 20 and November 19, as part of a broader shareholder return program valued at 40 trillion Korean won (approximately $28.6 billion). This comes at a time when the semiconductor industry's cyclical boom is showing early signs of cooling, and investors have been eagerly awaiting such a plan as a new line of defense for the stock price.

With artificial intelligence demand continuing to strain memory chip supply, SK hynix is generating record cash flows. However, as the pace of memory chip price increases begins to slow, market attention has shifted to what happens after earnings growth peaks. In this context, share buybacks and dividend hikes are seen as potential catalysts that could drive the stock higher and provide a cushion against downside risks.

Beyond the buyback, SK hynix also signaled it is considering introducing both fixed and special dividends to expand payouts. The company has committed to returning at least 50% of its free cash flow to shareholders between 2025 and 2027.

The announcement triggered an immediate reaction: SK hynix shares surged in U.S. after-hours trading, and U.S. stock index futures also firmed up, reflecting renewed optimism across the tech sector.

This article is for informational purposes only and does not constitute investment advice. Investors should make their own decisions and bear the associated risks.