SK hynix's American Depositary Receipts (ADRs) jumped as much as 7.3% in Wednesday's pre-market session following the company's announcement of a 40 trillion Korean won ($29 billion) share repurchase program. The move is aimed at easing investor concerns regarding the long-term viability of artificial intelligence-related capital expenditures.

According to regulatory documents submitted on Wednesday, the memory chip maker stated it plans to buy back and cancel up to 24 million treasury shares during the period starting Thursday and running through November 19. This strategic initiative underscores the company's confidence in its financial position and commitment to enhancing shareholder value amid ongoing market volatility in the tech sector.

The substantial buyback, one of the largest in the company's history, comes at a time when investors have been increasingly questioning whether the massive spending on AI infrastructure will deliver sustainable returns. By reducing the share count and retiring the repurchased stock, SK hynix aims to bolster earnings per share and signal its belief in the long-term growth prospects of the AI-driven memory market.

Market analysts view this decisive action as a positive catalyst for the stock, potentially setting a precedent for other major semiconductor players to follow suit in addressing shareholder sentiment. The pre-market surge reflects renewed investor optimism, with the ADR price reaching levels not seen in recent trading sessions.