SK Hynix stock was rising on Wednesday after the memory-chip maker said it would spend tens of billions of dollars buying back its own shares, which could soothe investors' worries about the AI boom fizzling out.

The South Korean company's American depositary receipts jumped 3.9% to $161.67 ahead of the U.S. open. Micron shares were up 0.7%, while memory storage company Sandisk rose 1.6%. Futures tracking the S&P 500 were trading flat.

SK Hynix said in a press release that its board had approved a plan to repurchase and fully cancel 40 trillion won ($29 billion) worth of shares over the three months starting Aug. 20.

The company also said it would return more than 50% of free cash flow to shareholders, having previously targeted within the range of 50%.

SK Hynix said it was making the move because it believed its value was "not fully reflected in its current stock price."

The company raised $26.5 billion when it issued its ADRs last month, but the U.S. shares have struggled since then, sliding more than 8% through Tuesday's close.

The move lower has come as investors question how long the AI spending boom, which has triggered a surge in demand for memory chips, will last.

The buyback could ease some of those worries, by signaling to the market that management believes the stock is undervalued. Canceling shares could also help stabilize the stock, which has been volatile.