A wave of positive momentum swept through US markets on August 20 as major technology stocks edged higher in premarket trading, with memory chip producers leading the charge. SK Hynix surged more than 4% at one point, while Western Digital gained over 1%, and SanDisk, Micron Technology, and Seagate Technology all traded in positive territory alongside their peers.

Across the Pacific, Japanese and South Korean equity markets closed firmly higher on the same day. South Korea's KOSPI index jumped 5.89% to close at 6,852.58 points, with SK Hynix soaring 12.73% and Samsung Electronics advancing 9.49%. During the morning session, the Korea Exchange activated its sidecar mechanism, temporarily suspending program buying in the KOSPI index to temper the rapid rally.

JPMorgan analysts highlighted that following the announcement of a 40 trillion won share buyback program, SK Hynix could deliver at least an additional $130 billion in shareholder returns by 2027. The brokerage noted that when unveiling the buyback plan, SK Hynix raised its shareholder return commitment for the 2025-2027 period to more than 50% of cumulative free cash flow, up from a previous ceiling of 50%.

This revision implies that beyond the already disclosed program, the company is poised to provide at least 180 trillion won in extra shareholder returns by 2027, equivalent to roughly 16% of its current total market capitalization. JPMorgan believes this robust return framework will help cushion the stock following recent selling pressure, suggesting that the worst may be over. Over the medium term, market sentiment toward SK Hynix is expected to improve gradually, and the firm advises investors to consider increasing their positions.