SK Hynix embarks on $29B buyback, signals stock undervaluation

SK Hynix just announced a 40 trillion won (roughly $28.6 billion) share buyback, making it the largest treasury share cancellation ever undertaken by a Korean company. The buyback targets approximately 24.07 million shares, or about 3.3% of the company’s 730,492,365 total issued shares. Execution begins August 20 and runs through November 19, 2026. SK Hynix’s stock has fallen nearly 50% from its June 2026 peak, a decline that the company views as disconnected from its actual financial health. The buyback announcement landed just weeks after the company completed a Nasdaq listing in July 2026 that raised approximately $26.5 billion. SK Hynix pointed to its business competitiveness, cash generation capacity, and its position in the AI memory market as evidence that the stock price has drifted too far from intrinsic value. The company also committed to returning more than 50% of cumulative free cash flow generated between 2025 and 2027. That package includes buybacks, share cancellations, cash dividends, and potentially special dividends. SK Hynix shares and its American Depositary Receipts climbed 6-9% on the news. The semiconductor context SK Hynix is one of the world’s largest prod...