SK Hynix Buyback Plan May Add Another $130 Billion in Shareholder Returns

SK Hynix, a leading memory chipmaker, announced plans to repurchase up to 24 million shares as part of its new stock buyback program. The move was unexpected and saw the company's shares jump by as much as 13% on the Korea Exchange.

The analyst at JPMorgan Chase & Co., Jay Kwon, estimates that SK Hynix may return a minimum of $130 billion to shareholders through next year. This would represent more than half of the company's cumulative free cash flow over 2025-2027, exceeding its previous pledge of 'up to 50%.'

Kwon believes this development will provide support for the stock after the recent selloff and expects share price sentiment to improve gradually from a medium-term horizon. He recommends investors accumulate the stock.