Memory giant SK Hynix's mega buyback
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South Korean memory chipmaker SK Hynix plans to shower cash on shareholders in an effort to end a two-month-long share slump.
Why it matters: South Korea's stock market has become the epicenter for global AI-related volatility. SK Hynix and fellow chipmaker Samsung Electronics are the key drivers, accounting for roughly 50% of the country's benchmark KOSPI index.
The latest: Hynix said Wednesday that it would spend 40 trillion Korean won — $28.8 billion — buying back and canceling shares as it seeks to stem a selloff that has destroyed the equivalent of roughly $560 billion in market cap.
- It also hinted at more cash-return plans to come.
The bottom line: The plan to make it rain on the company's Korean shareholders boosted the stock nearly 13% in trading earlier Thursday.
- Oh, and while the buyback will be focused exclusively on the Korean shares — not the ADRs that made their debut on Nasdaq in July — it will still benefit the ADRs economically, as they represent one-tenth of a Korean share.
