SK Hynix shares surge over 12% in Seoul after announcing massive stock buyback

JUST IN: SK Hynix shares surge more than 12% in Seoul after the chipmaker announces a massive stock buyback.

SK Hynix just jumped more than twelve percent in a single Seoul session.

The trigger, the chipmaker is fast-tracking a forty trillion won buyback, that's nearly twenty nine billion dollars of its own shares getting repurchased and cancelled. And it's promising to hand shareholders more than half of all the free cash it generates through 2027. Citi's analyst called it a floor under the stock, which is polite analyst speak for the company just told shorts to go home.

And remember, this is the same firm that said two weeks ago it's spending fifty four trillion won on new memory plants for the AI boom. So it's building factories and buying back stock at the same time. That's a company that thinks the cash keeps coming.

The whole neighbourhood rallied with it. Samsung up nearly nine percent, SoftBank and Nintendo climbing in Tokyo. When the memory maker for the AI age says it's cheap, Asia listens.

This is Dave King, reporting for HIT.

Source Read the original reporting at cnbc.com