photo | Future publications | Getty Images SK Hynix shares rose more than 12% in Seoul on Thursday after the company announced a massive share buyback. The company said it is accelerating its 40 trillion won ($28.7 billion) share buyback and write-off program as it seeks an expansion of shareholder returns to more than 50% of cumulative free cash flow generated between 2025 and 2027. “We believe the initiative is expected to serve as a significant floor for the stock price, providing tangible downside support in the near term,” said Peter Lee, an analyst at Citi. The buyback also reflects SK Hynix’s confidence in its medium and long-term growth prospects despite current headwinds in the memory sector, Lee added. The news comes after the company said earlier this month that it would invest 54 trillion Korean won to build new memory chip manufacturing plants, amid growing demand for components that are crucial for artificial intelligence. Meanwhile, other tech stocks in Asia also rose, recovering from the previous day’s losses. Market sentiment was supported by gains in US stocks, which snapped a three-day losing streak after longer-term US Treasury yields retreated from multi-year highs. In South Korea, Samsung Electronics gained 8.69%, while Kakao rose 4.41%. In Japan, SoftBank Group advanced 3.79%, while Nintendo rose more than 3%. Rakuten added 2.39%. Tech stocks have seen increased volatility in recent sessions, with the South Korean semiconductor market swinging between sharp losses and gains. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
