JPMorgan Sees SK Hynix Returning Extra $130 Billion to Shareholders by 2027
SK Hynix is a leading supplier of high-bandwidth memory and DRAM, making it a key beneficiary of surging demand for chips used in generative AI servers. JPMorgan’s assessment that the worst of the memory downturn has passed points to stronger cash generation and underpins expectations that the South Korean chipmaker can substantially increase shareholder distributions through 2027.
JPMorgan estimates SK Hynix could commit at least an additional 180 trillion won, or about $130 billion, to share buybacks and other shareholder returns by 2027. The report sent SK Hynix shares up 12.73% in a single session, helping fuel a broad rebound across South Korean semiconductor stocks and companies tied to the artificial-intelligence supply chain.
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The history behind this eventSamsung, SK Hynix Weigh $141 Billion Shareholder Returns on AI Memory Boom
Surging demand for high-bandwidth memory, or HBM, used in artificial-intelligence accelerators has strengthened earnings and cash generation across the memory-chip industry. Samsung Electronics and SK Hynix are central to South Korea’s semiconductor sector, making their capital-allocation decisions significant for investors and the broader market. Potential payouts would also underscore how the AI infrastructure boom is translating into substantial profits for leading memory suppliers.
Samsung Electronics and SK Hynix are considering shareholder-return programs totaling more than 200 trillion won ($141.3 billion), according to a media report. The plans could combine share buybacks with special dividends, with formal announcements possible by the end of August. The companies have yet to confirm their respective contributions, implementation schedules or final terms, leaving the ultimate size and structure of the proposed payouts subject to change.
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