SK Hynix Moves to Calm Market With $29 Billion Share Buyback
TL;DR
SK Hynix Inc. unveiled plans to buy back 40 trillion won ($29 billion) of its own shares, moving to calm investors worried about the durability of AI spending.
Nauti's Take
A 29 billion dollar buyback is a strong signal that SK Hynix considers its own HBM order book durable, and it gives the share price a short term advantage. The risk is that money going into own shares is money not going into capacity, and capacity is what decides the next phase of the memory cycle.
For suppliers and buyers this is a reason to lock in 2027 delivery commitments early.
Sources