SK hynix Inc. (NASDAQ: SKHY) shares rose 4.25% to $162.80 on Thursday, extending gains from Wednesday’s premarket rally. The upward momentum follows the company’s announcement of a record 40 trillion won ($29 billion) share repurchase and cancellation program, the largest treasury share cancellation in South Korean listed company history.

The Board of Directors ratified the plan on August 19, 2026, citing an assessment that the company’s intrinsic value is underrepresented in its current stock price. The repurchase program is scheduled to run for approximately three months, starting August 20 and ending November 19. Based on the closing stock price of 1,662,000 won on August 18, the buyback represents approximately 24.07 million shares, or about 3.3% of the total issued shares (730,492,365). All repurchased shares will be cancelled upon completion, automatically increasing earnings per share and elevating the proportional ownership stake held by existing investors.

Shareholder Return Framework

SK hynix expanded its shareholder return target from "within 50%" to "over 50%" of cumulative Free Cash Flow (FCF) generated during the 2025-2027 program period. This initiative accelerates the execution of its existing shareholder return program ahead of schedule. The company plans to execute returns through a dual-track approach:

• Parallel execution of share repurchases/cancellations alongside cash dividends.
• Consideration of fixed dividends and special dividends to expand payouts.

Specific details regarding the scale and execution of additional returns will be announced following Board approval at the time of the third-quarter earnings release. This expansion follows the company’s $26.5 billion U.S. listing last month and comes amid mounting investor pressure on chipmakers like SK hynix and Samsung Electronics to distribute excess profits generated by the artificial intelligence boom.

Market Context and Technical Levels

SK hynix emphasized that its stock price remains undervalued, stating that its intrinsic value—underpinned by business competitiveness, robust cash generation capability, and mid-to-long-term growth potential—is not fully reflected in current prices. Peers across the memory sector are also turning to buybacks, with SanDisk Corp. adding $14 billion to its buyback program and Micron Technology Inc. nearing the expiration of CHIPS Act restrictions.

Technically, SKHY is trading well above its short-term trend gauges, sitting about 9.3% above the 20-day SMA ($149.33) and above the 20-day EMA ($154.50), signaling buyers are controlling the near-term tape. The Relative Strength Index (RSI) is neutral at 54.23, supporting continuation if price holds trend support without appearing overbought.

• Key Resistance: $194.80 — 52-week high zone marking the top of the current range.
• Key Support: $149.33 — 20-day SMA area, a nearby trend level bulls often defend on dips.

Since its July listing, SKHY ADR shares were 8.46% lower before recovering 7% in after-hours trading following the initial buyback news. On the primary Korean listing, shares fell 9.75% in Seoul trading on Wednesday but have risen 130.41% year-to-date. Despite the rebound, concerns about AI spending have recently pressured memory stocks. Higher bond yields have also weighed on technology valuations, with portfolio managers noting that interest rates remain a bigger driver for memory stocks than temporary cushions from buybacks.

Analyst Outlook

SK hynix carries a Buy consensus rating with an average price forecast of $245.50. Forecasts range from $200 to $320. Wolfe Research and RBC Capital initiated coverage with Outperform ratings and $200 price forecasts on August 4. Cantor Fitzgerald started coverage with an Overweight rating and a $300 price forecast the same day. SK hynix has a Growth score of 98.26 and a Value score of 59.49 on the Benzinga Edge scorecard, pointing to strong growth characteristics but a more neutral valuation profile.

What the Numbers Show

As of the end of the second quarter of 2026, SK hynix reported a net cash position of approximately 69 trillion won. This liquidity buffer supports the immediate execution of the 40 trillion won buyback while maintaining financial stability. The decision to accelerate returns reflects management’s confidence in sustained cash generation capabilities amid leadership in the AI memory market as the primary supplier to Nvidia Corp. The buyback amount represents approximately 58% of the company's disclosed net cash position, indicating a significant deployment of liquidity while retaining a substantial buffer.

Fortrade has added SK Hynix to its trading platform, enabling clients to trade the South Korean memory chipmaker as a share CFD. The addition follows the company’s recent Nasdaq debut, which raised approximately $26.5 billion in one of the largest foreign listings in US market history.

The South Korean firm priced its American Depositary Receipts at $149 each in July. The offering was reported to be oversubscribed by roughly seven times. Shares now trade on the Nasdaq Global Select Market under the ticker SKHY, providing a US listing alongside its existing presence on the Korea Exchange.

AI Infrastructure Demand

Chris Warburton, CEO of Fortrade, stated that the instrument addition reflects sustained client interest in the artificial intelligence supply chain. He noted that SK Hynix sits at the center of the infrastructure powering the AI buildout.

"Adding it to our platform means clients can access that story directly, alongside the broader range of technology names we already offer," Warburton said.

SK Hynix holds a 56.4% share of the global market for high-bandwidth memory (HBM), according to its regulatory filings. These specialized chips are critical for powering AI accelerators. The company is a primary memory supplier to Nvidia’s AI hardware and has expanded this relationship through a multi-year technology partnership focused on next-generation memory for AI data centers.

What the Numbers Show

SK Hynix commands more than half of the global high-bandwidth memory market with a 56.4% share. This dominant position in a niche but critical component for AI accelerators underpins the rationale for its inclusion as a tradable CFD instrument, linking market share leadership directly to investor accessibility.

Platform Access and Risk

Warburton emphasized that instrument additions are guided by where client interest is concentrated. He identified AI memory as one of the most consistent areas of demand this year. Making SK Hynix available as a CFD allows traders to respond to developments in the sector using their existing portfolio platforms.

Fortrade provides access to SK Hynix alongside its existing range of technology and AI-related instruments via its proprietary Fortrader platform and MetaTrader 4. The company operates through multiple regulated entities worldwide, including one authorized by the UK Financial Conduct Authority.

As with all leveraged products, trading share CFDs carries a high level of risk. Clients are advised to ensure they understand this risk before opening a position.