Its shares traded at 1,676,000 won around 3 p.m., up 11.73 percent or 176,000 won from the previous session. The stock climbed as high as 1,720,000 won during intraday trading.
The sharp rebound came a day after the shares tumbled 9.75 percent to 1,500,000 won amid a broader selloff in semiconductor stocks.
After the market closed the previous day, the chipmaker said it would buy back 40 trillion won worth of its own shares over the next three months and cancel all of them to boost shareholder returns.
It also plans to return at least 50 percent of the free cash flow (FCF) it generates from 2025 to 2027 to shareholders, up from the previous plan of up to 50 percent. The money will be returned through share buybacks, cancellations and cash dividends. FCF is the cash left after a company pays for its operating and investment expenses.
Simon Coles, an analyst at global investment bank Barclays, called the buyback plan a "strong signal" and said SK hynix shares remained undervalued. He estimated that the planned shareholder returns would equal about 15 percent of the chipmaker's market value.
The investment bank maintained its positive outlook on the stock and a $300 price target for SK hynix's American depositary receipts (ADRs), implying about 93 percent upside from Tuesday's closing price of $155.62.
Barclays said SK hynix could make the large shareholder payouts while still having enough money to expand production and make new investment.
The bank expects the buyback to support SK hynix's share price. It also raised its 2027 dividend forecast to 2,500 won per share for quarterly dividends and 10,000 won for the year-end dividend.
But how SK hynix distributes those returns remains a key question. Coles said putting more money into dividends could signal confidence in its ability to generate steady cash, while share buybacks may be a more practical option.
AJP Takeaways
• SK hynix shares jumped 12.47 percent to 1,687,000 won as of 2:43 p.m. on Aug. 20, 2026, after the chipmaker announced a 40 trillion won ($28 billion) share buyback and cancellation plan.
• Barclays analyst Simon Coles called the buyback a "strong signal" and said SK hynix remained undervalued, estimating the planned shareholder returns at about 15 percent of its market capitalization.
• Barclays maintained a $300 price target for SK hynix's American depositary receipts, implying about 93 percent upside from the $155.62 price on Aug. 18, 2026.
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