SK Hynix shares rallied after US chip stocks rose and speculation the company
may soon unveil a share buyback and other shareholder-return measures. As a key
supplier of high-bandwidth memory for NVIDIA, SK Hynix jumped as much as 7.9% in
Seoul on Wednesday morning, outpacing Samsung Electronics (+~6%). Market
attention centered on a 25-trading-day quiet period after the company’s ADR
issuance that expired on Aug. 4; market participants say the expiry removes a
key barrier to disclosing shareholder-return plans. Independent analyst Douglas
Kim said SK Hynix is likely to announce a major shareholder-return package soon,
potentially including buybacks, share cancellations and a special dividend.
Brokers including William Blair initiated ADR coverage overnight with Buy
ratings.
