Wedbush says SK hynix’s $29 billion buyback could narrow its valuation discount
SK hynix's large buyback and commitment to return over 50% of free cash flow signals strong capital discipline and confidence in AI-driven memory demand. Wedbush argues this could narrow its valuation discount versus peers, while rising memory prices and sharply improved margins reinforce the earnings and cash-flow backdrop. Recent credit-rating upgrades further support financing flexibility, though near-term trading may remain sensitive to broader AI-semi risk appetite.
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NCSKSKHYNIX2USD/USDT-7.28%
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▲ Bullish
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Wedbush analysts said SK hynix has launched a $3 billion share repurchase program and plans to return more than 50% of free cash flow to shareholders, a move they expect could help narrow the stock’s valuation discount. The analysts also said the company could deliver an additional $130 billion in shareholder returns by 2027, supported by continued gains in memory-chip prices. SK hynix’s operating margin rose by 35 percentage points to 76%.