SKHY Expected To Pursue Additional Shareholder Returns<\/p>\n
Kwon expects SK Hynix to pursue additional shareholder-return measures over the next two years, building on the company\u2019s latest treasury-share buyback and cancellation plan.<\/p>\n
He views the planned capital return as a positive for the stock and expects it to support a gradual improvement in share price sentiment. \u201cThe worst is behind us,\u201d Kwon said.<\/p>\n
The firm maintained an \u2018Overweight\u2019 rating on SK Hynix, and per a Bloomberg\u00a0report<\/a>, it expects SK Hynix to follow up with $130 billion worth of shareholder returns over the next year.<\/p>\n SKHY\u2019s Stock Buyback Program Details<\/p>\n SK Hynix announced on Wednesday that its board had approved a plan to repurchase and fully cancel 40 trillion won ($28.7 billion) of its own shares, with the program scheduled to begin August 20 and run for about three months.<\/p>\n Based on Tuesday\u2019s closing share price of 1.662 million won on the Korea Exchange, the company expects to repurchase about 24.07 million shares, representing roughly 3.3% of its total shares outstanding.<\/p>\n SK Hynix said the move accelerates its existing shareholder-return program, which covers 2025-2027. It also plans to raise its shareholder-return target from within 50% of cumulative free cash flow (FCF) to over 50% of cumulative FCF during the program period.<\/p>\n SK Hynix said shareholder returns will combine share repurchases and cancellations with cash dividends. The company is also considering fixed and special dividends, with specific details on the scale and execution of additional returns expected after board approval at the time of its third-quarter earnings release.<\/p>\n SKHY Pushes Beyond HBM With Co-Packaged Optics<\/p>\n SK Hynix and researchers from the University of Virginia, University of Illinois Urbana-Champaign, Nanyang Technological University, MIT and Yonsei University on Thursday published a roadmap for co-packaged optics (CPO) in Nature Electronics, outlining how optical interconnects could address data-movement bottlenecks as AI systems scale across thousands of GPUs and HBM stacks.<\/p>\n The paper said compute throughput has increased about threefold every two years, while interconnect bandwidth has advanced about 1.4-fold, creating a \u201cbandwidth wall.\u201d<\/p>\n CPO integrates optical transceivers closer to processors, reducing the distance high-speed electrical signals must travel and enabling optical links across chips, racks, and pods. The researchers identified targets including more than 100 terabits per second of bandwidth per node and energy consumption below 1 picojoule per bit.<\/p>\n \u201cEven if computing chips become more powerful, overall system performance cannot improve unless data movement between chips keeps pace,\u201d said University of Virginia Professor Kyusang Lee. \u201cReplacing copper interconnects, which face inherent physical limitations, with optical links is the most promising path toward future scalability.\u201d<\/p>\n What Retail Traders Think Of SKHY Stock<\/p>\n Retail sentiment on Stocktwits around SK Hynix trended in the \u2018bearish\u2019 territory at the time of writing.<\/p>\n SKHY ADR<\/a> is down 8% year-to-date. The Roundhill Memory ETF (DRAM) is up 104% over the past 12 months, while the iShares Semiconductor ETF (SOXX) is up 112%.<\/p>\n (Exchange Rate: 1 won = $0.00072)<\/p>\n Also See:\u00a0WMT Stock Falls After Q3 Guidance Misses Estimates \u2013 A Look At Some Key Highlights<\/a><\/p>\n For updates and corrections, email newsroom[at]stocktwits[dot]com.<\/p>\n
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