TLDR
- SK Hynix will announce shareholder return measures with Q3 earnings on Wednesday.
- A Korean report says the plan may include a special dividend of about 16 trillion won ($12 billion).
- The dividend would be funded by gains from the sale of its Kioxia stake.
- SKHY opened at $137.02 on Monday, well below its 50-day average of $170.08.
- SK Hynix paused the planned U.S. listing of its Solidigm unit due to market volatility.
SK Hynix (SKHY) opened at $137.02 on Monday. That is far below its 50-day simple moving average of $170.08 and its one-year high of $199.87. The one-year low is $124.80.
The South Korean chipmaker will announce shareholder return measures on Wednesday, when it reports third-quarter results. The company confirmed the timing after a local newspaper report on Monday.
Dong-A Ilbo reported that SK Hynix is weighing a special dividend of about 16 trillion won, or roughly $12 billion. The payout would come from gains on the sale of its stake in Japanese memory maker Kioxia.
SK Hynix has not released details of that sale, which closed earlier this year. Analysts estimate the company booked large investment gains from it.
The company put about 4 trillion won into Kioxia in 2018. It joined a Bain Capital-led group of U.S., Japanese and South Korean investors at the time.
When the stock exchange asked about the report, SK Hynix said it is “reviewing various shareholder return measures.” It gave no further detail.
Pressure on memory makers to return cash
SK Hynix and Samsung Electronics have faced growing calls to return more cash. Record profits from AI memory chip demand have raised those expectations.
The pressure grew after both stocks fell from record highs set in June. Part of the drop came from worries about how long U.S. tech firms will keep spending on AI.
In August, SK Hynix said it would buy back and cancel 40 trillion won of its own stock. It also said it would put more than 50% of free cash flow from 2025 to 2027 toward shareholder returns.
Bank of America reportedly expects both SK Hynix and Samsung to lift payouts as memory demand stays firm. Another report said the consensus price target on SK Hynix’s depositary receipt rose 10.49% to $358.34.
In Seoul trading on Monday, SK Hynix stock rose 0.5%. The broader market index fell 1.3%.
Solidigm listing paused
SK Hynix said on Friday it paused a planned U.S listing for its Solidigm chip unit. The company pointed to market volatility, share price trends and concerns about a possible duplicate listing.
South Korean regulators have also looked at dual-listing rules. Some investors saw the pause as removing execution and dilution risks, though Solidigm will not raise public capital for now.
Memory stocks bounced on Friday. SK Hynix rose along with Micron and SanDisk after a tech-led selloff.
Analysts remain positive on the stock. MarketBeat lists a consensus “Buy” rating and a $253.22 price target. Four analysts rate it Strong Buy, nine rate it Buy and two rate it Hold.
Recent targets range from $200 to $320. Rosenblatt has a $320 target, Wolfe Research has $250, Needham has $220 and RBC has $200.
SK Hynix and Samsung are also upgrading memory plants in China to serve local AI customers. U.S. export limits could restrict what technology can be used there.
The company last reported earnings on August 18, with EPS of $8.48 and revenue of $51.19 billion. Analysts expect full-year EPS of 25.69, and results are due Wednesday.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
