Samsung, SK hynix Moved in Tandem 8 of Every 10 Days This Year

For much of this year, Samsung Electronics and SK hynix, both major memory chip manufacturers, saw their stock prices track closely. This convergence reflected a shared benefit from increased memory demand driven by artificial intelligence, with broad expectations for an industry recovery steering their share prices. However, this pattern broke following their recent third-quarter earnings announcements, as market focus shifted to how reported profits would translate into actual returns for shareholders.

SK hynix unveiled an additional 60 trillion won ($41.9 billion) shareholder return program, planning to return about 100 trillion won annually through cash dividends and significant share purchases and cancellations. The company's decision to scrap plans for a Solidigm subsidiary listing also eased concerns about potential dilution of shareholder value. Furthermore, SK hynix reported robust customer demand for high-bandwidth memory (HBM), a specialized memory crucial for AI applications, and DRAM, with output effectively sold out through 2029.

In contrast, Samsung Electronics outlined shareholder returns of up to 110 trillion won, including cash dividends, but indicated that final details would be set at a board meeting in late January. This approach fell short of investor expectations for a more concrete and immediate execution plan, leading to a less favorable market reaction despite solid earnings. The differing market responses highlight a shift in investor priorities, where the timing and clear execution of buybacks are now as critical as the overall size of announced returns.