Investors press Samsung and SK Hynix over AI-chip profits
Investors are calling out Samsung and SK Hynix for not sharing enough of their record AI chip profits.
By year-end 2026, the two Korean tech giants are expected to have a combined $263 billion in net cash, over twice what NVIDIA holds.
Yet, they only return one-half of their free cash flow to shareholders, while rivals like Micron give back all of it.
Korea discount hits Samsung, SK Hynix
Because Samsung and SK Hynix lag behind companies like Apple and TSMC in rewarding investors, their stocks are seen as undervalued, a problem known as the "Korea discount."
With share prices down since last June, investors are pushing for bigger buybacks and better use of cash.
Samsung says it is discussing its shareholder returns policy for this year and beyond and aims to share details "very soon," while SK Hynix said it would share plans within this year.