SK Hynix may fund $12B special dividend via Kioxia sale
SK Hynix, a major player in memory chips, is thinking about handing out a $12 billion special dividend, news expected to drop with its third-quarter results on October 28.
The extra cash might come from selling its Kioxia stake, as investors keep asking for bigger payouts now that AI chip demand is booming.
SK Hynix promises massive share buyback
Even though SK Hynix and Samsung have made record profits from AI chips, their stock prices have slipped since last June's highs.
Investors want more of those gains sent back to them, so SK Hynix has already promised a massive share buyback and plans to give over half its free cash flow to shareholders between 2025 and 2027.
The company also paused plans for a US listing of its Solidigm chip unit because of market ups and downs, showing just how much pressure there is to keep investors happy.