Analysts predict that SK Hynix will soon announce a buyback plan

August 5th. Boosted by overnight gains in U.S. chip manufacturers' stock prices and market speculation that SK Hynix may soon announce details of a stock buyback plan and other shareholder return plans, the company's stock price rose. As a key supplier of NVIDIA's high-bandwidth memory chips, SK Hynix rose 7.9% in Wednesday morning trading in Seoul, surpassing Samsung Electronics' 6%. Analysts and local Korean media focused on the end of the 25-day "quiet period" after the issuance of SK Hynix's American Depositary Receipts (ADR), which ended on August 4th. It is expected that the end of the quiet period will clear the way for the company to disclose its shareholder return plan.

Independent analyst Douglas Kim stated: "In my view, considering the end of the quiet period on August 4th, SK Hynix is likely to soon announce a significant shareholder return plan." He said that the plan "may include a combination of share buybacks, share cancellations, and special dividends." Several brokerages, including William Blair, initiated coverage of SK Hynix's ADR overnight and gave it a "buy" rating. (Sina Finance)