#SKHynixLargestBuybackEver

Yes, I view this fundamentally as a bullish development; however, I wouldn't chase the initial rally.

SK hynix is ​​launching a share buyback and cancellation program worth 40 trillion Won—representing approximately 3.3% of its shares—while raising its shareholder return target for the 2025–2027 period to over 50% of cumulative free cash flow. Management is signaling clearly that they believe the stock is undervalued.

My preferred price ranges

Assuming the recent sell-off pulls SK hynix shares back toward the 1.5 million Won level:

1.35 million – 1.50 million Won: Best risk/reward ratio; my preferred zone for accumulating shares.

1.50 million – 1.65 million Won: Attractive; I would be willing to build a position gradually.

1.65 million – 1.80 million Won: Reasonable; though I would buy in smaller quantities, as the buyback news might already be priced in.

1.85 million – 2.0 million Won: I would wait for a pullback rather than chasing the price.

The key point is that this isn't just a token buyback: SK hynix plans to cancel the repurchased shares, thereby reducing the total share count; furthermore, the company held approximately 69 trillion Won in net cash at the end of the second quarter. The company also posted record-breaking second-quarter operating profit of 60.5 trillion Won, with an operating margin of 76%.

My preferred zone: 1.4 million – 1.6 million Won. I view this as the sweet spot between capitalizing on management's valuation signal and hedging against a potential new market shock—or shift in sentiment—regarding the AI ​​memory and semiconductor sector.

The primary risk is that the market is questioning the sustainability of the current extraordinary gains in the AI ​​memory space. Therefore, I would prefer to buy gradually rather than entering the position all at once.
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