SK Hynix, Nvidia and Micron send one clear message to investors with their stocks off the highs

Yahoo Finance ·

SK Hynix, Nvidia and Micron send one clear message to investors with their stocks off the highs Brian Sozzi · Executive Editor Wed, October 28, 2026 at 5:37 AM EDT 2 min read SKHY +1.92% MU +2.77% NVDA +0.90% Some of the biggest players in the AI trade are sending a clear message to investors who have watched their stock prices fall off record highs. That message is that the sell-offs are unwarranted, and they will use stock buybacks to boost shareholder returns. After reporting a sixth straight quarter of record sales and profits on Wednesday, SK Hynix ( SKHY ) said it would repurchase 30 trillion won (about $22 billion) of its stock this year. This follows a 40 trillion won buyback program announced in August. SK Hynix shares rose 7% in pre-market trading. They had fallen 24% in the month before the earnings release. With its stock down about 14% in the past month, Micron ( MU ) is also planning to be a big purchaser of its stock soon. The memory chip giant said in its 10-K filing earlier this month that its board authorized discretionary share repurchases of up to $35.16 billion. This marks the largest buyback ceiling in the company's history. Micron is expected to begin buying back its stock after Dec. 9, when restrictions related to the Chips Act lift. And the king of AI chips Nvidia ( NVDA ) isn't standing idly by on the buyback front. Its stock is down 3% in the past month and has traded sideways for six months. In late September, Nvidia issued a stunning new $150 billion stock buyback plan, the largest share repurchase authorization increase in history. It brings the company's total buyback authorization to $235 billion. "We believe the expanded buyback reinforces NVIDIA's view that strong AI-driven free cash flow growth can support both strategic investments and substantial shareholder returns," Citi analyst Atif Malik said. Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show, the ' Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team.

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AI core semiconductor companies such as SK Hynix, NVIDIA, and Micron have announced large-scale share buybacks amidst declining stock prices, clearly demonstrating their commitment to shareholder returns. SK Hynix announced a 30 trillion won share buyback, while Micron and NVIDIA revealed record plans of $35.16 billion and $150 billion, respectively. This massive share buyback is interpreted as a strategic move to judge recent stock price corrections as excessive and support the downside.

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DYAX 전담 분석

The successive large-scale share buybacks by leaders in the AI semiconductor sector are a strong signal simultaneously showing solid cash generation capacity and the will to defend stock prices. Although they experienced corrections from their peaks over the past month—such as SK Hynix dropping 24% and Micron 14%—the 30 trillion won and $35.16 billion buybacks are expected to act as a core driving force supporting the valuation floor.

In a future bullish scenario, stock prices could rebound driven by abundant free cash flow (FCF) and sustained AI demand, but in a bearish scenario, the effect of buybacks could be limited if macroeconomic uncertainties or concerns over a semiconductor industry slowdown resurface. Investors should closely monitor the actual execution timing and earnings momentum of each company.

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