SK Hynix rises after announcing 40 trillion won buyback plan

SK Hynix Inc. ’s (NASDAQ: SKHY ) continued its upward momentum from Wednesday.

The rally follows the South Korean memory chipmaker’s announcement of plans to buy back and cancel 40 trillion won ($29 billion) worth of its treasury stock.

The Nasdaq is down 0.65% while the S&P 500 has shed 0.43% and Technology is slipping 0.12%. • SK Hynix stock is among today’s top performers.

Why is SKHY stock surging? Mechanics of Share Cancellations Treasury shares represent equity stock that a company repurchases from open market shareholders and holds in its treasury.

When SK Hynix repurchases and permanently cancels these shares between Thursday and Nov.

19, the reduced share supply automatically elevates earnings per share and increases proportional ownership for existing investors.

Read Also: A 10-Year Treasury Bond Now Pays More Than 118 Of America's Biggest Companies Updated Cash Flow Commitments In a regulatory filing, the primary memory chip supplier to NVIDIA Corp (NASDAQ: NVDA ) pledged to allocate more than 50% of its cumulative free cash flow from 2025 to 2027 toward shareholder returns.

This expands its previous framework, which capped returns within 50% of cumulative cash flow.

Meanwhile, sector peer SanDisk Corp (NASDAQ: SNDK ) added $14 billion to its buyback program, while Micron Technology Inc (NASDAQ: MU ) approaches the expiration of CHIPS Act restrictions.

SKHY’s Key Technical Levels to Watch SK Hynix is trading well above its short-term trend gauges, sitting about 9.3% above the 20-day SMA ($149.33) and also above the 20-day EMA ($154.50), which typically signals buyers are still controlling the near-term tape.

From a longer-term view, the stock is up 7.19% over the past 12 months, but it’s also been working through a choppier stretch after key turning points in July (swing low and 52-week low) and a swing high in August.

Momentum is best framed through RSI, which is neutral at 54.23 — enough to support continuation if price holds trend support, but not so stretched that it screams "overbought." Key Resistance: $194.80 — 52-week high zone that marks the top of the current range.

Key Support: $149.33 — 20-day SMA area, a nearby trend level bulls often try to defend on dips.

SKHY Stock Price Activity: SK Hynix shares were up 4.25% at $162.80 at the time of publication on Thursday, according to Pro data.

Read Also: Micron Unveils $10 Billion Research Labs To Advance Memory and AI Photo Courtesy: JHVEPhoto on Shutterstock.com