SK Hynix announced it would buy back and cancel more than $28.6 billion of its shares, as the world’s second-biggest memory chipmaker acted to boost investor confidence after its shares sank Wednesday.
Hynix raised more than $26 billion last month, in the largest share sale by a non-US company, as demand for its memory chips soars during the AI boom.
However, persistent volatility in its stock price points to enduring investor concerns about the sustainability of the debt-fueled AI buildout.
Google on Wednesday reached an AI chip deal that would allow it to buy $12 billion in shares of semiconductor firm Marvell, as the hyperscaler’s memory demands grow, raising further concerns among analysts about circularity in AI financing.