Driven by the AI chip boom, South Korean memory chip giants Samsung Electronics and SK Hynix are expected to hold a combined net cash reserve of $263 billion by the end of this year. This figure is more than double NVIDIA's cash reserves and exceeds the total cash of the other six companies in the US "Tech Magnificent Seven" excluding NVIDIA. However, the two companies' vague statements regarding shareholder return plans in recent earnings seasons are angering investors and exacerbating downward pressure on their stock prices. SK Hynix's stock price has fallen by approximately 48% from its historical high, while Samsung's has dropped by about 37%.
Investors point out that the two companies have currently only committed to using 50% of their free cash flow for shareholder returns, far below the 100% committed by their US counterpart, Micron Technology. Retail investor platform ACT launched a campaign this week, demanding that Samsung convene an extraordinary general meeting of shareholders and initiate a stock repurchase plan of approximately $32 billion. Analysts warn that if management continues to be reluctant to commit to larger returns, the market may interpret it as a lack of internal confidence in the sustainability of AI profitability.
Samsung Electronics and SK Hynix's Cash Reserves Expected to Reach $263 Billion by Year-End, Surpassing US Stock Magnificent Seven; Investors Pressure for Share in AI Dividends
Source:华尔街见闻 · Source Link
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