Key Takeaways:
- Samsung plans shareholder return exceeding 100 trillion won, about $72 billion.
- The program includes a special dividend and 50% of free cash flow.
- Shares rose over 9%, lifting South Korea's Kospi benchmark 6.1%.
Back
Samsung plans $72 billion shareholder return as AI chip profits surge
Samsung Electronics plans a shareholder return exceeding 100 trillion won, about $72 billion, sending its shares up more than 9 percent.
"We will soon share a plan to find the optimal balance between maximizing shareholder value and reinvestment for future growth while maximizing shareholder returns," Chief Financial Officer Park Sooncheol said during the company's July earnings call.
The board will review the program at a meeting at the end of August, MoneyToday reported, citing unidentified industry officials. The package includes a special dividend and commits 50 percent of free cash flow to shareholder returns, up from the company's current policy. Samsung's regular annual dividend has held near 9.8 trillion won.
The plan follows rival SK Hynix's record 40 trillion won, about $29 billion, buyback announced Wednesday, and shows the chipmakers' confidence in funding heavy AI-driven investment while rewarding investors. Samsung shares gained as much as 10.3 percent, while SK Hynix rose 14.7 percent, helping South Korea's Kospi benchmark rebound 6.1 percent after the prior session's technology selloff.
Demand from AI servers and graphics processing units has lifted sales of high-end memory chips, driving record profits across the sector. Samsung's GDRs rose 5.9 percent in London.
Citigroup said SK Hynix's buyback should serve as a meaningful floor for the share price, providing tangible downside support, and represents management's conviction in the mid-to-long-term memory outlook. JPMorgan estimated SK Hynix could eventually return at least $130 billion to investors beyond the current program.
Samsung declined to comment on the reported plan, pointing to the CFO's earlier remarks.
The program shows management expects AI-driven memory demand to persist, and the board decision at the end of August will test whether Samsung matches SK Hynix's payout scale. Investors will watch for the final terms, including the special dividend amount and execution timeline.
This article is for informational purposes only and does not constitute investment advice.
[1] Samsung GDRs rise 5.9% as record $72 billion shareholder return plan lifts shares[2] Samsung plans $72B shareholder return, boosting...[3] Samsung planning shareholder return of $72 billion, report says[4] Samsung Plans $72 Billion Shareholder Return as SK Hynix Raises Stakes[5] Samsung Electroncis to announce more than $72 billion shareholder return programme, media reports - The Economic Times
