Samsung, SK Hynix Shareholder Return Hopes Emerge as New Catalyst for Memory Stocks

Expectations for bigger shareholder payouts from memory-chip makers including Samsung Electronics Co. and SK Hynix Inc. are emerging as a new driver for their stocks, Bloomberg reported.

SK Hynix said on Aug. 7 that it plans to unveil a detailed shareholder return policy in the third quarter, Bloomberg reported on Aug. 11. Samsung shares also climbed 4.1% the previous day as expectations grew that the company would expand shareholder returns.

Cash flow at both companies is improving sharply as AI-driven memory shortages persist. But as the pace of memory price increases slows, investor focus is shifting from earnings growth to shareholder return measures such as buybacks and dividends.

TrendForce forecasts that contract prices for commodity DRAM rose 58% to 63% in the second quarter of 2026 from the previous quarter, while gains in server DRAM prices are set to slow to 13% to 18% in the third quarter. Memory stocks typically price in a slowdown in profit growth before earnings peak. SK Hynix and Samsung shares are already down about 50% and 34%, respectively, from their June highs.

An increase in long-term supply contracts is also supporting the sustainability of shareholder returns. SK Hynix has signed long-term supply agreements with about 10 customers, while Samsung expects multiyear contract volumes to expand to 60% to 70% of planned production capacity. Micron had secured 16 long-term supply agreements as of the end of June.

Buybacks could support share prices and help draw institutional investors at a time when concerns are rising over a peak in the memory cycle, Jun Bei Liu, co-founder of Ten Cap Investment, told Bloomberg. She added that buybacks and special dividends could become regular policies for memory makers.

Fundamentals in the memory market remain solid. South Korea's exports for Aug. 1-10 rose 45% from a year earlier. Bloomberg said chipmakers are likely to keep generating strong cash flow for now as supply shortages persist even if memory price gains lose momentum.