Overseas Research Selection | Goldman Sachs Interprets SK Hynix Buyback Plan: Optimistic About AI Storage Cycle and Cash Return Capacity

On August 19 local time, South Korean memory chip giant SK Hynix announced the implementation of a stock buyback and cancellation plan worth 40 trillion Korean won (approximately 28.7 billion USD). Goldman Sachs subsequently released a research report stating that this move not only has the potential to boost the company's earnings per share (EPS), but also demonstrates management's confidence in future cash flow capabilities and the AI-driven memory cycle. As a result, Goldman Sachs maintains a "buy" rating on SK Hynix and sets a target price of 3.5 million Korean won. Goldman Sachs applies an average price-to-earnings ratio (P/E) valuation method for 2026 to 2027, assigning a target P/E ratio of 9.