SK Hynix Stock Rises: Korean Memory Giant Reportedly Weighs $12B Special Dividend From Kioxia Gains

• SK Hynix is reportedly considering the special dividend after booking an estimated 20 trillion won in gains from trimming its Kioxia stake.
• The chipmaker scrapped plans for a U.S. IPO of its Solidigm subsidiary.
• Retail sentiment for SKHY was ‘bullish’ late Sunday.

SK Hynix (SKHY) is considering a special dividend of 16 trillion won ($12 billion), funded by gains from its investment in Japanese memory-chip maker Kioxia Holdings, South Korea’s Dong-A Ilbo reported Monday, citing unnamed investment banking sources.

The payout would amount to about 80% of an estimated 20 trillion won in gains SK Hynix booked from its Kioxia investment in the first half of 2026. The company is expected to announce its plans alongside third-quarter earnings on Wednesday, according to the report.

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SK Hynix’s Seoul-listed shares rose marginally in Asian trading hours on Monday morning, while the U.S.-listed stock was up over 1% in overnight trading late Sunday.

SK Hynix said it was reviewing options to return money to shareholders but had not decided on a special dividend, according to a Bloomberg report, which added that the prospect of a payout has helped the stock hold up amid a broader selloff in AI-related shares.

SK Hynix’s Kioxia Bet

SK Hynix joined a Bain Capital-led consortium in 2018 to acquire Toshiba’s former memory-chip business for $18 billion. Kioxia’s value climbed following its Tokyo stock-market debut in 2024. 

While Bain Capital sold its entire stake earlier this year, SK Hynix still holds convertible bonds linked to an investment vehicle with about a 14% stake in Kioxia, according to Bloomberg.

SK Hynix Scraps NAND Unit’s US IPO

Last week, SK Hynix scrapped plans for a U.S. IPO of its Solidigm flash-memory subsidiary. In an Oct. 23 statement, the South Korean chipmaker cited capital-market conditions and share-price trends behind its move. 

The IPO had reportedly targeted a $10 billion to $15 billion raise and a valuation of up to $150 billion. The decision follows a sharp correction in U.S. and South Korean semiconductor stocks.

Retail View On SKHY

On Stocktwits, retail sentiment for SKHY dipped over the past week but was ‘bullish’ as of late Sunday.

“$SKHY Anyone who managed to top up like myself last week congratulations. We all got it at bargain basement prices,” a trader said.

Another wrote: “Yes. And they are announcing another buyback next week. $SKHY is reducing its share float by about 3% per quarter. That's better than Apple. 200 fast. 300 in 2027.”

SKHY stock closed at $137.02 on Friday and remains 8% below its Nasdaq listing price. 

Beyond SK Hynix’s report, investors will look at quarterly reports from Seagate Technology (STX) on Tuesday and Samsung Electronics on Thursday for fresh clues on the memory market. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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