The stock performance of the three major memory chip manufacturers—Samsung Electronics Co., Ltd., SK hynix, and Micron Technology—has diverged significantly. Although Samsung Electronics Co., Ltd. and SK hynix have reported record-breaking earnings, their share prices have moved downward. In contrast, Micron Technology, which has the highest valuation among the three, has already seen its stock rebound. Industry experts believe that while the AI memory chip boom generates massive cash flows, the key factor widening the gap in stock performance lies in how each company allocates funds for shareholder returns and whether capital allocation policies are effectively implemented.
Data from the Korea Exchange on the 8th shows that from the start of this month to that date, Samsung Electronics Co., Ltd. shares fell 12%, while SK hynix dropped sharply by 17.23%. In contrast, Micron Technology shares rose 7.1% as of the 6th local time. This stock price movement creates a contrast from a valuation perspective. According to data from Hanwha Investment & Securities, as of the 6th, Micron Technology's forward 12-month price-to-earnings ratio (PER) stood at 5.7 times, higher than Samsung Electronics Co., Ltd. (3.8 times) and SK hynix (3.7 times). The strongest market performer, Micron Technology, is the most expensive among the three relative to expected earnings, while SK hynix, with the lowest PER, has experienced the largest price decline.
The market's focus is not on earnings but on each company's stance toward shareholder returns. Micron Technology took the lead in sending a clear signal. During its fiscal 2026 third-quarter earnings call on June 24, the company outlined its long-term capital return policy. Chief Financial Officer Mark Murphy projected a significant increase in free cash flow (FCF) for the fourth quarter and stated that starting December 9 (the second anniversary of the signing of the U.S. CHIPS and Science Act), shareholder returns would be expanded. More importantly, the company formally established a long-term policy: returning all excess cash to shareholders. Regardless of specific figures, the ultimate destination of capital is the key. Although Micron Technology plans to invest approximately $27 billion in large-scale equipment spending in fiscal 2026, it clearly stated that all excess cash belongs to shareholders, earning market trust.
In contrast, Samsung Electronics Co., Ltd. and SK hynix currently prioritize financial stability in their policies. Samsung Electronics Co., Ltd.'s plan allocates 50% of cumulative free cash flow from 2024 to 2026 for shareholder returns, with a stable annual regular dividend of about 9.8 trillion won. If surplus funds are abundant, the company will consider additional shareholder rewards in advance. SK hynix similarly maintains the principle of using 50% of cumulative free cash flow from 2025 to 2027 as a source for shareholder returns.
The pace of shareholder return implementation has become a key differentiator. The market is most sensitive to the differences in the rollout timing of each company's shareholder return policies. During its second-quarter earnings call, Samsung Electronics Co., Ltd. proactively disclosed that it is reviewing plans for this year's shareholder return execution, including a special dividend, and next-stage policies. Additionally, the company issued a statement to Reuters on the 5th, stating that it seeks to sustainably expand shareholder returns while maintaining a sound financial structure, and will announce detailed plans soon. Meanwhile, SK hynix, while emphasizing the possibility of raising additional returns to a "significant scale," insists on waiting until the end of the year to finalize the specific size and implementation method. Several semiconductor industry analysts at brokerages noted, "In terms of shareholder return commitments, Samsung Electronics Co., Ltd. is one step ahead of SK hynix. Samsung even mentioned the possibility of introducing a special dividend, giving investors room for imagination. SK hynix has only stayed at the level of principle-based statements about discussing additional returns, which can easily disappoint the market."
Amid growing market skepticism, SK hynix issued an announcement on the same day, stating, "The company is actively reviewing additional shareholder return plans to enhance shareholder value, and specific measures will be finalized and announced in the third quarter." At the same time, the company set a quarterly dividend of 375 won per share.
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