A reported 90 trillion won buyback plan and optimism around AI-driven chip demand sent Samsung shares sharply higher, helping the company reclaim the top spot by market value in South Korea.
Samsung Electronics is preparing a share repurchase programme worth roughly 90 trillion won ($58.6 billion), according to a Yonhap News Agency report, a move that helped lift the company’s shares more than 6% on Wednesday.
The report, which cited unnamed industry sources, said the South Korean technology giant could unveil details of the buyback plan in the near future. Samsung did not immediately comment on the report.
The potential buyback follows a wage agreement reached last month between Samsung’s management and labour union. Under the deal, the company is expected to allocate around 10.5% of its annual operating profit to provide stock-based bonuses for employees in its semiconductor division.
The compensation structure allows workers to sell one-third of the shares they receive immediately, while the remaining portions will become eligible for sale in stages over the following two years. The arrangement has drawn attention over concerns that it could widen compensation disparities within the company.
Samsung may also need to acquire additional shares to support its Performance Stock Unit programme, an incentive scheme introduced last year to tie employee rewards more closely to the company’s long-term share performance.
Investor sentiment was further supported by expectations of strong earnings growth for South Korea’s leading memory-chip manufacturers. Samsung and rival SK Hynix are projected to benefit from sustained demand for memory chips as artificial intelligence adoption drives large-scale investments in data centres worldwide.
The AI boom has contributed to tight supply conditions in the memory market, boosting chip prices and improving profitability for manufacturers. Analysts expect both Samsung and SK Hynix to deliver record earnings over the next two years as demand for AI-related infrastructure continues to expand.
Samsung’s stock rose 6.3% during trading, outpacing SK Hynix’s 1.6% gain and allowing the company to regain its position as South Korea’s most valuable listed firm by common-share market capitalization.
