Samsung Electronics expects to return as much as 110 trillion won ($79.54 billion) to shareholders this year as strong demand for artificial intelligence (AI) chips continues to boost its earnings.
The company said on Friday that the total shareholder returns could include 30 trillion won in cash dividends during the third quarter. If Samsung reaches the 110 trillion won target, it would be more than five times its previous record of 20.3 trillion won in 2020.
Samsung Boosts Shareholder Returns
Samsung has faced growing pressure from investors to return more of its rising profits. The global AI boom has increased demand for advanced memory chips, helping Samsung and rival SK Hynix generate record earnings.
Samsung also revealed that it has already bought back 15 trillion won worth of shares for employee stock bonuses. The company’s board is expected to decide on additional shareholder payouts in January 2027. These could include cash dividends, further share buybacks and share cancellations.
Under Samsung’s 2024-2026 shareholder return policy, the company has committed to returning 50% of its free cash flow generated during the three-year period to shareholders.
Samsung Shares Rise
Samsung shares gained 3.5% on Friday, while SK Hynix shares increased 4.4%. The broader South Korean market rose 0.8%.
Analysts said Samsung’s large shareholder return plan could help support its stock price. However, some investors may have preferred a larger share buyback because buybacks can create additional demand for shares.
AI Chip Boom Drives Profits
Samsung’s strong shareholder returns come as its semiconductor business benefits from the AI boom. In the second quarter, Samsung reported a huge increase in chip profits, reaching 89 trillion won.
Samsung shares have gained about 300% over the past year, although the stock has declined from its June record as investors worry that global AI spending could eventually slow.
Samsung and SK Hynix are also expected to hold a combined $263 billion in net cash by the end of the year. This highlights the strong financial position of South Korea’s leading chipmakers as global demand for AI infrastructure continues to grow.
