India, Aug. 19 -- SK Hynix said on Wednesday that it will buy back and cancel treasury shares worth 40 trillion won, or $28.61 billion. The South Korean chipmaker also said it will use more than 50% of its free cash flow from 2025 to 2027 to give more money back to shareholders.

SK Hynix shares fell nearly 10% on Wednesday before recovering some losses in post-market trading. The shares had reached a record high in June but have fallen since then. Investors have become worried about whether U.S. technology companies will continue spending heavily on artificial intelligence, according to Reuters.

SK Hynix has benefited strongly from the AI boom because it makes memory chips used in AI systems. The company is a major supplier of high-band...