US-listed semiconductor stocks edged lower in premarket trading on Wednesday, extending recent losses despite positive developments from major Asian chipmakers, including SK Hynix's massive share buyback plan and reports of higher chip prices from Samsung Electronics.
SanDisk slipped 0.23% to $1,622, while Intel declined 1.73% to $95. Western Digital fell 1.01% to $491.17, AMD was down 0.61% at $481.45 and Micron Technology dropped 0.55% to $936.12. In contrast, SK Hynix ADR gained 3.86% to $161.76.
The broader US market remained subdued. Dow Jones Industrial Average futures and S&P 500 futures were little changed, while Nasdaq-100 futures dipped 0.2%.
SK Hynix announced that it will allocate at least 50% of its free cash flow generated between 2025 and 2027 towards shareholder returns. The South Korean chipmaker also plans to buy back and cancel 40 trillion won, or around $28.61 billion, worth of treasury shares.
Additional shareholder returns will be provided through dividends, with further details expected alongside the company's third-quarter earnings. The announcement came after SK Hynix shares had fallen around 10% during Korean trading amid a broader sell-off in Asian technology stocks. The stock pared some of its losses following the announcement, although it remained under pressure.
SK Hynix's ADR, however, moved higher in US premarket trading, rising 3.86%.
ALSO READ: SK Hynix Seesaws: ADRs Spike 6% Pre-Market As $29B Buyback Refuels Chip Trade Optimism
Samsung Electronics said it will invest around 240 billion won, or approximately $158 million, to establish an HVAC production line at its Gwangju operations site in South Korea. The investment is aimed at tapping into the rapidly expanding HVAC market, particularly demand for advanced cooling solutions for AI data centres. The facility will manufacture products from FläktGroup, the HVAC company acquired by Samsung last year.
Samsung shares nevertheless fell sharply in Seoul, declining more than 5% amid the broader technology sell-off. Asian technology stocks declined on Wednesday, tracking losses among US peers as a drop in global bond prices and higher yields raised concerns over inflation and valuations.
In Japan, SoftBank Group fell 5.44%, while Tokyo Electron declined 3.85%. Advantest dropped 3.93% and memory chipmaker Kioxia plunged 9.13%. South Korean semiconductor stocks also faced heavy selling pressure. SK Hynix declined 8.66% during the session, while Samsung Electronics fell 7.08% and Seoul Semiconductor dropped 4.33%.
Technology stocks have witnessed heightened volatility in recent sessions, with South Korea's semiconductor-heavy market swinging sharply between steep losses and record highs.
Elsewhere in the technology sector, Oracle fell nearly 1% in premarket trading after a Wall Street Journal report said OpenAI had disclosed second-quarter results that disappointed investors. Although OpenAI's revenue increased 18% between the first and second quarters, its losses also widened, raising concerns among investors over the cost of scaling artificial intelligence operations.
Alphabet shares were also lower in early trading, while chipmakers Marvell and Intel remained under pressure.
Oil prices climbed more than 1% on Wednesday amid reports that Iran was considering attacks on US targets in Europe, adding to geopolitical concerns in energy markets. Persistently elevated crude prices have pushed government bond yields higher across several markets, with investors increasingly concerned that higher energy costs could fuel inflation.
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