Shares of Samsung Electronics Co. jumped in Monday trading after the company unveiled a surprise plan to buy back about 10 trillion South Korean won ($7.19 billion) worth of shares over the next year.
Shares of the South Korean tech giant surged more than 7 percent in Seoul, after rising 7.21 percent on Friday after the company announced it had reached a preliminary agreement with its largest labor union, which went on strike in July.
Samsung last bought back shares in November 2017, according to LSEG data from Reuters.
The company said in a regulatory filing that it will buy back 3 trillion won of shares in the next three months.
The remaining 7 trillion won worth of shares will be authorized accordingly by the board of directors, which will decide on ways to enhance shareholder value, it added.
Samsung shares hit a four-year low on Nov. 15 after the company posted a disappointing third-quarter earnings outlook amid concerns over tariffs after U.S. President-elect Donald Trump won the presidential election.
The company has fallen behind rival SK Hynix in the race to provide high-bandwidth memory, or HBM, chips, a key component used by AI leader Nvidia.
HBM is a type of dynamic random access memory, commonly known as DRAM. DRAM is often used in laptops, workstations, and personal computers.
According to South Korean media, SK Hynix is the world's first chipmaker to supply Nvidia with its 5th generation HBM3E chips.
