Shares in South Korean chipmaker SK Hynix rallied on Monday, defying a broader selloff in AI-related stocks amid reports that the company is considering a $12bn special dividend following substantial gains on its investment in Japanese memory chipmaker Kioxia Holdings, according to Bloomberg.

SK Hynix is reportedly planning to distribute approximately 16tn won ($12bn) to shareholders, representing the bulk of a 20tn won gain recorded on its Kioxia stake during the first half of the year. South Korean newspaper DongA Ilbo reported that the payout could be announced alongside third-quarter earnings on Wednesday, potentially in instalments.

The company said it was reviewing shareholder return options but had not made a decision on a special dividend.

SK Hynix shares climbed as much as 3% in Seoul before paring gains, while rival Samsung Electronics fell as much as 1.9% and Kioxia declined 3.7%.

The divergence comes amid growing investor concerns over the sustainability of the AI investment boom, with rising debt levels among data centre operators and escalating capital expenditure commitments prompting a reduction in exposure to AI-linked equities.

Specialist cloud providers, including Australia's Firmus Grid and Britain's Nscale, have shelved or delayed planned initial public offerings amid deteriorating sentiment.

Kim Namho, a fund manager at Timefolio Asset Management, said the prospect of a dividend, alongside SK Hynix's decision to withdraw the planned US listing of its Solidigm subsidiary, was supporting the stock in the near term but was unlikely to drive a sustained rally.

Despite mounting scepticism over AI infrastructure spending, major memory manufacturers including SK Hynix, Samsung, Micron Technology and Kioxia continue to expand production capacity, supported by multiyear supply agreements with technology groups including Meta and Amazon.

SK Hynix gained its exposure to Kioxia through a Bain Capital-led consortium that acquired Toshiba's memory chip operations for $18bn in 2018. Kioxia's valuation has risen sharply since its Tokyo listing in 2024, generating significant gains for its investors.

Bain exited its remaining holding earlier this year, while SK Hynix continues to hold convertible bonds representing approximately 14% of Kioxia's equity.