Samsung's stock price rises over 7% following unexpected $7 billion buyback announcement.

• On Monday, Samsung Electronics' stock price increased after the company announced a plan to purchase approximately 10 trillion South Korean won ($7.19 billion) of its own shares over the next year.
• In Seoul, the stock of the South Korean tech giant increased by more than 7% after it had already gained 7.21% on Friday, due to the announcement of a preliminary agreement with its largest workers union, which went on strike in July.

On Monday, Samsung Electronics' stock price increased after the company announced a plan to purchase approximately 10 trillion South Korean won ($7.19 billion) of its own shares over the next year.

In Seoul, the stock of the South Korean tech giant increased by more than 7% after it had already gained 7.21% on Friday, due to the announcement of a preliminary agreement with its largest workers union, which went on strike in July.

According to LSEG's data, Samsung last repurchased shares in November 2017.

The company announced that it will buy back 3 trillion won of shares and cancel them in the next three months. Additionally, the company will authorize the Board to decide on ways to enhance shareholder value, including when and how to use the treasury shares worth 7 trillion won.

On November 15, Samsung's shares reached a four-year low due to the company's poor third-quarter profit guidance and concerns about tariffs following the election of U.S. President-elect Donald Trump.

Samsung has not been able to catch up with SK Hynix in the development of high bandwidth memory (HBM) chips, which are crucial for AI leader Nvidia, according to analysts who spoke to CNBC.

DRAM, which stands for Dynamic Random Access Memory, is a type of memory commonly used in laptops, workstations, and PCs.

Nvidia received the first HBM3E chips from SK Hynix in March, making SK Hynix the first chipmaker in the world to supply these chips.

— CNBC's Arjun Kharpal contributed to this report.