Samsung Electronics shares fell as much as 8% on Monday after investors were disappointed by the company’s latest shareholder return plan.Samsung said it plans to return between 90 trillion won and 110 trillion won ($65 billion-$79 billion) to shareholders in 2026. It is the largest annual payout announced by the company so far.The reaction came despite the size of the proposed payout. Investors had expected Samsung to put more money into share buybacks and cancellations, particularly as the company benefits from strong demand for chips used in artificial intelligence systems.The announcement also put pressure on shares of Samsung Life Insurance and Samsung Fire & Marine Insurance.Key Highlights Samsung shares fall 8% after record shareholder payout plan Samsung announces up to $79 billion shareholder return for 2026 Investors wanted larger Samsung share buybacks amid AI chip boomRecord Payout Falls Short of ExpectationsSamsung’s 2026 shareholder return plan includes around 30 trillion won in dividends, including regular payments in the third quarter. The company has also approved a share buyback worth about 15 trillion won for employee compensation. The plan is part of Samsung’s commitment to return 50% of its free cash flow to shareholders between 2024 and 2026.Samsung’s financial position has improved as demand for memory chips used in AI data centres has grown. The company reported record second-quarter revenue of 171.5 trillion won and operating profit of 89.5 trillion won, helped by stronger semiconductor demand.However, investors wanted more direct action to increase shareholder value. Rival SK Hynix recently announced a 40 trillion won share buyback and cancellation plan, raising expectations that Samsung would make a similar move.The difference between the two approaches appears to have influenced the market reaction. While Samsung’s overall payout is much larger, investors are paying close attention to how much of that money will actually reduce the number of shares in circulation.AI Chip Demand Adds Pressure on SamsungThe strong demand for AI infrastructure has created an opportunity for South Korea’s major chipmakers. Samsung and SK Hynix have benefited from growing demand for high-bandwidth memory and other advanced chips used in AI servers.Samsung’s latest shareholder return plan is almost five times larger than its previous record payout of 20.3 trillion won in 2020. Even so, the announcement did not provide the boost investors had expected.One reason is the company’s ownership structure. Large-scale share buybacks can affect affiliated companies such as Samsung Life Insurance and Samsung Fire & Marine Insurance because of South Korea’s rules on ownership and financial companies. This can make it harder for Samsung Electronics to carry out very large buybacks.For now, Samsung is expected to rely heavily on dividends as it returns cash to shareholders. The company is likely to face continued pressure to explain how it plans to use its strong cash flow while also investing in its semiconductor business.Also Read: Ping An Profit Jumps 36% as Asset Management Lifts First-Half GainsInvestors will be watching Samsung’s AI chip business, earnings and future capital-return plans closely. The company’s next challenge will be to show that its record profits can translate into returns that shareholders consider strong enough.