Investor sentiment splits between Samsung, SK hynix over outlook
Samsung Electronics’ production facility in Pyeongtaek, Gyeonggi Province / Korea Times file
Foreign and domestic retail investors are showing a stark contrast in their semiconductor stock picks, with the former scooping up Samsung Electronics shares this month while the latter have been buying SK hynix, industry officials said Monday.
The two firms' stock prices are also moving in opposite directions, with Samsung Electronics rising and SK hynix declining.
According to the Korea Exchange, foreign investors purchased a net 1.88 trillion won ($1.4 billion) worth of Samsung Electronics shares from July 1 to 18. That more than doubles the 713 billion won they purchased in all of June.
Foreign ownership in Samsung Electronics climbed back above the 50 percent mark to 50.19 percent, reaching that level for the first time since April 24, when it stood at 50 percent.
On the other hand, foreign investors offloaded 301 billion won worth of SK hynix shares during the July 1-18 period.
Domestic retail investors, meanwhile, showed the opposite trend, snapping up 1.23 trillion won worth of SK hynix shares, while selling 2.31 trillion won worth of Samsung Electronics shares over the same period.
Amid this investor split, the two companies' stock performances followed different paths.
Samsung Electronics climbed 11.46 percent this month, rising from 60,200 won to 67,100 won, while SK hynix declined 5.77 percent from 285,500 won to 269,000 won.
The surge in Samsung's stock price is seen as being driven by the resolution of legal uncertainties surrounding Executive Chairman Lee Jae-yong.
After the Supreme Court cleared him Thursday, of charges related to an unfair merger dating back to 2015, expectations grew for greater management stability within the group.
Investor confidence was boosted further by the U.S. government's recent decision to lift export restrictions on Nvidia's H20 artificial intelligence chips to China. As Samsung had reportedly supplied memory chips for the H20, this development improved the market's outlook on the company.
SK hynix’s high-bandwidth memory (HBM) featured at HPE Discover 2025, held in Las Vegas from June 23 to 26 / Courtesy of SK hynix
SK hynix, on the other hand, faced headwinds due to fears of oversupply and price drops in the high-bandwidth memory (HBM) market.
Investor confidence took a significant hit after Goldman Sachs, an international brokerage firm, projected that HBM prices might fall for the first time in 2026.
Views among securities analysts also differ regarding Samsung Electronics and SK hynix.
Ryu Young-ho, an analyst from NH Investment & Securities, noted that SK hynix could face heightened volatility until its HBM supply for next year is confirmed.
"Growing anticipation of Samsung entering the HBM market makes Samsung more attractive from a valuation standpoint," Ryu said.
In contrast, Cha Yong-ho, an analyst at LS Securities, said that next year's average selling price for HBM is expected to decline by about 5 percent, which is less severe than market fears.
"The recent pullback in SK hynix shares is driven by excessive concerns. Investors are advised to view it as a buying opportunity," Cha said.