Foreign Investors Buy Samsung and SK Hynix Stocks Worth Over 4.5 Trillion KRW for 4 Consecutive Days, Analysts Believe Correction Has Been Fully Absorbed

BlockBeats News, July 23, Foreign investors have been net buyers of South Korean stocks for four consecutive trading days since July 20, with a total net purchase of 5.574 trillion Korean won, approximately $37.9 billion, pushing the KOSPI index back above the 7000 point mark today. Among them, SK Hynix received a net purchase of 2.756 trillion Korean won, and Samsung Electronics received 1.729 trillion Korean won, with the two stocks totaling 4.485 trillion Korean won, accounting for the absolute majority of foreign net purchases. This is the first time foreign investors have shown net buying of Korean stocks for four consecutive days since April, with the peak occurring on the 22nd when the net purchase amount reached 2.62 trillion Korean won.

Foreign funds' concentrated heavy positions in South Korea's leading storage chip companies are based on three core logics:

First, Google's parent company Alphabet raised its 2026 capital expenditure guidance from $180-190 billion to $195-205 billion and indicated that it will continue to significantly increase investment in 2027, with its remaining performance obligations soaring to $5.14 trillion, a nearly 10% increase from the previous quarter, validating that the AI investment in super-scale cloud commerce is still accelerating;

Second, after experiencing a significant retreat earlier, Samsung Electronics and SK Hynix's 12-month forward P/E ratios have dropped to 1.8 times and 2.7 times, respectively. The expected dividend yields based on this year's performance have reached 7.9% and 11.1%, respectively, showing a significant improvement in valuation attractiveness;

Third, the DRAM contract price is expected to have about 40% upside potential by the end of 2027, while the tight supply of HBM continues due to its significantly higher capacity consumption than regular DRAM. However, foreign funds show a clear differentiation within the semiconductor sector—over the same period, there was a net sale of 139.9 billion Korean won in South Korean-American semiconductors and 43.4 billion Korean won in DAEDUCK Electronics. The earnings visibility of SK Hynix and Samsung Electronics is relatively higher. In the future, asset securities analysts pointed out that the reasons for the stock price decline are clear, the correction has been fully digested, and the current level is an opportunity to accumulate at the lows.