Foreign investors bought Samsung and SK Hynix for four consecutive days, totaling 4.485 trillion KRW.

ME AI message: Foreign investors have net purchased South Korean stocks for four consecutive trading days since July 20, accumulating a total net buy of KRW 5.574 trillion, approximately USD 37.9 billion, pushing the KOSPI index back above the 7,000-point mark today. SK Hynix received net purchases of KRW 2.756 trillion, while Samsung Electronics received KRW 1.729 trillion—combined, these two stocks accounted for KRW 4.485 trillion, representing the overwhelming majority of foreign inflows. This marks the first time since April that foreign investors have posted four consecutive days of net buying in South Korean equities, with the single-day peak occurring on the 22nd at KRW 262 billion in net purchases. The core rationale behind foreign investors’ concentrated bets on South Korea’s leading memory chip manufacturers rests on three pillars: First, Alphabet, the parent company of Google, raised its 2026 capital expenditure guidance from USD 180–190 billion to USD 195–205 billion and indicated it will significantly increase investments further in 2027. Its remaining performance obligations surged to USD 514 billion, up nearly 10% quarter-over-quarter, confirming that massive cloud providers continue to accelerate their AI investments. Second, following a significant correction, the 12-month forward price-to-book ratios for Samsung Electronics and SK Hynix have declined to 1.8x and 2.7x, respectively. Their expected dividend yields based on this year’s earnings have reached 7.9% and 11.1%, respectively, significantly restoring their valuation appeal. Third, DRAM contract prices are projected to still have around a 40% upside potential by the end of 2027. HBM supply remains persistently tight due to consumption far outpacing that of standard DRAM. However, foreign investors have shown clear differentiation within the semiconductor sector—during the same period, they net sold KRW 139.9 billion in Hanmi Semiconductor and KRW 43.4 billion in Daedeok Electronics, as SK Hynix and Samsung Electronics offer relatively higher earnings visibility. Future Asset analysts note that the reasons for the stock declines are now clear and the corrections have been fully absorbed, making the current level an attractive entry point for accumulation. (Source: BlockBeats)