Foreign investors are returning to AI semiconductor stocks that had been undergoing a correction. Over the past three trading days, more than 2.7 trillion won in foreign capital has flowed into Samsung Electronics and SK hynix alone. Securities firms are also raising their target prices.
According to data from the Korea Exchange on the 16th, foreign investors net purchased 441.6 billion won worth of Samsung Electronics shares during the three trading days from the 11th to the 15th. Net buying means buying more shares than selling. Buying was even stronger in SK hynix. During the same period, foreign investors bought 2.2662 trillion won worth of SK hynix shares.
◆ 2.7 trillion won in three days… foreigners are back
What stands out is that investor sentiment split sharply. While foreign investors were buying aggressively, retail investors and institutions moved in the opposite direction. In the two stocks combined, retail investors sold nearly 1.1 trillion won and institutions sold nearly 1.5 trillion won. Foreign investors alone drove the buying trend.
Share prices moved higher. The previous day, Samsung Electronics closed at 337,000 won, up 4.50 percent, while SK hynix ended at 2,288,000 won, up 6.42 percent. Both companies’ shares rose for three consecutive trading sessions.
This move is a rebound after a recent correction. Although short-term volatility increased amid concerns over U.S. interest rate hikes and talk of an overheated AI investment cycle, the market sees foreign capital once again concentrating on leading semiconductor stocks.
◆ Target prices of 610,000 and 4 million won… securities firms raise expectations
Securities firms are also looking higher. For Samsung Electronics, SK Securities issued the highest target price at 610,000 won. A target price is a securities firm’s estimate of fair value. Mirae Asset Securities set it at 550,000 won, while NH Investment & Securities and KB Securities each set it at 530,000 won. Samsung Securities raised its target from 300,000 won to 500,000 won.
Samsung Securities analyst Lee Jong-wook said that as AI agents spread, memory demand is becoming more sustainable, while DRAM supply is unlikely to keep pace. He analyzed that Samsung Electronics could be reassessed as the memory industry improves. DRAM is memory semiconductor used to store data temporarily for fast processing, and demand rises along with AI services.
Expectations for SK hynix have also increased. SK Securities maintained its target price at 4 million won, while Mirae Asset Securities and KB Securities each set it at 3.8 million won.
KB Securities research division head Kim Dong-won noted that the AI agent market is expanding beyond the cloud to individual devices such as PCs and smartphones. As a result, demand is accelerating for everything from high-bandwidth memory (HBM) to server DRAM, enterprise SSDs, and low-power memory. HBM is a high-performance memory that stacks multiple memory chips to allow faster data transfer and is considered a core component for AI computing.
◆ A bet on a ‘supercycle,’ not just supply and demand
Many believe foreign investors’ return cannot be explained simply as a short-term shift in supply and demand. The interpretation is that this is not just a temporary buying streak, but a bet on a long-lasting semiconductor boom, or a “supercycle.” A supercycle refers to a prolonged period of growth in the semiconductor industry.
There are two main reasons. First, investment in AI data centers continues to grow. Second, HBM, a key component, is not being supplied fast enough to meet demand. One industry official said, “Although short-term volatility has increased due to concerns about an overheated AI investment cycle, the structural growth story of expanding data center investment and HBM supply shortages remains valid.”
Still, there is no room for unqualified optimism. The direction of U.S. interest rates and concerns over an AI investment bubble remain variables. Target prices are only securities firms’ forecasts, and there is no guarantee actual share prices will reach those levels. The fact that retail investors and institutions shifted to selling this time is also tied to such caution.
What is clear is that foreign investors have shifted the weight of their bets back toward semiconductors. Whether that bet becomes the opening signal of a supercycle or merely a scene in a volatile market will require more time to determine. The memory industry cycle, HBM supply and demand, and AI investment trends will hold the key.