Foreign Investors Set Record Net Buy of Samsung Electronics Amid AI-Driven Semiconductor Demand Recovery
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Foreign Investors Set Record Net Buy of Samsung Electronics Amid AI-Driven Semiconductor Demand Recovery
Goldman Sachs notes that AMD’s strong performance has lifted Korean semiconductor stocks; foreign investors’ record net purchase of Samsung Electronics underscores renewed confidence. The report also reviews Q1 earnings for multiple Korean companies and maintains neutral ratings for firms including KakaoBank.
- AMD’s stock surged 18.6%, reaffirming the long-term growth thesis for server CPUs driven by AI applications, supporting Korean tech stocks.
- Foreign investors executed a record single-day net purchase of $2.1 billion in Samsung Electronics shares, pushing its stock price to a new high.
- Doosan Robotics shareholders sold 4.6 million shares via an 8.9% discounted block trade, with a 60-day lock-up period imposed.
- KakaoPay’s Q1 revenue rose 42% YoY, exceeding expectations; SOOP’s target price was lowered to KRW 80,000 due to declining platform traffic.
- South Korea’s April CPI rose to 2.6% YoY, in line with expectations, primarily driven by oil prices.
Report interpretation
Overview
This report serves as Goldman Sachs’ market opening preview and key company earnings review for the Korean market. Core themes include positive sentiment in the semiconductor sector, driven by robust performance from U.S. AI chip leader AMD, and record foreign investor inflows into Samsung Electronics. Additionally, the report provides detailed Q1 earnings analysis for KakaoBank, Kakaopay, SOOP, and SM Entertainment, updating related ratings and target prices. On the macro front, South Korea’s April inflation data met consensus expectations.
Core views
Semiconductors & Capital Flows: AMD’s stock surged 18.6% intraday, and its optimistic guidance reinforced the long-term growth narrative for server CPUs powered by AI applications, lifting the Philadelphia Semiconductor Index (SOX) by 4.5%. Against this backdrop, foreign institutional investors demonstrated strong confidence in Korean memory giants: they executed a record single-day net purchase of $2.1 billion in Samsung Electronics shares—the highest on record, surpassing the prior peak of $1.7 billion in February 2026—and net purchased $135 million in SK Hynix shares. This capital inflow propelled Samsung Electronics’ share price to a new high. Individual Stock Earnings & Rating Updates: Performance in the fintech segment was mixed. Kakaopay reported Q1 operating profit of KRW 32.2 billion and revenue growth of 42% YoY, driven by strong brokerage/insurance business performance and growth in open-ecosystem payment revenue—exceeding expectations. Its rating remains Neutral with a target price of KRW 58,000. KakaoBank posted Q1 net profit of KRW 187 billion. While net interest margin recovery and lower provisions supported results, financial investment income sharply declined amid elevated interest rates, and loan growth remained sluggish, resulting in a 2.0% YoY decline in revenue. Its rating remains Neutral with a target price of KRW 26,000. Internet & Entertainment: SOOP reported Q1 operating profit of KRW 21 billion, below expectations. Although advertising revenue grew steadily, platform service revenue continued to contract due to falling user traffic and gifting-economy income—offsetting advertising gains. Goldman Sachs maintains its Buy rating but lowers the target price by 11% to KRW 80,000, noting that near-term stock performance will hinge on stabilization of monthly active users (MAU) and progress on global platform integration. SM Entertainment reported Q1 operating profit of KRW 39 billion, in line with expectations, with revenue up 21% YoY. However, gross margin pressure emerged as contributions from higher-margin veteran artist IPs increased, causing operating margin to decline by approximately 250 basis points YoY. Its rating remains Neutral with a target price of KRW 120,000.
Analysis framework
The report adopts an analytical framework combining 'macro/external market mapping + capital flow tracking + individual stock earnings decomposition.' First, it assesses sentiment transmission to Korean upstream suppliers (Samsung, SK Hynix) by observing U.S. semiconductor leaders (AMD) in terms of stock performance and forward guidance. Second, it validates market momentum and price drivers using high-frequency capital flow data (foreign investor net purchases/sales). Finally, it conducts granular earnings breakdowns—revenue, profit, margins, and business segment performance—for key covered companies’ Q1 results, benchmarking against market expectations (BBGe/GSe) to adjust valuations and ratings.
Methodology notes
Foreign capital flows as a short-term stock price driver
The report places particular emphasis on net foreign institutional investor (FII) buying/selling data, treating it as critical evidence explaining short-term price movements (e.g., Samsung Electronics’ new highs), reflecting shifts in global portfolio allocation sentiment toward specific securities.
Upstream-Midstream-Downstream Value Chain Transmission
By analyzing demand pull from downstream applications (AI servers) on upstream core components (CPUs/memory), the report explains how AMD’s optimistic guidance transmitted to Korean semiconductor manufacturers—illustrating logical interconnectivity across the global technology value chain.
Asset mapping & comparison
Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).
- Samsung Electronics (005930.SS)Benefiting from AI server demand growth and record foreign investor net purchases
- Strengths
- Global memory leader; strongly favored by foreign investors; share price at new highs
- Comparison
- Attracted greater foreign investor interest than SK Hynix
- SK Hynix (000660.SS)Benefiting from semiconductor sector recovery and foreign investor inflows
- Strengths
- Received $135 million in foreign investor net purchases
- Comparison
- Less foreign investor buying than Samsung Electronics
- Kakaopay (377300.KS)Earnings exceeded expectations, with robust revenue growth
- Strengths
- Strong brokerage/insurance business; stable open-ecosystem payment revenue
- Comparison
- Outperformed KakaoBank
- Risks
- Uncertainty around stablecoin-related developments
- SOOP (067160.KQ)Platform business weakness led to target price downgrade
- Strengths
- Steady advertising revenue growth
- Weaknesses
- Declining user traffic and reduced gifting-economy revenue
- Risks
- MAU stabilization falls short of expectations; execution risk in global platform integration
Key data
- Samsung Electronics Foreign Investor Net Purchase$2.1 billionRecord high; previous record was $1.7 billion in February 2026
- AMD Stock Gain+18.6%Led SOX index rally; reinforced AI server CPU growth thesis
- Kakaopay Q1 Revenue Growth+42% YoYExceeded market expectations, driven by brokerage/insurance and payment businesses
- SOOP Target Price AdjustmentKRW 80,000Reduced by 11% due to traffic decline offsetting advertising growth
- South Korea April CPI2.6%Up from prior 2.2%; in line with expectations, driven by oil prices
- Doosan Robotics Block Trade Discount8.9%Trading price KRW 95,382; sellers imposed a 60-day lock-up period
Impact & implications
The report concludes that heightened certainty around U.S. AI chip demand will continue to support valuations in the Korean semiconductor sector, especially given the record foreign inflows signaling renewed global portfolio appetite for industry leaders such as Samsung Electronics. For fintech stocks, performance divergence highlights the need to monitor stability in non-interest income streams and the impact of the macro interest-rate environment. SOOP’s case illustrates that, amid diminishing traditional traffic-driven growth, advertising gains cannot fully compensate for declines in core platform revenue—underscoring the importance of closely tracking user retention and effectiveness of new business integrations.
Risks
- Escalation of Middle East conflict may affect market sentiment
- Persistently rising Korean inflation could trigger concerns over monetary tightening
- Ongoing decline in SOOP’s user traffic
- Post-block-trade selling pressure from Doosan Robotics
What to watch
- SOOP’s monthly gifting-economy metrics and MAU trends
- Subsequent developments for KakaoBank and Kakaopay in the stablecoin space
- SOX index movement and its spillover impact on Korean tech stocks
- Continued foreign investor flows into Samsung Electronics and other index-heavyweight stocks