With foreign investors continuing to buy, shares of Samsung Electronics and SK hynix, the No. 1 and No. 2 by market capitalization in Korean stocks, are also showing strength. What stock investors are watching is how much buying capacity foreigners still have. Considering foreign equity ratios over the past 10 years, Samsung Electronics has room compared with the peak, while SK hynix is in a situation where it would have to set a new record from here.
According to the Korea Exchange on the 23rd, foreigners' equity ratio in Samsung Electronics stood at 51.11% as of the previous day. From the low of 49.56% on May 28, it has risen by about 1.6 percentage points. During the same period, foreigners were net buyers of 698.1 billion won worth of Samsung Electronics shares. The stock also jumped 49.4% (27,600 won), from 55,900 won to 83,500 won.
Over the past 10 years (Sep. 2015–Sep. 2025), foreigners' average equity ratio in Samsung Electronics has been 52.92%. It is still 1.81 percentage points lower. In particular, it is about 7 percentage points below the all-time high of 58.01% in Jul. 2019. Judging by the foreign equity ratio alone, there still appears to be buying capacity left.
Foreigners' equity ratio in SK hynix was 56.08% as of the previous day. Foreign investors have also steadily bought SK hynix shares since the equity ratio low of 53.22% on May 2. The cumulative net buying since then amounts to 431.3 billion won. The stock likewise rose 88.7% (165,000 won), from 186,000 won to 351,000 won.
The foreign equity ratio in SK hynix has averaged 50.58% over the past 10 years, currently exceeding that by 5.5 percentage points. However, it is 0.33 percentage points below the record high of 56.41% set in Jun. last year.
Foreigners have focused their buying on Samsung Electronics and SK hynix this month. The biggest reason is the so-called "semiconductor supercycle" potential. With demand from the artificial intelligence (AI) industry, not only high-bandwidth memory (HBM) but also commodity DRAM and NAND flash supplies could tighten. That is a price-boosting factor.
Morgan Stanley, the global investment bank (IB) that fanned the "semiconductor winter" thesis, said the industry has entered a new semiconductor cycle and projected that the average selling price (ASP) of DRAM could rise by about 9% further in the fourth quarter (Oct.–Dec.) of this year.
Citigroup (Citi) raised its target price for Samsung Electronics to 110,000 won, with a base scenario that average selling prices for DRAM and NAND flash in 2026 will rise 17% and 14%, respectively.
The key question is whether Samsung Electronics and SK hynix can lift product prices as much as the market expects. Results due this week from Micron Technology (MU; Micron) for its fiscal year fourth quarter (Jun.–Aug.) and its outlook for fiscal year 2026 (Sep. 2025–Aug. 2026) are expected to be a gauge. JPMorgan expects Micron's earnings per share (EPS) to surge from an average of $8.11 in fiscal year 2025 to $14.75 in fiscal year 2026.
However, it is necessary to consider that foreigners are sensitive to exchange rates. The won-dollar exchange rate is staying in the 1,390-won range. The consensus is that exchange-rate volatility will remain high for the time being, depending on details of the agreement related to a $350 billion U.S.-bound investment fund. If the won weakens, foreign investors could face currency losses and a stronger incentive to sell.