Seoul, South Korea – In a striking turn of events, retail investors have surged to acquire Samsung Electronics stocks, purchasing a remarkable 2.33 trillion won ($1.67 billion) worth of shares since the recent U.S. presidential election. This buying spree comes as a breath of fresh air for the South Korean tech giant amid significant selloffs from foreign investors, according to data released by the Korea Exchange (KRX) on Sunday.
Despite the backdrop of a turbulent stock market, individual investors displayed a keen interest in Samsung’s shares, engaging in bargain hunting for eight consecutive trading sessions leading up to November 15. In stark contrast, foreign investors offloaded 2.48 trillion won worth of Samsung stocks during the same period, reflecting a growing unease regarding the company's future prospects. Samsung Electronics has faced a challenging few months, with its stock price plummeting to an over four-year low of 49,900 won on Thursday.
Concerns have arisen over the potential scrapping of chip incentives by U.S. President-elect Donald Trump, as well as disappointing earnings reports and a dim outlook for the global semiconductor industry under the incoming administration. The company has reportedly lost ground to its local rival, SKY hnix Inc., particularly in the high bandwidth memory (HBM) segment, a market experiencing heightened demand due to its pivotal role in artificial intelligence (AI) computing. Compounding these challenges, Samsung's plans to deliver its latest fifth-generation HBM3E products to AI chip giant Nvidia Corp. have faced delays due to quality control issues.
In a bid to restore investor confidence and bolster its share price, Samsung Electronics announced a substantial 10 trillion-won share buyback plan to be executed over the next 12 months. Following the announcement, Samsung's stock rebounded impressively, soaring 7.21 percent to close at 53,500 won on Friday. In a strategic move, the company plans to cancel 3 trillion won worth of shares within the upcoming three months, aiming to enhance its value for shareholders. As Samsung navigates this tumultuous period, its path forward remains a focal point for investors and analysts alike, particularly in the wake of evolving market dynamics. For retail investors, the current climate presents a unique opportunity to capitalize on Samsung's stock, as many are betting on a rebound from the recent lows. As the company takes measures to stabilize and grow, the coming months will be critical in determining its future trajectory in the competitive semiconductor landscape.
