Foreigners Buying Semiconductors Again...Expectations for Full-Scale Supply and Demand Improvement

Summary

Lee Ji-hwan, CEO of Aurora Investment Advisory, explains that foreign investors are buying Korean semiconductors again after a period of selling, signaling a potential bottom. He attributes recent volatility to options market manipulation around US expiration dates and downplays news like China’s Kimi as noise. He recommends holding Samsung Electronics and SK hynix with a reduced position and hedges, while watching hyperscaler capex trends.

• Foreign investors have turned net buyers of Korean semiconductor stocks after sustained selling.
• The recent sell-off and negative news (Kimi, DeepSeek) were amplified by US options expiration dynamics and will likely fade.
• Lee Ji-hwan advises reducing semiconductor exposure to 70%, holding with hedges, and adding slowly on confirmation.
• He believes the correction is not a long-term top, and demand remains supported by AI capex trends.
• Leverage ETF flows are shifting from Korea to the US due to SK hynix ADR listing and regulatory changes.
• Upcoming US hyperscaler earnings will provide clarity on memory chip demand.