Korean investors concentrated purchases on US semiconductor stocks and ETFs during a recent market decline, according to Korea Securities Depository data. Six semiconductor-related products ranked in the top 10 net purchases from last month's 30th to the day before publication, totaling $552.67 million and representing 68.1% of the top 10's combined net purchases. Investors engaged in dip-buying despite all six holdings declining by double-digit percentages during the same period. Analysts attribute the semiconductor sector's volatility to profit-taking after the Philadelphia Semiconductor Index recorded an 87.8% gain in Q2 this year, its highest quarterly return in history, rather than fundamental deterioration.
Korean Investors Net Purchase $552.67 Million in Six Semiconductor Products
SOXL, a 3X leveraged ETF tracking the Philadelphia Semiconductor Index's daily returns, ranked first with $200.58 million in net purchases. Applied Materials followed with $95.51 million in net purchases. The Roundhill T-REX 2X Long DRAM Daily Target ETF and Micron recorded $84.92 million and $77.98 million in net purchases respectively. SNXX, a 2X leveraged ETF tracking SanDisk's daily returns, and SanDisk also ranked in the top 10 net purchases.
All Six Semiconductor Holdings Decline Double-Digits During Purchase Period
SOXL declined 27.0% during the period from last month's 30th to the day before publication. Applied Materials and Micron fell 18.0% and 14.7% respectively. The DRAM 2X ETF declined 12.3%. SNXX and SanDisk dropped 43.7% and 23.3% respectively. All six semiconductor-related products in the top 10 net purchases declined by double-digit percentages.
Samsung Securities Analyst Attributes Decline to Profit-Taking After Record Q2 Gains
Seo Jung-hoon, Samsung Securities Global Equity Team Head, characterized the recent semiconductor stock decline as an overheating correction following steep gains rather than fundamental damage. The Philadelphia Semiconductor Index's 87.8% Q2 gain this year marked the highest quarterly return in the index's history. The semiconductor and semiconductor equipment sector's weighting in the S&P 500 reached an all-time high, creating conditions where profit-taking pressure and minor negative news could amplify price volatility.
Seo cited Meta's announcement about leasing surplus computing resources as an example of market overreaction. "Global markets convulsed last week over Meta's news, even though the existence of Meta's idle resources was unconfirmed," Seo stated. "The news served as a pretext for profit-taking in the semiconductor sector."
Seo noted that memory-related stocks' technical overheating burden has been substantially resolved through the recent decline. Memory stocks' price gains were based on earnings improvements, and earnings estimate increases exceeded stock price gains, maintaining valuation attractiveness. "Recent market rallies have been thoroughly grounded in earnings improvements," Seo stated. "Considering that AI infrastructure, including semiconductors, still has the highest earnings visibility, market leadership is unlikely to shift easily even if macro conditions improve further."
FAQ
What did Korean investors purchase in US stocks from last month's 30th to the day before publication?
Korean investors net purchased $552.67 million across six semiconductor-related stocks and ETFs, representing 68.1% of the top 10 net purchases. SOXL led with $200.58 million, followed by Applied Materials ($95.51 million), DRAM 2X ETF ($84.92 million), Micron ($77.98 million), SNXX, and SanDisk.
Why did Korean investors buy semiconductor stocks during double-digit declines?
Investors engaged in dip-buying as analysts characterized the declines as profit-taking after overheating rather than fundamental deterioration. The Philadelphia Semiconductor Index recorded an 87.8% gain in Q2 this year, its highest quarterly return in history, creating conditions for volatility and profit-taking pressure.
How much did the six semiconductor products decline during the purchase period?
SOXL declined 27.0%, Applied Materials fell 18.0%, Micron dropped 14.7%, DRAM 2X ETF declined 12.3%, SNXX fell 43.7%, and SanDisk dropped 23.3%. All six products declined by double-digit percentages during the period from last month's 30th to the day before publication.
