Retail Investors Flock to Samsung Electronics Amid Market Fluctuations

Retail investors have poured 2.33 trillion won ($1.67 billion) into Samsung Electronics stocks since the U.S. presidential election, according to the latest data from the country’s main stock exchange.

Despite significant sell-offs by foreign investors, individual buyers continued to purchase shares of the South Korean tech giant for eight consecutive trading sessions, concluding on November 15. Data from the Korea Exchange (KRX) revealed that while retail investors were acquiring shares, foreign investors sold off a substantial 2.48 trillion won worth of Samsung Electronics stocks during the same period.

Recently, Samsung Electronics has faced a downward trend, hitting its lowest point in over four years at 49,900 won. The decline is linked to concerns about potential cuts to chip-related incentives under the leadership of U.S. President-elect Donald Trump. Additionally, lackluster earnings and a bleak outlook for the global semiconductor sector have contributed to the pressure on Samsung’s stock value.

The tech giant, known as the world’s leading memory chip manufacturer, appears to be trailing behind its domestic competitor SK hynix in the high bandwidth memory (HBM) sector. These HBM chips are increasingly in demand due to their critical role in artificial intelligence computing. Samsung's plans to supply its latest fifth-generation HBM3E chips to AI industry leader Nvidia have been delayed due to quality control issues.

In an effort to counter the recent stock price decline, Samsung Electronics announced on Friday a 10 trillion-won share buyback program, to be implemented over the next 12 months. Following this announcement, Samsung’s stock saw a 7.21% increase, closing at 53,500 won on the same day.

As part of the buyback initiative, the company intends to cancel 3 trillion won worth of shares within the first three months, with this phase scheduled to begin on Monday and continue until February 17. The company has committed to evaluating the remaining 7 trillion won worth of shares for additional actions at future board meetings, all aimed at enhancing shareholder value.

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