Foreign investors net purchased Samsung Electro-Mechanics stocks worth 446.2 billion won during the week of June 29–July 3, making it the top net-buy target in the KOSPI market, according to Korea Exchange data released on the 6th. The buying occurred as foreign investors net sold approximately 20 trillion won across KOSPI during the same period, driven by concerns over peak-out in the memory super cycle amid AI infrastructure expansion. Samsung Electro-Mechanics, which supplies multilayer ceramic capacitors (MLCC) and semiconductor package substrates to AI servers, recorded a 756.47% gain in the first half, the highest among all KOSPI-listed stocks, though the stock has entered a correction phase after peaking at 2.27 million won on the 19th of last month.
Samsung Electro-Mechanics Leads Foreign Net Buying Amid KOSPI Sell-Off
During the week of June 29–July 3, Samsung Electro-Mechanics attracted 446.2 billion won in foreign net buying, followed by DB HiTek (286 billion won), LG Innotek (165.7 billion won), and Hanmi Semiconductor (148.5 billion won). Only these four stocks received net purchases exceeding 100 billion won from foreign investors during the period.
Foreign investors net sold 19.8374 trillion won in the KOSPI market during the same week. On the 29th of last month, they recorded a single-day net sell of 7.8332 trillion won, the largest daily net sell in history.
Analysts attribute the selective buying to foreign investors taking profits on Samsung Electronics and SK hynix amid peak-out concerns while accumulating positions in stocks expected to benefit from AI infrastructure demand.
Stock Records 756.47% H1 Gain, Tops KOSPI Performance
Samsung Electro-Mechanics' stock price surged 756.47% in the first half, the highest gain among all KOSPI-listed stocks. The increase more than doubles SK hynix's 307.07% gain during the same period. The second-highest gainer was Samsung Electro-Mechanics preferred shares, up 585.34%.
Foreign investors net purchased 2.2774 trillion won worth of Samsung Electro-Mechanics shares in the first half, the largest net-buy amount for any stock. The figure exceeds the second-place Doosan Enerbility (1.7149 trillion won) by over 500 billion won.
Demand for the company's high-performance MLCC and semiconductor package substrates has surged due to AI server and accelerator requirements. Supply sources for ultra-high-performance MLCC and package substrates are limited to Samsung Electro-Mechanics and Japanese firms such as Murata Manufacturing and Ibiden.
The stock peaked at 2.27 million won on the 19th of last month before entering a correction phase as profit-taking emerged. On the 6th, the stock closed at 1.828 million won, down 8.09% from the previous session.
Analysts Raise Target Price to 3 Million Won, Forecast Q2 Profit Beat
Kyobo Securities raised its target price for Samsung Electro-Mechanics from 1.2 million won to 3 million won on the 6th. Researcher Choi Bo-young stated, "Operating profit in the second half will expand quarter-over-quarter as volume, pricing, and product mix improvements occur simultaneously. The target price reflects earnings improvement prospects through 2027 and global peer valuations."
Mirae Asset Securities revised its second-quarter operating profit estimate upward on the 6th, forecasting revenue of 3.3 trillion won and operating profit of 414.3 billion won, 7.4% above the consensus of 385.6 billion won.
Researcher Park Jun-seo explained, "Producing one AI MLCC consumes production capacity equivalent to three conventional MLCCs. This mirrors how high-bandwidth memory (HBM) production erodes DRAM capacity and creates supply shortages. As AI MLCC orders increase, total available supply volume decreases rapidly, inevitably intensifying supply shortages."
FAQ
Q: How much did foreign investors net buy Samsung Electro-Mechanics during the week of June 29–July 3?
A: Foreign investors net purchased 446.2 billion won worth of Samsung Electro-Mechanics stocks during the week of June 29–July 3, making it the top net-buy target in the KOSPI market according to Korea Exchange data released on the 6th.
Q: What was Samsung Electro-Mechanics' stock performance in the first half?
A: Samsung Electro-Mechanics recorded a 756.47% gain in the first half, the highest among all KOSPI-listed stocks. The stock peaked at 2.27 million won on the 19th of last month before entering a correction phase, closing at 1.828 million won on the 6th (down 8.09% from the previous session).
Q: What is Kyobo Securities' new target price for Samsung Electro-Mechanics?
A: Kyobo Securities raised its target price for Samsung Electro-Mechanics from 1.2 million won to 3 million won on the 6th, citing earnings improvement prospects through 2027 and global peer valuations.
