Foreign investors have been buying Samsung and Hynix for over 4.5 trillion Korean won for four consecutive days, and analysts believe that the correction has been fully digested According to BlockBeats, on July 23rd, foreign investors have been net buyers of Korean stocks for four consecutive trading days since July 20th, with a cumulative net purchase of 5.574 trillion Korean won, approximately 3.79 billion US dollars, pushing the KOSPI index back to the 7000 point mark today. Among them, SK Hynix received a net purchase of KRW 2.756 trillion and Samsung Electronics received KRW 1.729 trillion, totaling KRW 4.485 trillion, accounting for the absolute mainstay of foreign investment's total purchase scale. This is the first time since April that foreign investors have made net purchases of Korean stocks for four consecutive days, with a single day peak on the 22nd and a net purchase amount of 2.62 trillion Korean won. The core logic behind foreign investment's concentrated bets on South Korean storage chip leaders has three layers: firstly, Google's parent company Alphabet has raised its 2026 capital expenditure guidance from $180 billion to $190 billion to $195 billion to $205 billion, and stated that it will continue to significantly increase investment in 2027, with its remaining performance obligations soaring to $514 billion, a quarter on quarter increase of nearly 10%, verifying that AI investment by large-scale cloud providers is still accelerating; Secondly, after experiencing a significant pullback, the 12-month forward price to book ratios of Samsung Electronics and SK Hynix have dropped to 1.8 times and 2.7 times, respectively. The expected dividend yields calculated based on this year's performance have reached 7.9% and 11.1%, respectively, indicating a significant improvement in valuation attractiveness; Thirdly, it is expected that the DRAM contract price will still have about 40% room for increase by the end of 2027, and HBM's supply will continue to be tight due to its much higher capacity consumption than ordinary DRAM. However, foreign investment has shown significant differentiation within the semiconductor sector - net sales of Korean American semiconductors amounted to 139.9 billion Korean won and Daewoo Electronics sold 43.4 billion Korean won during the same period, while SK Hynix and Samsung Electronics have relatively higher visibility of their performance. Future asset securities analysts point out that the reasons for the decline in stock prices are clear and the pullback has been fully digested, and the current range is a low-level increase in positions. [Original link]