Alphabiz - Retail Margin Buying Surges Into Samsung Electronics and SK Hynix Amid AI-Driven Rally

Photo courtesy of Yonhap News

[Alpha Biz= Ellie Kim] Retail investors in South Korea are rapidly increasing leveraged bets on Samsung Electronics and SK Hynix, driving a sharp concentration of market funds into the two semiconductor giants.

According to Kiwoom Securities, margin loan balances reached KRW 3.21 trillion for Samsung Electronics and KRW 2.27 trillion for SK Hynix as of May 6, surging up to 156.8% year-to-date. On May 7, retail investors allocated about 77% of their total net buying—KRW 5.99 trillion—into the two stocks alone, based on data from the Korea Exchange.

The trend reflects a clear rotation, with investors selling other holdings such as secondary batteries and small-cap stocks to concentrate on large-cap semiconductors. Even top-performing investors are following suit, while analysts expect the momentum to continue amid strong AI-driven demand.

Han Dong-hee of SK Securities said the sector should now be viewed as core AI infrastructure rather than a cyclical industry, raising target prices to KRW 500,000 for Samsung Electronics and KRW 3,000,000 for SK Hynix.

Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)