U.S. Stock Holdings Exceed 300 Trillion Won as Big Tech Rally Resumes

The resurgence of a rally centered on major U.S. tech companies has pushed the value of U.S. stock holdings to over 300 trillion won. As domestic market support policies and expectations for the KOSPI to reach 8,000 have stalled, overseas investors are preparing to return to the U.S. market.
 
According to the Korea Securities Depository's securities information portal, Saveuro, as of May 14, the value of U.S. stocks held by domestic investors was recorded at $200.11 billion (approximately 300.27 trillion won). This marks the second time that U.S. stock holdings have surpassed $200 billion since May 11.
 
The holdings represent the amount of foreign securities purchased by domestic investors and held by the Korea Securities Depository. However, considering the recent strength of the U.S. stock market, it is believed that the increase in value is more influenced by rising stock prices than by actual capital inflows.
 
Despite the outflow of funds, the increase in U.S. stock holdings suggests that the rise in the U.S. stock market has been significant. Notably, many of the top U.S. stocks held by domestic investors are concentrated in artificial intelligence (AI), semiconductors, and big tech, indicating that the recent rally has had a direct impact.
 
Indeed, U.S. tech stocks have recently experienced a sharp upward trend. The Nasdaq index has risen approximately 5.4% this month and has surged about 26.7% from its low in March. The S&P 500 index is also reaching new all-time highs, driven by gains in major tech stocks related to AI and semiconductors.
 
Prominent stocks favored by overseas investors, such as Tesla and Nvidia, have seen increases of about 22% and 15%, respectively, over the past month. However, domestic investors have been taking profits, recording net sales of $432 million in Tesla and $738 million in Nvidia during the same period.
 
In the past month, the most purchased U.S. stock by domestic investors was Intel. The company has seen a surge in its stock price due to expectations surrounding semiconductor production contracts for Apple's next-generation devices. Additionally, AI-related tech stocks like Micron and Alphabet have also ranked high in net purchases.