Korean individual investors, known as 'Seohakgaemi,' have sold off significant amounts of individual semiconductor stocks like Micron and SanDisk this month, while aggressively purchasing the leveraged exchange-traded fund (ETF) 'SOXL,' which tracks the semiconductor index's returns at three times the rate. This indicates a continued optimism about the semiconductor sector, with investors betting on the overall industry's potential rather than individual stocks.
According to data from the Korea Securities Depository, domestic investors net sold over $100 million (approximately 134.8 billion won) worth of shares in U.S. memory semiconductor company Micron from September 1 to 4.
They also sold $68.61 million (about 92.5 billion won) in SanDisk, a NAND flash memory company, and $49.37 million (around 66.6 billion won) in Marvell Technology, which specializes in data center networking and custom semiconductors.
The selling trend continued among major semiconductor stocks. Nvidia, the world's largest company by market capitalization, saw net sales of $15.56 million (about 21 billion won) during the same period. Additionally, SK Hynix's American Depositary Receipts (ADRs), which were listed on the New York Stock Exchange in July, experienced net sales of $46.16 million (approximately 62.2 billion won).
Notably, SK Hynix ADRs had previously attracted significant investment from domestic investors. Up until the end of August, they had net purchased $810.97 million (around 1.03 trillion won) in SK Hynix ADRs, but this month, the trend has shifted to net selling.
In contrast to the withdrawal from individual semiconductor stocks, demand for investments in the semiconductor sector remains strong. During the same period, domestic investors net purchased $430.95 million (approximately 580.9 billion won) in 'Direxion Daily Semiconductor Bull 3X Shares' (SOXL).
Known colloquially as 'Soksul,' SOXL is a leveraged ETF that aims to deliver three times the daily return of the Philadelphia Semiconductor Index. As of the end of August, the total amount held by domestic investors in SOXL reached $5.23 billion (about 7.5 trillion won).
Recent trading patterns have shifted rapidly. Domestic investors net sold $752.44 million (approximately 1.1 trillion won) in SOXL over two days on August 28 and 31, but have since returned to large-scale buying this month.
As concerns about a 'peak-out' in earnings arise due to the recent surge in semiconductor stock prices, investors appear to be realizing profits from individual stocks while maintaining their growth expectations for the semiconductor industry driven by the expansion of artificial intelligence (AI), directing their investments toward SOXL.
* This article has been translated by AI.
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