Samsung Electronics has once again taken center stage in the global technology sector, announcing record-breaking earnings that have sent ripples across the semiconductor industry and financial markets. Yet, in a twist that’s left many market watchers scratching their heads, foreign investors have continued to offload Samsung shares despite these historic results, raising questions about the complex interplay of global risk, AI-driven demand, and evolving industry cycles.
On April 7, 2026, foreign investors sold approximately 538 billion KRW worth of Samsung Electronics shares, according to the Korea Exchange. This move extended a three-month selling streak, with over 41 trillion KRW in Samsung shares sold since the start of the year. The foreign ownership ratio of Samsung Electronics dropped to 48.40% as of April 3—its lowest point since September 2013, and a sharp fall from 52.33% at the end of 2025. Even after the record earnings announcement, foreign investors have not returned en masse to buy Samsung shares, a trend attributed by analysts to global geopolitical risks and other external factors.
Adding to the intrigue, individual investors have also shown a selling tendency in April, leaving so-called “other corporations” (interpreted as treasury stock holders) as the primary buyers propping up the stock price. Many experts argue that a sustained rally in Samsung’s stock will require a return of foreign investor enthusiasm. “The current memory cycle is still in its mid-stage,” explained Kim Sun-woo, a researcher at Meritz Securities, in comments reported by Newsis. “If you look at past cycles, when price increases and volume expansion overlap, memory companies’ earnings improve explosively. That period is expected to occur between the fourth quarter of this year and the second quarter of next year.”
Despite the heavy selling, the story isn’t entirely bearish for foreign investors. Jeon Gyun, a Samsung Securities researcher, noted that “even with the large-scale selling, the remaining foreign investors still hold over 10% more shares than at the start of 2026, maintaining unrealized gains.” According to Jeon, shifts in portfolio strategies by global pension funds and hedge funds—rather than outright pessimism—may explain these outflows. Notably, while passive funds such as ETFs have increased their holdings, emerging market and value funds have tactically reduced exposure, reflecting Samsung’s transition from an emerging-market play to a global growth stock.
Meanwhile, the semiconductor sector is undergoing what some analysts call a structural transformation, propelled by the twin engines of soaring memory prices and surging demand for AI infrastructure. On April 8, No Geun-chang, head of Hyundai Motor Securities Research Center, projected on Yonhap Infomax that Samsung Electronics could achieve a quarterly operating profit of 100 trillion KRW by the third quarter of 2026. “In 2018, when Samsung posted 59 trillion KRW in operating profit, the DRAM market was worth 100 billion dollars. This year, it’s 500 billion dollars,” No said. “If memory prices maintain even single-digit growth, operating profit could improve dramatically. It’s too early to talk about a peak—we need to accept a new ‘normal.’”
What’s driving this new normal? The answer lies in the rise of agentic AI services—AI systems that not only analyze information but also act on behalf of users. Unlike traditional chatbots, these systems require massive data processing and must operate in real time, fundamentally changing the structure of memory demand. “To replace human work, AI can’t tolerate delays,” No explained. “The best way to achieve low latency is by expanding memory capacity.”
Memory price negotiations are reportedly happening at levels far above market consensus, with second-quarter price increases expected to exceed the 30% forecast. NAND prices, in particular, are set to rise faster than DRAM, as some manufacturers shift capacity from NAND to DRAM and enterprise SSD demand climbs with the spread of agentic AI. Since Samsung is the market leader in NAND, it stands to benefit significantly from this trend.
Furthermore, the traditional boom-and-bust cycle of the semiconductor industry may be weakening. Analysts suggest that as agentic AI and, by 2030, technologies such as autonomous driving and humanoid robots proliferate, the industry could see fewer sharp downturns. However, there are still risks. No Geun-chang pointed to the upcoming IPO of OpenAI as a potential wildcard. “If OpenAI fails to go public or the results are poor, data center investment could slow,” he warned. Given that data centers account for 70% of 2026 memory semiconductor demand, any hiccups here could reverberate throughout the sector.
The optimism sparked by Samsung’s earnings has also buoyed expectations for SK Hynix, Korea’s other memory giant. As reported by Korea Financial News, SK Hynix’s stock price soared past 1 million KRW on April 8, supported by net buying from foreign investors. Securities firms now forecast SK Hynix’s first-quarter sales between 18 and 22 trillion KRW, with operating profit estimated at 5 to 8 trillion KRW. The market is shifting from cutthroat share competition to a broader “market expansion competition,” especially in High Bandwidth Memory (HBM) for AI applications. HBM demand is characterized by customized supply and long-term contracts, fostering cooperative growth between Samsung and SK Hynix, rather than the usual zero-sum rivalry.
“Despite noise around HBM, SK Hynix maintains strong competitive power,” said Ryu Young-ho, an analyst at NH Investment & Securities. “Long-term contracts are increasing visibility and customer loyalty.” Several firms, including KB Securities, have raised their target prices for SK Hynix, citing DRAM and NAND price hikes, AI server demand, and potential overseas listings as structural drivers. Kim Rok-ho, an analyst at Hana Securities, noted that “robust server demand and proactive purchasing by mobile and PC customers are pushing memory prices higher than expected.”
Still, there are clouds on the horizon. Analysts caution that volatility in HBM supply and demand, dependence on major customers, and the inherent swings of the industry cycle remain risks. An industry insider summed it up: “The market structure is changing. Now, AI demand is growing the pie for everyone, but the speed of supply expansion could affect profitability.”
Retail investors, meanwhile, are not standing idly by. On April 8, as of 9:30 AM, the top 1% of stock investors were reported by Maeil Business Newspaper to be heavily buying Samsung Electronics following its record Q1 earnings of 57.2 trillion KRW in operating profit. These elite investors also picked up shares in Hyundai Motor, LIG Nex1, Samsung SDI, and Isu Petasys, while selling SK Hynix and other names—a sign that even among the savviest players, opinions remain divided on how to play the unfolding memory boom.
As the dust settles on Samsung’s historic quarter, the semiconductor industry is clearly at a turning point. AI-driven demand, evolving investor strategies, and shifting market dynamics are creating a landscape where old rules may no longer apply. What comes next will depend not just on earnings, but on the ability of companies, investors, and even entire markets to adapt to this rapidly changing environment.