Foreign investors have been aggressively offloading large-cap semiconductor stocks on Korea's equity market in May while concentrating their buying on robotics-related shares, moving in the opposite direction from retail investors.
Semiconductor Profit-Taking, Capital Shifts to Robots
According to the Korea Exchange on Sunday, robotics names dominated the top ranks of foreign net buying between May 4 and May 8.
Hyundai Motor (005380.KS) topped the list with net purchases of 324 billion won. Doosan Robotics (454910.KS) followed closely at 316 billion won, while Rainbow Robotics (277810.KQ) logged 177 billion won in net buying. All three of the most heavily bought stocks by foreign investors were directly tied to robotics.
Retail investors moved in the opposite direction. Over the same period, individuals bought 946 billion won worth of SK hynix (000660.KS) and accumulated 860 billion won in Samsung Electronics preferred shares. The pattern suggests retail investors were absorbing the semiconductor supply that foreigners were unloading.
The mood has shifted sharply from a month earlier. In April, foreign investors net-purchased 1.323 trillion won in Samsung Electronics (005930.KS), expanding their exposure to the chip sector. SK hynix also drew 807 billion won in net buying, placing the two stocks first and third on the foreign net-buying rankings.
The flow reversed once May began. Foreign investors net-sold 2.395 trillion won of SK hynix, the largest sell-off of any stock, followed by 1.055 trillion won in Samsung Electronics and 1.042 trillion won in Samsung Electronics preferred shares. Net selling across the three semiconductor names alone exceeded 4 trillion won.
Market observers say the foreign selling stems from profit-taking urges following a short-term rally. Others point to a rotation into next-generation AI beneficiaries that carry relatively lighter valuation burdens.
Hyundai Motor Reframed From Automaker to Robotics Growth Stock
Brokerages are increasingly expecting AI innovation to evolve beyond software into a "physical AI" phase implemented on actual industrial sites. Robots are being identified as the core industry driving that transition.
Hyundai Motor, in particular, is being reassessed as a growth story that extends beyond a traditional automaker, as it rapidly expands its humanoid and industrial robot businesses through Boston Dynamics.
"Hyundai Motor should be valued with a growth-stock premium as a leading robotics company, not as a traditional value stock in the automaker category," said Kang Seon-jin, analyst at KB Securities.
"Hyundai Motor has presented a more realistic robotics business roadmap than its competitors, and it is proceeding as planned," Kang added. "Hyundai Motor's price-to-earnings ratio of just 15.9 times on a 12-month forward basis is too cheap."
