Foreign investors sell billions of dollars worth of Samsung shares

Samsung Electronics has faced a significant decline in its share price due to a number of problems in its business. Foreign investors, who used to be the main buyers of the company's shares, are now actively dumping them for billions of dollars.

Here's What We Know

During the current month, Samsung Electronics shares were sold for a total of more than $1.7 billion, which caused a wave of reaction in international markets. Foreign investors, who previously bought $8.72 billion worth of shares during the period from November 2023 to May 2024, are now actively selling them.

One of the main factors that led to the decline in the share price is difficulties in the competitive environment. Samsung is lagging behind in the high-bandwidth memory race compared to SK Hynix, and is also facing a potential failure of quality tests for NVIDIA's HBM3E memory.

The notable risk of a strike at Samsung Electronics is also putting pressure on investors. The national union of Samsung Electronics, which consists of 90% of the employees of the semiconductor division, is preparing for a possible strike. This could create significant disruptions to production, especially in the semiconductor sector, where the slightest disruption could have serious consequences.

The average projected share price remains at 105,000 won or $76, but a downturn in the market could lead to a further drop in prices.

Source: SamMobile