• Samsung Electronics has seen a surge in retail investor interest, despite a downward trend in stock value.
• The tech giant has fallen behind competitor SK hynix Inc.
• in the high bandwidth memory (HBM) chip segment.
• In response, Samsung announced a 10 trillion-won share buyback plan, causing shares to jump 7.21 percent.
• Amid these developments, Samsung plans to expand its semiconductor facilities to boost HBM chip production.

In the aftermath of the U.S. presidential election, retail investors have shown a renewed interest in Samsung Electronics. They have purchased stocks worth 2.33 trillion won ($1.67 billion), according to data from the Korea Exchange (KRX). This buying spree occurred over eight trading sessions through November 15, despite significant sell-offs by foreign investors.

However, the tech giant has been experiencing a downward trend in recent months, with its stock hitting a four-year low of 49,900 won. This decline is attributed to concerns over the potential scrapping of chip incentives by U.S. President-elect Donald Trump, disappointing earnings, and a negative outlook for the global semiconductor industry under the incoming Trump administration.

Samsung Electronics, the world's largest memory chip maker, has reportedly fallen behind its local competitor, SK hynix Inc., in the high bandwidth memory (HBM) segment. HBM chips are in high demand due to their crucial role in AI computing.

Samsung's Response to Market Challenges

In response to these challenges, Samsung announced a 10 trillion-won share buyback plan to be executed over the next 12 months. The company's shares jumped 7.21 percent to close at 53,500 won following the announcement. As part of this plan, Samsung intends to cancel 3 trillion won of shares within the next three months.

Furthermore, Samsung plans to buy back its own shares worth a combined 10 trillion won ($7.16 billion) over the next year to enhance its shareholder value following a recent slide in its stock price. The company's board of directors approved a plan to buy back a combined 3 trillion won of shares within three months starting Monday and continuing until February 17.

The company will decide on how and when to utilize the remaining 7 trillion won at subsequent board meetings. Historically, companies have used share buybacks as a strategy to increase shareholder value by reducing the number of outstanding shares, which in turn increases earnings per share and often leads to a higher stock price.

Global Market Impact and Samsung's Future Plans

In related news, foreign ownership of South Korean shares fell to the lowest level of the year following Donald Trump's presidential reelection. Foreign investors held 32.7 percent of KOSPI-listed stocks early this year, but the ratio continued to decline after rebounding to 36 percent in July.

Offshore investors have been in heavy selling mode this month after Trump won the U.S. presidential election, as his policies may hit hard chipmakers, automakers, EV battery makers, and others. The tech-heavy Nasdaq Composite reached a new high, breaching 17,000 for the first time as AI darling Nvidia continued its post-earnings tear to also reach a record of $1,140 a share.

In the midst of these developments, Samsung Electronics announced plans to expand its semiconductor package facilities in South Chungcheong Province to boost production of high bandwidth memory (HBM) chips. The company expects the upgraded facilities in Cheonan will help it regain a competitive edge in the global semiconductor market.

As the world continues to grapple with the economic implications of the U.S. presidential election and the ongoing COVID-19 pandemic, it remains to be seen how these factors will shape the future of Samsung Electronics and the broader tech industry.