Investors see buying opportunity in South Korean chip stocks

Global investors are eyeing South Korean chipmakers after a volatile July selloff, believing the leveraged unwind that hammered Samsung Electronics and SK Hynix is nearly complete. Fund managers say chip earnings and AI demand remain intact, despite Samsung shares nearly halving from June peaks. J.P. Morgan estimates hedge funds are about 90% through deleveraging, while losses from leveraged ETFs have sparked policy backlash.