[Edaily Reporter Shin Ha-yeon] KOSDAQ semiconductor materials, parts, and equipment (MPE) stocks, which had been weighed down by supply-demand imbalances centered on large-cap semiconductor stocks, are beginning to show signs of recovery. This comes as foreign buying interest spreads to KOSDAQ MPE stocks amid continued expectations for expanded investment in artificial intelligence (AI) semiconductors and an improvement in the memory market.

According to MP Doctor on the 14th, semiconductor materials, parts, and equipment stocks have dominated the list of top KOSDAQ stocks with the highest net foreign buying this month (1st–12th). The KOSDAQ stock that foreign investors have purchased the most this month is #Rino Industrial, with net buying reaching 580 billion won.

Following that, four of the top five stocks by net buying—#Padu (151 billion won), #HPSP (106 billion won), and #Techwing (99 billion won)—were materials, parts, and equipment stocks. Buying momentum also continued for #RFHIC (42 billion won), #Daeju Electronic Materials (39 billion won), and #Seojin Systems (32 billion won).

The stock price trends for these companies are also positive. During this period, the average return for these four stocks was 21.12%, significantly outperforming the KOSDAQ index’s return of -4.26% over the same period. Among the KOSDAQ indices, the KOSDAQ 150 Information Technology Index and the Machinery & Equipment Index—both composed of major semiconductor materials, parts, and equipment stocks—rose by 15.52% and 14.34%, respectively, marking the only double-digit returns this month.

The positive momentum appears to be spreading across the entire semiconductor value chain, encompassing front-end and back-end equipment, test components, and materials, regardless of specific sub-sector. In contrast, foreign investors net sold 10.679 trillion won worth of #SamsungElectronics and 5.148 trillion won worth of #SKHynix this month.

Analysts in the securities industry note that the relative undervaluation of semiconductor equipment, parts, and materials stocks is becoming increasingly attractive. They explain that while stock price gains have been concentrated on large-cap stocks this year amid expectations of a semiconductor supercycle, a rotation toward equipment, parts, and materials companies with high visibility for earnings improvement has recently emerged.

In particular, as investments in next-generation semiconductors continue to expand, expectations are growing that KOSDAQ companies within the related value chain—such as high-bandwidth memory (HBM), AI servers, and solid-state drives (SSDs)—will benefit. Analysts note that the prospect of AI semiconductor demand driving investment by memory companies could accelerate the earnings recovery of materials, parts, and equipment firms, thereby bolstering investor sentiment toward these stocks.

Lee Dong-ju, an analyst at SK Securities, emphasized, “Following the first-quarter earnings announcements, upward revisions to 2026 and 2027 estimates have been observed across the entire materials, parts, and equipment sector,” adding, “What is particularly noteworthy is that the upward revision for 2027 was significantly larger than that for 2026.” He further noted, “The market is also increasingly anticipating the ramp-up of DRAM and NAND investments in 2027, as well as capacity expansions in that year.”

The explanation is that as the recovery in the semiconductor industry, driven by rising prices, leads to increased sales volume and the resumption of capital investment, demand could spread to small and medium-sized component and material stocks for the time being.

Lee Eun-taek, an analyst at KB Securities, noted, “Looking at returns over the past week, the KOSDAQ has shown relative strength, and among ‘AI-related sectors,’ semiconductor materials, parts, and equipment stocks have performed strongly,” adding, “Short-term buy signals have been detected in the KOSDAQ 150 and AI-related semiconductor materials, parts, and equipment stocks.”

Han Yong-hee, an analyst at Growth Research, also emphasized, “The semiconductor industry is shifting from a phase where price (P) increases drove profit improvement to one where sales volume (Q) expansion and capital investment are driving earnings,” adding, “We expect to enter a phase where the trickle-down effect spreads to small and mid-cap companies as we move into the second half of the year.”