Korean investors’ U.S. stock purchases surge 42-fold on Nvidia stock split

Korean investors have significantly increased their purchases of US shares, with a 42-fold rise over the past week, driven primarily by a surge in interest in Nvidia following its stock split announcement, reflecting growing enthusiasm for tech investments.

In a remarkable investment trend, Korean investors have ramped up their net purchases of U.S. stocks by an astonishing 42-fold over the past week, spurred by heightened interest in Nvidia’s upcoming stock split.

According to data from the Korea Securities Depository, Korean investors’ net purchases of U.S. stocks skyrocketed from a modest base to a substantial volume, with Nvidia shares being the primary driver of this increase. The announcement of Nvidia’s stock split, which is set to make the high-flying chipmaker’s shares more accessible to retail investors by lowering the per-share price, has generated significant excitement. Investors are often drawn to stock splits as they perceive them as signals of a company’s strong performance and future growth prospects, despite the split itself not adding intrinsic value.

Nvidia’s stock split is particularly noteworthy given the company’s pivotal role in the technology sector, where it leads in the development of graphics processing units (GPUs) and artificial intelligence (AI) technologies. The anticipated split has therefore fueled a buying frenzy among Korean investors, who are eager to capitalize on the potential for future gains. Over the past year, Nvidia’s stock price has seen substantial appreciation, reflecting its dominant position in the tech industry and its pivotal role in the burgeoning AI and data center markets.

The surge in U.S. stock purchases by Korean investors is also indicative of a broader trend where international investors seek diversification and exposure to high-growth sectors in the U.S. market. This trend has been further amplified by the robust performance of U.S. tech stocks, which have outpaced other sectors and geographic markets amid the global economic recovery.

The enthusiasm for Nvidia and other U.S. tech stocks is also supported by favorable foreign exchange rates, making US investments more attractive for Korean investors. With the Korean won relatively strong against the U.S. dollar, the purchasing power of Korean investors in the U.S. stock market has been enhanced, encouraging further inflows into American equities.

Furthermore, the ease of access to international markets through online trading platforms has facilitated this surge in cross-border investments. Korean investors, particularly younger, tech-savvy individuals, are increasingly leveraging these platforms to invest in prominent US companies that are at the forefront of technological innovation.