Retail Investors Keep 'Bargain Hunting' Despite Tech Weakness... AI and Semiconductors Correct, Bio Stocks Surge

Average Returns Fall in Both US and Korean Markets
Bargain Hunting Accelerates Amid Market Corrections
Increased Use of Leveraged and Inverse Strategies

In November of this year, both the US and Korean stock markets saw their average returns drop significantly compared to the previous month. However, the trend of investors viewing the correction as an opportunity actually intensified.

On December 11, Kakao Pay Securities announced these findings after analyzing the returns and the top purchased stocks among users who traded domestic and overseas stocks through its platform last month.

US Market: Continued 'Bargain Hunting' Despite Corrections in Nvidia and Tesla

According to Kakao Pay Securities, the average return for all US stocks last month was 3.6%, a sharp decrease from 11.1% in the previous month.

Weakness in artificial intelligence (AI) and semiconductor stocks dragged down returns. Nvidia (-13%) declined due to concerns over Google’s development of its AI chip, the Tensor Processing Unit (TPU). However, as the share price fell, bargain hunters stepped in, making it the most purchased stock. Tesla (-6%) also saw returns slow, but expectations for a low-cost model launch and robotaxi services next year helped it rank second in purchases.

Some stocks performed strongly due to individual positive factors. Alphabet (+14%) entered the top ranks for the first time as its share price rose on news of the release of Gemini 3.0 and increased investment in AI infrastructure. Other theme stocks such as MSP Recovery (+59%) and Nu Holdings (+14%) also ranked high in purchases.

The so-called "stock experts"-those who ranked in the top 10% for monthly returns for three consecutive months-posted an average return of 55.5%, lower than the previous month’s 78.6% but still far above the average user.

These investors employed a strategy of simultaneously using leveraged and inverse exchange-traded funds (ETFs). Both leveraged ETFs like SOXL (-14%) and NVDL (-25%), as well as inverse ETFs such as TSLQ (+6%) and NVDQ (+26%), were among the most purchased. Unlike October’s strong bullish bets, in November, these experts actively switched between long and short positions to respond to market volatility, marking the biggest change in their approach.

Korean Market: Semiconductors Stall as Bio Stocks Emerge as New Leading Theme

The domestic stock market was also unable to avoid a correction phase. In November, the average return for Korean stocks fell to 5.4%, about half of the previous month’s 9.2%.

As the semiconductor-driven rally from October lost steam, differences between themes became more pronounced. Large-cap semiconductor stocks like SK Hynix (-5%) and Samsung Electronics (-7%) underperformed, but they continued to be the top two most purchased stocks. Representative shipbuilding and industrial stocks such as Hanwha Ocean (-22%), Doosan Enerbility (-14%), and Ecopro (-4%) also declined, yet buying interest persisted.

In contrast, results varied among new growth themes. ABL Bio (+89%) surged on news of a technology transfer agreement with global pharmaceutical company Eli Lilly. Nota (+43%) entered the top ranks on expectations for on-device AI collaboration. Naver (-9%) showed weak share price performance despite news of its acquisition of Dunamu, but buying interest remained high.

The average return for domestic "stock experts" improved to 45.3%, up from 42.2% in the previous month. These investors maintained their semiconductor holdings while proactively adding bio stocks to their portfolios. Obesity and metabolic disease-related stocks such as D&D Pharmatech (+36%) and Peptron (+26%) attracted strong buying interest on expectations for clinical trial results. Notably, YTN (+53%) drew attention as a short-term momentum stock amid renewed government efforts to sell the company.

Kakao Pay Securities commented, "We assess the November market as a 'period of opportunity-seeking amid correction.' Even as tech stocks corrected, individual investors continued bargain hunting, while 'stock experts' strengthened their response to volatility by employing both leveraged and inverse strategies."

For more details on Kakao Pay Securities users’ investment trends in November, refer to the "Extremely Useful Investment News" section available under the "Securities" menu and "More" tab at the bottom of the Kakao Pay app.