A fund management firm with its largest holding in Samsung Electronics is urging the Korean company to pursue a listing in the United States, stating that such a move would boost the chipmaker's valuation. Artisan Partners, which held a 0.7% stake in Samsung at the end of last year, is pushing for similar action after SK Hynix announced this week that it had applied to issue American Depositary Receipts (ADRs). David Samra, Managing Director at Artisan, suggested that Samsung should follow the lead of its smaller competitor. In an interview on Wednesday, Samra expressed hope that SK Hynix's decision would "encourage Samsung to do the same." He noted that Artisan believes Samsung has been "actively assessing the cost-benefit analysis of an ADR listing for years." A representative for Samsung declined to comment. The CEO of SK Hynix has promoted the US listing plan this week, stating it would help narrow the valuation gap with global peers. Both chipmakers have been key drivers behind the South Korean stock market's global outperformance—the benchmark Kospi index has more than doubled over the past year, with Samsung rising 181% and SK Hynix surging 329%. Samra pointed out that "the average US retail investor simply cannot buy Samsung stock" due to the inability to trade shares listed in Korea. He oversees more than $50 billion in assets. Samsung has been one of the biggest global beneficiaries of the memory chip boom. While SK Hynix aims to raise capital through its ADR issuance, Samra believes valuation, rather than funding needs, is the primary motivation for Samsung to consider a US listing. Samsung announced this month that it plans to invest over 110 trillion won (approximately $730 billion) in chip capacity expansion and research and development this year—a record amount aimed at securing leadership in AI semiconductors. Other Asian companies that have benefited from US listings include fellow chip giant Taiwan Semiconductor Manufacturing. Its ADR issuance has enabled it to attract foreign investor inflows, solidifying its favored status among US investors, particularly during the AI-driven rally. In addition to active investors, substantial passive inflows from US-listed ETFs have further elevated its valuation compared to shares listed in Taipei. At one point last year, the price gap between the two markets exceeded 30%. Taiwan Semiconductor Manufacturing raised $520 million through an ADR issuance in 1997; its total market capitalization now approaches $1.7 trillion. Samra remarked, "They get a better valuation simply because more liquidity flows into the stock. I think the investor community will have better access to information flow." Artisan, which focuses on investing in companies outside the US, stated that it has held Samsung shares for over a decade. Market-compiled data show that Samsung is the top holding in Artisan's International Value Fund as of 2025, and the firm is also one of the top ten fund holders of the Korean chipmaker. Artisan does not hold shares in SK Hynix. Samra noted that after nearly tripling in price over the past year, Samsung is no longer cheap. The stock currently trades at less than three times its book value, while its largest US competitor, Micron Technology, trades at under five times. Samra commented, "We think the current price is reasonable. So we don't see a large margin of safety. But we also don't think it's overvalued." Samsung currently has global depositary receipts listed in London, following its delisting from Luxembourg at the end of 2024.
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