Foreign investors bought $1.7 billion of Taiwanese stocks this month while selling $6.2 billion of South Korean equities, as money returned to AI- and semiconductor-linked markets after last month's selloff but shifted toward Taiwan's lower-volatility profile. Bloomberg said investors rebuilding exposure to the sector are favoring Taiwan for its broader IT hardware and semiconductor supply chain, anchored by TSMC, while South Korea remains more concentrated in memory chips through Samsung Electronics and SK hynix and is seen as more exposed to leverage-driven swings. The reversal has also shown up in market performance and earnings expectations: as of the 10th, the Taiex was up 55.1% this year versus a 46.2% gain for the KOSPI, and 12-month forward earnings estimates rose 9.5% for Taiex-listed companies over the past month compared with 7.4% for KOSPI-listed firms, the first time in about a year that Taiwan's upward revisions outpaced Korea's. Some investors still argue Korea looks attractive on valuation after a deeper correction, with the KOSPI's 12-month forward price-to-earnings ratio recently falling to 5.1. Analysts say the longer-term divide between the two markets will depend on whether heavy spending on AI infrastructure translates into durable earnings growth.