Major investor aims to simplify buying Samsung stock in the US

You can't buy Samsung stock in the US like you would for any other major company. However, one major investor in Samsung Electronics is calling on the company to change that.

Artisan Partners has a 0.7% share in the company, worth roughly $5.6 billion at prevailing market prices. It's pushing Samsung Electronics to consider listing ADRs or American Depositary Receipts in the United States.

ADRs are certificates linked to a foreign company's domestic shares, and they trade on US markets. This enables foreign companies to tap into US equity markets, and it's a route several Korean companies have taken.

Even SK Hynix, one of the biggest beneficiaries of the AI-backed semiconductor boom and a top Samsung rival, has recently confirmed that it's launching ADRs in the United States. Investors in the US will then be able to easily have exposure to SK Hynix's stock performance.

Artisan Partners MD David Samra has said in an interview that he believes Samsung has been “actively evaluating the cost-benefit analysis of an ADR listing” for several years now. He believes SK Hynix's decision may motivate Samsung to do the same.

Korean stocks typically trade at a discount to US equities. Many analysts believe that listing ADRs will enable these companies to close the valuation gap with US companies in the sector, like Micron, which despite being in third place behind SK Hynix and Samsung Electronics enjoys a higher valuation simply because it's listed on US equity markets.

While Samsung does have global depository receipts listed in London, it's yet to comment on whether such a move is being considered for the US.