Goldman Sachs Stands Firm on 12,000 Kospi Target Amid AI-Fueled Boom

Goldman Sachs has reaffirmed its target of 12,000 for South Korea's Kospi index, predicting an 80% upside from its current level. This forecast is based on a 12-month forward price-to-earnings ratio of 7.5 times, with the Kospi currently trading at a forward P/E of 5.3 times.

The bank attributes the strength in the memory-chip industry to expanding artificial-intelligence investment by U.S. Big Tech companies, which will drive prices higher and create shortages of memory and storage semiconductors.

Goldman Sachs expects earnings at Kospi-listed companies to jump about 360% this year and grow about 35% in 2027, citing a global race to build data centers as the main driver of demand for advanced memory chips.