Goldman Sachs Stands Firm on KOSPI Target Amid Memory Boom

Goldman Sachs' Asia-Pacific chief equity strategist Timothy Moe continues to maintain the bank's optimistic stance on the KOSPI, predicting it will reach 12,000 within the next year. This target was first set in early June and is based on the assumption that corporate earnings will remain strong.

Moe emphasized that the market is underestimating the duration of this earnings cycle, with a steep correction expected to be part of a long-term bull market. The bank's optimism is largely driven by the boom in memory semiconductors, which it believes will continue due to increased investment in artificial intelligence.

Goldman Sachs projects that next year's capital expenditure outlook for US big tech corporations will rise from $800 billion to $1.2 trillion, with a significant portion of this going towards building AI data centers. Moe noted that these hyperscalers must continue investing even if they fail to generate revenue, leading to increased demand for memory semiconductors.