Goldman Sachs Sticks to Bullish KOSPI Forecast Amid AI Demand Boom

Goldman Sachs is maintaining its bullish stance on the South Korean stock market, with Chief Asia Pacific Regional Equity Strategist Timothy Moe sticking to his prediction of a 12,000-point target for the KOSPI index. This would represent nearly 80% upside potential from current levels.

Moe believes that investors are underestimating the boost from AI infrastructure investment to the earnings cycle of South Korean memory chipmakers, such as Samsung Electronics and SK Hynix. He expects this wave of demand growth to persist for several years.

The market has been under pressure due to concerns over the sustainability of AI capital expenditures by global tech giants. However, Moe argues that these companies must continue to ramp up infrastructure spending to maintain their computing power and market competitiveness.