Goldman Sachs Sticks to KOSPI 12,000 Target Amid Intensifying Memory Shortages

Goldman Sachs remains committed to its KOSPI target of 12,000, citing that South Korean memory semiconductor companies' earnings cycle duration is being underestimated. According to Timothy Moe, chief Asia-Pacific equity strategist at Goldman Sachs, 'We are still maintaining our KOSPI outlook issued last June, based on the judgment that earnings will be supported.'

Moe raised the KOSPI target from 9,000 to 12,000 in early June and characterized the June decline as a steep correction within a major bull market. He expects memory supply shortages driven by data center competition to intensify further next year.

The capital expenditure scale of U.S. Big Tech is expected to be revised upward from $800 billion to $1.2 trillion, with hyperscalers continuing to spend despite not making profits. This will drive computing demand that requires a massive amount of memory, benefiting companies like Samsung Electronics and SK Hynix.

Goldman Sachs pointed out risks from competitors such as China's CXMT and the possibility of political backlash against U.S. data center construction expansion.