Goldman Sachs Slashes KOSPI Target Amid AI-Investment Concerns

Goldman Sachs reduced its 12-month target for South Korea’s KOSPI index from 12,000 points to 9,000 points, a 25 % reduction. The bank still projects more than 60 % upside from the index’s current level of roughly 5,550 points.

Goldman Sachs Cuts South Korea's KOSPI 12-Month Target to 9,000 From 12,000 on AI Funding Concerns — BigGo Finance

The KOSPI has fallen more than 35 % since its June 22 peak of 9,114.55 points. The decline follows a broader sell-off in AI-related equities, especially memory-chip makers Samsung Electronics and SK Hynix, which carry heavy weightings in the index. Rising financing costs and doubts about the profitability of massive AI-infrastructure spending have amplified the weakness.

Goldman Sachs cuts Kospi target 25% to 9,000, still sees over 60% upside

• Forward price-to-earnings (P/E) ratio: About 4 × for the KOSPI, the lowest level among 18 major markets tracked by Bloomberg since 2006.

Goldman Sachs Cuts KOSPI Target to 9,000, Down 25% in Four Months

• Relative valuation: The KOSPI trades at roughly half the forward P/E of Indonesia’s market.

Goldman Sachs Cuts South Korea's KOSPI 12-Month Target to 9,000 From 12,000 on AI Funding Concerns — BigGo Finance

• Semiconductor earnings outlook: Goldman Sachs estimates current semiconductor valuations embed a scenario in which industry earnings fall 65 % by 2027.

Goldman Sachs Cuts South Korea's KOSPI 12-Month Target to 9,000 From 12,000 on AI Funding Concerns — BigGo Finance

• Non-memory sector: Companies outside the memory-chip segment represent about 50 % of the index and trade at a forward P/E of 7.6 ×.

Goldman Sachs cuts Kospi target 25% to 9,000, still sees over 60% upside

• Target upside: The 9,000-point target implies roughly 62 % upside from the current index level.

Goldman Sachs Cuts South Korea's KOSPI 12-Month Target to 9,000 From 12,000 on AI Funding Concerns — BigGo Finance

They argued that the index’s sharp decline has created deep undervaluation, making Korean equities attractive on a risk-reward basis. Preference was expressed for sectors such as power, industrials, companies tied to corporate-governance reforms, and firms poised to benefit from a domestic economic recovery and the global spread of Korean popular culture.

Goldman Sachs cuts Kospi target 25% to 9,000, still sees over 60% upside

The KOSPI serves as a barometer for investor sentiment toward AI-related infrastructure spending. A lower target signals caution among global investors, yet Goldman Sachs’ view that the market is overly pessimistic suggests potential buying opportunities for contrarian investors. The valuation gap between semiconductor and non-memory stocks could drive sector rotation, with capital shifting toward power, industrials, and domestic-focused companies if AI-related spending stabilizes.

Goldman Sachs cuts Kospi target 25% to 9,000, still sees over 60% upside

• “We lowered our target index to reflect more conservative assumptions about how the market assesses companies’ fundamentals, but Korean stocks remain attractive in terms of risk and return.” — Goldman Sachs

‘12,000->9,000’ Goldman Sachs cuts KOSPI target by 25% ... “Sticks to view that Korean stocks are undervalued”

Goldman Sachs indicated that future market direction will hinge on foreign-investor flows and evolving sentiment toward AI capital spending. No specific dates for follow-up analyses or policy actions were disclosed.

‘12,000->9,000’ Goldman Sachs cuts KOSPI target by 25% ... “Sticks to view that Korean stocks are undervalued”