Goldman Raises Kospi Target to 12,000 as AI Chip Giants Drive 35% Upside
Updated
Updated · CNBC · Jun 3
Goldman Raises Kospi Target to 12,000 as AI Chip Giants Drive 35% Upside
1 articles · Updated · CNBC · Jun 3
12,000 is Goldman Sachs' new 12-month target for South Korea's Kospi, implying more than 35% upside even after the benchmark roughly doubled this year.
AI-linked chip earnings drove the upgrade, with Goldman citing higher profits, a longer memory-cycle runway and rerating catalysts while forecasting 60% EPS growth for Asia-Pacific equities in 2026.
SK Hynix and Samsung Electronics have powered much of the rally, but BTIG said the market's breadth has been negative in each of the past six sessions even as the Kospi gained 12.15%.
Korea's broader economy remains softer, with weak wage growth, sluggish job creation and higher energy costs complicating the outlook as equities and property prices climb.
Investors are still looking past those domestic vulnerabilities for now, keeping Korea tied closely to the regional AI and semiconductor trade.
Beyond the AI chip frenzy, what is Korea's real plan for its economic future?
With tech giants fueling its market, is South Korea's economy a house of cards?
Kospi’s 2026 Surge: Semiconductor Supercycle and AI Boom Drive Record Highs, But Risks Loom
Overview
As of June 2026, the Kospi market is experiencing significant optimism, driven by bullish forecasts from major financial institutions like Goldman Sachs. This positive outlook is rooted in expectations of higher corporate earnings, an underpriced memory cycle, and various catalysts that could boost market valuations. The rally is mainly fueled by a robust AI-driven semiconductor supercycle, which is propelling company profitability and supporting the market’s upward momentum. These factors together highlight how improving earnings and strong belief in Korea’s growth potential are underpinning the Kospi’s explosive performance.