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Goldman Sachs strategists cut their 12-month target for South Korea's Kospi index to 9,000 from 12,000, a 25% reduction. According to a report on October 25, 2026, this is Goldman's first significant cut this year after multiple target upgrades, citing heightened concerns over the artificial intelligence trade; Goldman said that after the benchmark index fell more than 35% from its June high, more conservative valuation assumptions are needed, but the revised target still implies more than 60% upside from current levels. Chip giants such as Samsung Electronics and SK Hynix have made the Kospi a bellwether for the AI trade, and its forward 12-month price-to-earnings ratio has fallen to about 4 times. A follow-up report on October 26 said Goldman also noted that current semiconductor sector valuations imply an expected 65% decline in 2027 earnings, which represents overly pessimistic pricing; the Kospi's 12-month forward price-to-earnings ratio of about 4 times is a low not seen among 18 trillion-dollar-scale markets since 2006.
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Tech Earnings Week Arrives, Major U.S. Stock Indexes Open Broadly Higher, Petrobras Plunges Over 17%Developments
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Oct 26
Wallstreetcn
Tech Earnings Week Arrives, Major U.S. Stock Indexes Open Broadly Higher, Petrobras Plunges Over 17%
Tech giants including Microsoft, Alphabet and Amazon will report earnings successively this week, and whether AI infrastructure investment can be sustained will face market scrutiny. The three major U.S. stock indexes opened broadly higher, with the Dow up 0.2%, the S&P 500 up 0.25%, and the Nasdaq up 0.28%. Lula's surprise victory in Brazil's election triggered market turmoil, with Petrobras plunging over 17%, and Brazil ETFs listed in Japan once plummeting 16% during intraday trading. Both the Federal Reserve and the Bank of Japan will announce interest rate decisions this week, and Brent crude fell 1.5% from a six-month high to about $114.95 per barrel.
Wallstreetcn
Goldman Sachs cuts Korea's KOSPI target price by 25% to 9,000 points, but says memory chip valuations are overly pessimistic
Goldman Sachs lowered its 12-month target for South Korea's KOSPI index from 12,000 to 9,000 points, a 25% cut, citing the need for more conservative valuation assumptions after the benchmark index plunged more than 35% from its June high. Goldman Sachs also noted that current semiconductor sector valuations imply an expected 65% earnings decline in 2027, which constitutes overly pessimistic pricing, and that the revised target still implies more than 60% upside from current levels. The KOSPI's 12-month forward price-to-earnings ratio has fallen to about 4x, a low not seen among 18 trillion-dollar markets since 2006, and roughly half the 8x P/E of Indonesia's Jakarta Composite Index.
Oct 25
Sina Tech
Goldman Sachs Cuts South Korea's Kospi 12-Month Target by 25% as AI Trade Concerns Intensify
Goldman Sachs strategists lowered their 12-month target for South Korea's Kospi index to 9,000 from 12,000, a 25% cut and the first significant downgrade this year after multiple upward revisions. Goldman said more conservative valuation assumptions are warranted after the benchmark fell more than 35% from its June high, though the revised target still implies more than 60% upside from current levels. Chip giants such as Samsung Electronics and SK Hynix have made the Kospi a bellwether for the AI trade, and its forward 12-month price-to-earnings ratio has fallen to about 4 times.
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