Goldman Sachs Group Inc. raised its 12-month target for South Korea's Kospi index to 12,000 points and upgraded Taiwan's market to "Buy" on Wednesday [1, 2].
This shift reflects the intensifying rally in North Asian markets as the artificial-intelligence boom accelerates earnings growth for semiconductor companies. The move signals a strong institutional conviction in the region's role as the primary hardware provider for AI infrastructure.
The bank cited a memory-cycle upside created by high demand for AI chips [1, 4]. This growth is specifically benefiting major players including Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing Co. [1, 4].
"We lean into North Asia where earnings growth is strongest," Goldman Sachs said in a note [5].
Market performance in the region has already seen significant momentum. The Taiex has risen 60% year-to-date [3], while the Kospi has doubled in value over the same period [3]. As of June 3, the Kospi index level stood at 8,900 KRW [6].
Analysts at the firm forecast a potential 40% jump [6] for the Kospi, with some estimates suggesting an additional 35% upside [7]. Other data points indicate the index has seen a 12-month gain of 220% [6].
Despite the optimistic targets, the firm cautioned that the rapid ascent may create volatility. "Gains for AI chipmaker stocks can continue, but risks of a pullback are growing," Goldman Sachs said [5].
“"We lean into North Asia where earnings growth is strongest."”
The upgrade suggests that institutional investors view the AI-driven semiconductor cycle as a structural shift rather than a temporary spike. By raising targets for both the Kospi and Taiex, Goldman Sachs is betting that the synergy between South Korean memory chips and Taiwanese logic chips will sustain a regional bull market, though the warning of a pullback indicates a concern over overextended valuations.
