Goldman Sachs has cut its forecast for South Korea’s Kospi index by 25%. The move reflects growing caution over how much investors will pay for AI-related stocks.
Strategist Tim Moe lowered his target as AI valuations face pressure. A drop in the growth multiple investors accept for AI shares drove the revision.
Rising market volatility also played a role in the decision. Wilder price swings have made Korean equities harder to value with confidence.
The Kospi has served as a leading indicator for the global AI trade. Its heavy weighting in chipmakers ties it closely to AI demand trends.
Goldman’s cut signals a more guarded view on that trade. The bank now expects the index to climb less than previously projected.
The revision points to broader questions about AI stock premiums. Investors may be unwilling to sustain the multiples seen during the sector’s rally.
Korea’s market remains a key gauge for AI sentiment worldwide. Any shift in its outlook can ripple through global tech portfolios.
