The world’s best-performing stock market has already doubled this year. Goldman Sachs now projects a further 40% gain from current levels.
Earnings are the primary driver behind the stunning rallies in Korean and Taiwanese benchmark indices during 2026. Goldman Sachs believes the market continues to underestimate how long the chip cycle will last.
The investment bank’s analysts point to strong semiconductor demand as a key factor. This sector has propelled both markets to new heights.
South Korea’s Kospi index has surged over 100% this year. Taiwan’s Taiex index has posted similar gains.
Goldman Sachs expects the chip cycle to remain robust for several more quarters. The bank’s forecast suggests significant upside remains for investors.
The rally has been fueled by global demand for memory chips and advanced semiconductors. Companies in both countries have reported record profits.
Goldman Sachs cautions that risks remain, including geopolitical tensions and potential supply chain disruptions. However, the bank’s overall outlook stays bullish.
Investors should monitor earnings reports closely in coming months. These will determine if the projected gains materialize.
