Did investors and analysts underestimate the role Samsung, SK Hynix, and other South Korean companies in the global AI trade?
JPMorgan has now raised its bull-case target for the Kospi to 10,000, up from 9,000. That would imply more than 25% upside from current levels.
South Korea’s equity market has become increasingly tied to AI, with chip stocks now making up around half of the Kospi’s total weight. Those stocks have driven roughly 70% of the index’s gains this year. The Kospi is up more than 80% this year, following a 76% advance in 2025.
“Korea remains our most preferred market in the region and we raise our base/bull/bear case Kospi targets to 9,000/10,000/6,000,” JPMorgan strategists said.
Still, the bank noted that the market looks technically stretched after such a sharp move, meaning periods of consolidation are likely.
Other major banks have also turned more bullish. Goldman Sachs raised its 12-month base target for the Kospi to 9,000 from 8,000, while Citi lifted its target to 8,500 from 7,000.
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