Goldman cuts Kospi target 25% as AI trade unravels

· Economy · South Korea · United States

Goldman Sachs Group strategists slashed their target for South Korea's Kospi Index by 25%, after raising it repeatedly this year, as concerns over the artificial intelligence trade intensify, Bloomberg reported. The cut comes as AI stock declines weigh on China's self-reliance strategy and some investors warn more pain may be ahead for the AI trade. Zero-day option traders, meanwhile, are increasingly betting the S&P 500 will remain calm ahead of big AI earnings and central bank decisions.

Why it matters：The downgrade highlights how quickly AI-driven optimism can reverse and spill over into emerging markets.

Key points

  • Goldman cut its Kospi target by 25% after repeated increases this year.
  • The move reflects intensifying concerns over the AI trade.
  • Some investors warn more pain may be coming for AI stocks.

Sources (original reporting)

More stories from this day