Goldman Sachs: Korean AI Stocks Have Overreacted to Recent Sell-Off, Fundamental Logic Remains Intact

BlockBeats News, August 6 — Goldman Sachs has not shifted its stance on the Korean AI chain despite the recent sharp decline. Its latest view suggests that the sell-off in Korean AI-related stocks has been excessive. The firm continues to maintain an overweight position in the Korean stock market and sees the memory cycle as the core support for this round of market activity. Goldman Sachs believes that the recent downturn is more reflective of position and leverage unwinding, rather than a disruption of fundamental logic. The firm's core rationale remains the sustained demand for DRAM, HBM, and NAND driven by AI computing power. Goldman Sachs argues that AI servers, cloud providers' capital expenditures, and high-bandwidth memory demand are creating longer-term supply-demand tensions, with the market yet to fully account for the possibility of memory chip shortages persisting until 2030. Given the high operating leverage of memory manufacturers, profitability elasticity could expand rapidly if prices remain strong. This explains why Goldman Sachs remains bullish even after the sharp decline in the Korean market. Samsung Electronics and SK Hynix together account for roughly half of the KOSPI's weight, making the Korean stock market essentially a high-beta expression of the global AI hardware cycle. For U.S. equity investors, this logic also extends to Micron, SanDisk, Western Digital, and the semiconductor equipment chain. While recent volatility in AI stocks has intensified, as long as cloud providers' capital expenditures do not show significant deceleration, memory remains the most direct beneficiary within AI infrastructure.