Goldman Sachs: Korean AI Stock Sell-off Overdone, Storage Thesis Intact

Goldman Sachs maintains overweight on Korea, citing persistent storage demand. The bank views the recent decline as deleveraging, not a fundamental shift, with supply tensions expected through 2030.

Woofun AI reports that Goldman Sachs maintains its overweight stance on the Korean stock market, characterizing the recent sharp decline in AI-related equities as overdone. The bank attributes the price drop primarily to position unwinding and deleveraging rather than a disruption of the underlying fundamental thesis.

Goldman Sachs emphasizes that AI computing power continues to drive demand for DRAM, HBM, and NAND, creating long-term supply-demand tension that may persist until 2030. With Samsung Electronics and SK Hynix comprising roughly half of the KOSPI weight, the Korean market serves as a high-beta proxy for the global AI hardware cycle. The bank notes that strong pricing power allows storage manufacturers to quickly magnify profit elasticity due to high operating leverage.