New Delhi, Oct. 26 -- After a series of upgrades, global brokerage firm Goldman Sachs has trimmed its 12-month target for South Korea's KOSPI index to 9,000 points from 12,000, marking a 25% reduction. The brokerage cited concerns over the sustainability of the artificial intelligence (AI) trade and a sharp retreat in Korean chip stocks.

Analysts, including Timothy Moe, lowered their 12-month target for South Korea's benchmark equity index, adopting more conservative valuation assumptions after the benchmark plunged more than 35% from its June peak. According to Bloomberg, the selloff has left Korean equities significantly undervalued, and the revised forecast still implies more than 60% upside from current levels.

Goldman Sachs last ra...