Goldman Sachs Korea Top-Line Commentary: IBM's Plunge Validates Memory Shortage; Retail Investors Capitulate While Key S…

Goldman Sachs' Seoul team believes that IBM's 25% drop confirms that corporate clients are shifting capital expenditure toward memory purchases. The "Crowding Out Effect" is spreading to non-AI corporate buyers, confirming the breadth and depth of the memory shortage from a real-economy perspective, while memory suppliers' pricing power continues to strengthen. Korean stocks saw net buying by institutions at key support levels, with retail investors cutting losses and cleaning up the shareholder base. Constrained by equipment shortages, actual memory capacity expansion will fall far short of expectations. Goldman Sachs maintains its KOSPI target price of 12,000 points with a bullish stance