Business
Goldman Sachs Sees 40% Upside in South Korea, Taiwan Markets as Chip Cycle Extends Beyond 2026
Earnings are the principal driver behind the benchmark index rallies in South Korea and Taiwan during 2026, according to Goldman Sachs. The investment bank argues the market still underestimates how long the current semiconductor cycle will persist.
Earnings Momentum and Valuation Upside
Goldman Sachs projects a 40% upside for both the South Korean and Taiwanese equity markets. The bank identifies corporate earnings as the primary catalyst propelling the Kospi and Taiex indices to their recent gains, rather than speculative flows or macroeconomic factors.Chip Cycle Longevity Underpins Forecast
The analysis highlights that the semiconductor cycle, which has fueled much of the regional rally, is expected to extend beyond 2026. Goldman Sachs believes current market pricing does not fully reflect the duration of chip demand, leaving room for further upward revisions to earnings estimates.Regional Market Divergence
While the Korean and Taiwanese benchmarks have achieved "breathtaking rallies" this year, Goldman Sachs attributes the outperformance specifically to earnings growth in technology and semiconductor-exposed sectors. The bank’s positive outlook for both markets hinges on continued chip cycle momentum.Market Context
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- Date: June 03, 2026