JPMorgan calls for another 77% rise! Raises KOSPI target to 15,000 points: AI hardware cycle continues, South Korea remains Asia's top market.

JPMorgan fully raises its 12-month target price for the Korean stock KOSPI index across the board, with a bull-case scenario pointing to 15,000 points—surpassing Goldman Sachs and KB Securities’ 12,000-point forecasts, making it the most optimistic prediction in the market.
(Background: The largest ADR listing deal ever! SK Hynix plans to list in the US to raise $29.4 billion)
(Background supplement: South Korea’s Financial Supervisory Service: deeply regrets allowing the leveraged ETF for Samsung and SK Hynix)

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• All Three Target Prices Raised, Bull Case Sees 15,000 Points
• AI hardware profits have reached a scale of “macroeconomic significance”
• Leveraged ETFs boost volatility, Korean stocks “reap what they sow”
• Beyond memory chips, JPMorgan is also bullish on these areas

JPMorgan (JPMorgan) released its Korea equity strategy report on Thursday, fully raising its 12-month target price for the Korea Composite Stock Price Index (KOSPI). The base-case target rises to 12,500 points; the bull-case target is 15,000 points; and the bear-case target is 8,000 points. At the same time, it kept its highest rating that “Korea is the top preferred market in Asia,” and advised investors to “add more on dips while maintaining maximum exposure to Korean stocks.”

All Three Target Prices Raised, Bull Case Sees 15,000 Points

According to a report by The Korea Herald Business, JPMorgan strategist Mixo Das explicitly pointed out in the report that Korea’s stock fundamentals are closely tied to the AI cycle. The analyst remains optimistic about a “longer, stronger” memory chip cycle.

Comparison table of the three target prices:

• Base case: 12,500 points (raised)
• Bull case: 15,000 points (raised, representing 77% upside from the current level of approximately 8,471 points)
• Bear case: 8,000 points (raised)

The bull-case target of 15,000 points has already exceeded KB Securities and Goldman Sachs’ forecast of 12,000 points, becoming the most favored target price for Korean stocks.

AI hardware profits have reached a scale of “macroeconomic significance”

In the report, JPMorgan identified the core driver: investments in AI data centers are driving profit growth for hardware companies, and the profit pool for technology companies participating in AI data center construction has expanded to a “scale of macroeconomic significance.”

“We maintain a constructive view on AI, and the earnings of related hardware companies continue to improve,” JPMorgan strategists wrote in the report.

Leveraged ETFs boost volatility, Korean stocks “reap what they sow”

JPMorgan also cautioned that the high volatility in the Korean market may persist. The report states that the total assets under management of leveraged ETFs tracking Korean assets has climbed to $50 billion, significantly amplifying market swings. The expansion of futures and options strategies alongside spot positions has rapidly inflated the domestic derivatives market, and demand for inverse ETFs has also pushed implied volatility higher.

Regarding foreign selling pressure, JPMorgan described Korea as “a victim of its own success”: the market caps of memory-chip leaders Samsung Electronics and SK Hynix have surged, beginning to approach the position limits of emerging-market investors. This creates a structural dynamic where, once a stock rises, it must be passively trimmed.

Beyond memory chips, JPMorgan is also bullish on these areas

In addition to AI hardware, the report also lists multiple alternative investment themes:

• Silver industry: the interest-rate environment supports net interest margins
• Biotechnology and pharmaceuticals: new drug pipelines are entering clinical validation in dense batches
• Preferred shares: attractive dividend appeal
• Groups benefiting from the “wealth effect”: department store retail, cosmetics, travel, securities firms, and construction

JPMorgan emphasized that although foreign selling pressure and market volatility may continue in the short term, global investors’ allocation to Korea remains relatively low, leaving room for further increases in buying demand.