BUBBLE IS BURSTING--> KNOW, WHY INDIAN IT IS BOOMING...BUT!

AI FATIGUE HITS KOREA: GOLDMAN SACHS CUTS KOSPI TARGET BY 25% — WHY THIS MATTERS FOR INDIA The AI rally is facing a reality check. But Goldman Sachs still sees significant recovery potential in South Korean equities. Goldman Sachs has cut its 12-month target for South Korea’s benchmark KOSPI index to 9,000 from 12,000, a 25% reduction, as concerns grow over AI valuations, heavy infrastructure spending and the time required to generate returns from that investment. The revised target still implies more than 60% upside from the levels cited in the report. <Cite refs={["turn169652search0","turn169652search1"]}/> 1. Why Has Goldman Cut Its Target? AI spending is enormous — but returns are under scrutiny The global AI boom has fuelled demand for advanced chips, memory and data-centre infrastructure. However, investors are increasingly questioning whether the returns from this investment will justify the cost. --->How Could This Benefit India? The important distinction: a correction in Korean AI stocks does not automatically benefit Indian equities. The potential advantage depends on where global investors move their money and whether India's IT companies can capture more technology spending. Potential areas of opportunity 1. Indian IT services Stocks to watch: TCS, Infosys, HCLTech,

and Tech Mahindra If global investors rotate away from expensive AI hardware stocks, established IT services companies could attract selective interest. Indian firms may also benefit from demand for AI integration, cloud migration, automation and enterprise technology services. --->The Bigger Opportunity: AI Is Not the Same as AI Stocks A distinction investors should remember: AI adoption can continue growing even when AI-linked share prices fall. Chip demand may remain strong, but investors may pay lower valuations for the same earnings. Indian IT companies may gain new AI-related work, but automation could also put pressure on traditional billing models.