Goldman Sachs Raises Emerging Markets' Target on AI-Driven China Rally
Goldman Sachs has raised its 12-month target price for emerging markets stocks, projecting that the AI-powered rally in Chinese equities could boost other markets as well. The brokerage's MSCI Emerging Markets Index target was increased by 3%, reaching 1,220, indicating an 11% potential upside from current levels. Goldman Sachs attributes this increase to its adjustment of its MSCI China target, driven by the impact of AI adoption on valuations through earnings, multiples, and portfolio flows.
- The spillover effect of a strong Chinese equities rally into other emerging markets highlights the importance of understanding technological disruption in shaping investment strategies.
- How will policymakers address concerns about market volatility and potential asset bubbles in emerging markets as they respond to this growing trend?