economy
Shares in chipmakers underpinning AI boom rocket in first half of 2026
Value of some chip manufacturers have tripled, or more, driving Asia Pacific stock markets sharply higher
TL;DR
- Chipmaker stocks have surged in the first half of 2026 due to investor interest in AI hardware.
- The share prices of some chip companies have tripled or more, significantly boosting Asia Pacific stock markets.
- South Korea's Kospi index saw its strongest first half since at least 1990, driven by Samsung and SK Hynix, which reported increased demand for AI data centers.
- US chipmakers like Sandisk, Western Digital, Micron, and Seagate have also experienced substantial stock price increases.
- Demand for memory chips has risen, contributing to price hikes and increased earnings for suppliers.
- Hyperscaler companies rolling out AI services have seen their shares fall as investors shifted from software to hardware stocks.
- Some investors are concerned about the large spending plans of AI companies, which increase capital intensity and borrowing.
- There are recent signs that the chip stock boom may be faltering as investors rotate out of tech.
- Overall stock market gains were solid in the first half of 2026, with Japan's Nikkei climbing 38% and the UK's FTSE 100 gaining 5.8%.
- Brent crude oil prices have increased, with a significant spike in April due to supply concerns.
- The US S&P 500 index has gained 7.4% so far this year, with predictions of further climbs.