Shares in chipmakers supporting the AI boom surged sharply in the first half of 2026, with some rising multiple-fold since January, fueling major market rallies in Asia and the US [1, 2, 3]. South Korea's Kospi index gained between 104% and 125% this year, driven by Samsung shares rising 183% and SK Hynix up 310% [1, 2]. In the US, chipmakers recorded even greater gains: Sandisk rose 780% in the year and 4,510% over the past 12 months, while Western Digital gained 240%, Micron 296%, and Seagate 226% [1]. Taiwan's tech-heavy benchmark advanced over 3% on June 30 with TSMC up 3.2%, lifting the index 60% year to date [2]. The MSCI Emerging Markets Asia index rose 1.8% on June 30, on pace for its strongest quarterly gain since 2009 with a 30.4% jump in Q2 [2].
Meanwhile, shares in large software and hyperscale AI service companies fell, with Microsoft down 24% so far in 2026 [1]. Apple attributed rising memory chip costs as a factor behind recent price increases for iPads and MacBooks and is seeking clearance to buy chips from a Chinese supplier blacklisted by the Pentagon [1]. Dan Coatsworth, head of markets at AJ Bell, said, "Demand exceeding constrained supply led to a surge in memory chip prices and took suppliers’ shares on a spectacular ride upwards. Higher selling prices and greater demand is a powerful cocktail for explosive earnings growth" [1].
Zavier Wong, market analyst at eToro, noted, "There are a handful of chip stocks doing most of the heavy lifting across AI. It's still worth watching whether the rally broadens beyond names like TSMC, Samsung, SK Hynix, because the same concentration that's driving the gains is also where the risk sits if AI-linked demand cools" [2]. Despite geopolitical tensions and external shocks like the Iran war, markets continued to rally, according to JJ Kinahan of Cboe Global Markets, who said, "The markets have proven to be the ultimate grinder as they keep crushing it, despite a lot of hand-wringing" [3].
US economic data in late June remained resilient, supporting optimism for corporate earnings going forward [3]. However, the Federal Reserve held interest rates steady in June but may raise them later this year to control inflation [3]. Cleveland Fed president Beth Hammack said the bank might need more rate hikes, as "She sees little evidence current interest rates are restraining the economy and that the central bank may need to raise borrowing costs to return inflation to its 2 per cent target" [3].
Not all Asian markets shared the gains. Indonesia's stock market tumbled over 3% recently and has fallen 34% year to date, marking its worst first half on record [2]. On July 1, Brent crude oil prices hovered around $73.50 per barrel, and US Treasury yields fell during the session [3]. Asian shares rose on July 1 after US tech gains boosted sentiment and lifted the MSCI Asia-Pacific index by 0.3% [3].
