Key facts
- Memory chip manufacturers like SanDisk, Western Digital, Micron, and Seagate saw massive gains in the first half of 2026.
- Companies supporting AI infrastructure, including Intel, Dell, AMD, and Applied Materials, also experienced significant stock price increases.
- Major Asian stock indices like South Korea's KOSPI and Japan's Nikkei 225 benefited from the AI rally.
- Gold and Bitcoin experienced substantial losses, with gold falling 28% from its peak and Bitcoin down 28% year-to-date.
- Previous AI leaders Meta and Microsoft saw their stock prices decline.
- UK companies attracted takeover interest, while housebuilders and defence stocks faced headwinds.
The first half of 2026 saw a significant divergence in investment performance, with assets tied to the physical infrastructure of artificial intelligence experiencing substantial gains, while cryptocurrencies and gold faltered.
According to Dan Coatsworth, head of markets at AJ Bell, companies involved in the AI spending boom were the standout investments, while Bitcoin proved to be a "shocker" and gold lost its appeal. This trend occurred against a backdrop of geopolitical tensions, political upheaval, and a spike in oil prices, yet several global stock markets still reached new record highs.
The most dramatic gains were seen in the memory chip sector, driven by the collision of high demand for AI computing and tight supply. SanDisk led the US market with an increase of over 850% in six months. Western Digital, Micron Technology, and Seagate Technology all more than tripled in value, returns that would typically take many years.
Other US equities that benefited from the AI trade included Intel, Dell, Advanced Micro Devices (AMD), and Applied Materials, with gains ranging from 150% to 280% year to date. This surge also boosted emerging markets, particularly Asian chipmakers like TSMC and SK Hynix, contributing to South Korea's KOSPI doubling and Japan's Nikkei 225 climbing approximately 40%. The MSCI Emerging Markets index rose by about 27%.
In Europe, the FTSE 100 gained 7%, the CAC 40 rose 5%, and Germany's DAX increased by 2%. However, the MSCI India index fell 5%, and Hong Kong's Hang Seng lost 6%.
In contrast, previous AI leaders such as Meta and Microsoft experienced declines, down 14% and 24% respectively. Investors shifted away from these tech giants, viewing them as more capital-intensive businesses and no longer willing to pay a premium.
Gold experienced a volatile ride, falling approximately 28% from its peak of $5,594.82 per ounce on January 29, despite geopolitical turmoil that typically drives investors to safe-haven assets. Higher bond yields and cash rates, which offer income, undermined gold's appeal.
Bitcoin fared worse, dropping 28% since the start of the year as enthusiasm for crypto waned and funds rotated into technology shares. In the UK, takeovers were a significant driver, with six FTSE 100 companies, including Glencore, Schroders, and Segro, attracting bid interest.
Housebuilders like Persimmon struggled due to a sluggish property market, while tech-adjacent companies such as Experian and RELX were affected by fears of AI disruption. The defence sector, after a strong 2025, saw stocks like BAE Systems, Rheinmetall, and Palantir give ground as rising military budgets appeared fully priced in.