Key facts
- Chipmaker shares have surged in the first half of 2026 due to high demand for AI hardware.
- Samsung's share price jumped 183% and SK Hynix rose 310% year-to-date.
- Sandisk shares are up 780% in 2026, with Western Digital up 240%, Micron up 296%, and Seagate up 226%.
- Microsoft shares have fallen 24% in 2026 as investors moved to hardware stocks.
- The S&P 500 gained 7.4% in the first half of 2026.
- Brent crude oil ended June approximately $12 higher than at the start of the year.
Shares in chipmakers have surged in the first half of 2026 as investors have heavily invested in companies providing the hardware for the artificial intelligence boom. This trend has led to significant profit increases for semiconductor and memory chip manufacturers, while some major software companies have seen their valuations decline.
Several chip companies have experienced share price increases of 300% or more since the beginning of the year, contributing to a sharp rise in Asia Pacific stock markets. South Korea's Kospi index, for example, has recorded its strongest first half since at least 1990, with Samsung's stock up 183% and SK Hynix up 310% year-to-date. Both companies have reported a substantial increase in demand for chips to power data centers for AI applications.
US chipmakers have also been highly sought after. Sandisk shares have risen 780% in 2026 and 4,510% over the past 12 months. Western Digital has gained 240% this year, while Micron is up 296% and Seagate has risen 226%.
Dan Coatsworth, head of markets at AJ Bell, noted that these gains are exceptional, stating, "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."
Apple has attributed increased prices for its iPad and MacBook to the rising cost of memory chips. The company is also reportedly seeking approval to purchase memory chips from CXMT, a Chinese firm blacklisted by the Pentagon.
In contrast, hyperscalers rolling out AI services have seen their stock prices fall recently as investors shifted capital from software to hardware. Microsoft, for instance, is down 24% in 2026 and recently hit a one-year low. Some investors are reportedly hesitant due to the substantial spending plans announced by leading AI companies, which could increase borrowing and impact cash flow.
Recent signs suggest the chip stock boom may be cooling, with some shares pulling back from recent highs as investors rotate into other sectors. Chris Beauchamp, chief market analyst at IG, observed, "Having piled in to AI and tech since the end of March, there is a desire to protect profits, and investors continue to be in a mood to sell first and ask questions later."
Broader market performance in the first half of 2026 included Japan's Nikkei climbing 38% and the UK's FTSE 100 gaining 5.8%. The FTSE 100 experienced a pullback from a February high due to the Iran war, but was supported by takeover offers for several companies. Brent crude oil ended June approximately $12 higher than at the start of the year, having doubled in price by late April due to supply concerns related to the closure of the Strait of Hormuz.
The US S&P 500 index rose 7.4% in the first half of 2026, reaching 7,354 points. Mark Haefele, chief investment officer at UBS Global Wealth Management, anticipates further growth, projecting the S&P 500 to reach 8,200 points by June 2027, citing continued AI capital expenditure, a resilient US economy, global fiscal spending, and strong credit creation.