Shares in chipmakers underpinning AI boom rocket in first half of 2026

· Source: AI (artificial intelligence) | The Guardian · Field: Finance & Economics — Capital Markets & Investment Management, Economic Analysis & Policy · Depth: Fundamental Awareness, short

Summary

Shares in chipmakers have surged significantly in the first half of 2026, driven by intense investor interest in hardware underpinning the artificial intelligence boom. South Korea's Kospi index rose 123%, its strongest first half since 1990, propelled by Samsung's 169% jump and SK Hynix's 303% increase. Both companies reported soaring demand from AI firms for datacenter chips, prompting South Korea to pledge over \$576 billion in AI and semiconductor investments. US chipmakers also saw substantial gains, with Sandisk up 780% in 2026 (and 4,510% over 12 months), Western Digital gaining 240%, Micron 296%, and Seagate 226%. This hardware focus has come at the expense of some software companies, like Microsoft, which fell 24%. However, recent days show signs of the chip boom faltering as investors protect profits and rotate out of tech.

Key takeaway

For investors evaluating tech sector allocations, the first half of 2026 demonstrated a strong shift towards AI-enabling hardware. You should assess your portfolio's exposure to semiconductor and memory chip manufacturers, considering their significant gains and the potential for continued AI capital expenditure. Be mindful of recent market rotations and the inherent volatility, as early signs suggest the chip boom's momentum may be slowing.

Key insights

The AI boom in early 2026 significantly boosted chipmaker shares, shifting investor focus from software to hardware.

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Best for: Investor, Tech Journalist, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI (artificial intelligence) | The Guardian.