The Asian-Pacific markets are experiencing a remarkable surge, driven by the skyrocketing demand for semiconductors underpinning the AI revolution. Notably, South Korea's Kospi index has risen 125% year-to-date, its strongest first half since at least 1990, according to data from the London Stock Exchange Group.
The electronics giant Samsung has been a key driver of this trend, with its share price soaring 183% so far in 2026. SK Hynix is also benefiting, with its shares up 310% since January. In the US, chipmakers are similarly performing well, with Sandisk's shares increasing 780% and Western Digital's rising 240% this year.
The burgeoning demand for semiconductors in AI-driven datacentres has become a major catalyst for the surge in chipmaker shares. Apple recently cited the rising cost of memory chips as a contributing factor to increased iPad and MacBook prices, underscoring the growing significance of these components in consumer electronics.
However, some investors are voicing concerns about the hefty spending plans announced by leading AI companies, which could potentially strain their finances through increased borrowing. There have been signs in recent days that the chip stock boom may be losing steam as investors rotate out of tech into other sectors.