The investments that soared and slumped in the first half of 2026
Poinews.com – As 2026 progressed through its first six months, a distinct trend began to take shape across global markets: AI infrastructure stocks surged, while traditional safe-haven assets faced setbacks. Despite ongoing geopolitical tensions, including a Middle Eastern conflict, rising oil prices, and political instability, major stock indices still hit record levels. Dan Coatsworth, head of markets at AJ Bell, observed that firms benefiting from AI-driven capital inflows outperformed others, with Bitcoin surprising investors by underperforming and gold losing its appeal.
Memory Chip Manufacturers Lead the AI Boom
The most dramatic gains were seen in the unglamorous but essential segment of technology: memory chip producers. As demand from AI training and datacentre expansion outpaced supply, shares of companies like SanDisk skyrocketed over 850% in six months. Western Digital, Micron Technology, and Seagate Technology also saw their valuations triple, a pace of growth that typically takes years to achieve. Coatsworth noted that this rapid ascent was fueled by the massive need for high-speed storage solutions in AI systems, with Intel, Dell, AMD, and Applied Materials also posting gains between 150% and 280%.
Emerging markets benefited from the AI surge, as Asian chipmakers such as TSMC and SK Hynix dominated regional indices. This lifted South Korea’s KOSPI to a doubling in value, Japan’s Nikkei 225 up nearly 40%, and the MSCI Emerging Markets index rising by about 27%. In Europe, the FTSE 100 gained 7%, while France’s CAC 40 and Germany’s DAX rose by 5% and 2%, respectively.
Traditional Assets Struggle Amid AI Momentum
Gold, once a reliable refuge for investors during uncertainty, faced a sharp reversal. After hitting a record high of $5,594.82 an ounce in January, it lost 28% from its peak. Coatsworth said this decline was driven by higher bond yields and cash rates, which offer more tangible returns than gold. Bitcoin fared even worse, dropping 28% since the start of the year, as investors shifted focus to technology stocks instead of cryptocurrencies.
Meanwhile, the “Magnificent 7” saw a reversal in fortune. Meta and Microsoft, which were previously standout performers, fell 14% and 24% respectively, as their valuations adjusted to a more capital-intensive AI sector. Microsoft now trades at its lowest level in a decade, with both it and Meta valued less than McDonald’s, a shift few anticipated during the AI hype peak.
Takeovers and Sector Shifts
UK markets experienced a different dynamic, with takeovers driving significant gains. Six FTSE 100 firms, including Glencore, Schroders, and Segro, attracted takeover interest, signaling continued confidence in British blue-chip stocks despite a three-year re-rating. However, housebuilders like Persimmon lagged due to a weak property market, while companies closely linked to AI, such as Experian and RELX, faced fears of disruption.
Defence stocks cooled significantly after a strong 2025. BAE Systems, Rheinmetall, and Palantir all retreated, as investors moved away from the sector after factoring in rising military budgets. This contrasts with the AI rally, which has recently begun to ease, with several leading names falling in sharp tech selloffs.
“Bitcoin proved a shocker, while gold lost its shine,” Coatsworth remarked.
This article does not constitute financial advice. Always do your own research and invest according to your specific circumstances.
