Taiwan, South Korea Overtake India in Equity Rankings as $1 Trillion AI Bets Surge
Updated
Updated · CNBC · Jun 4
Taiwan, South Korea Overtake India in Equity Rankings as $1 Trillion AI Bets Surge
2 articles · Updated · CNBC · Jun 4
Summary
Taiwan became the world’s fifth-largest stock market on May 26 and South Korea overtook India within a week, pushing India down to seventh as AI-linked chip stocks powered their rise.
TSMC, Samsung and SK Hynix have been valued at more than $1 trillion, while India lacks a large-scale AI play and its consumption story is weakening under higher inflation, a softer rupee and slower quality job creation.
Foreign investors have sold $27.6 billion of Indian equities since January, already exceeding 2025’s $18.9 billion total, as Nomura cut FY2027 earnings estimates for 256 leading Indian companies by 4%.
India’s benchmark indexes are down more than 10% this year, versus gains of over 130% for Korea’s Kospi 200 and more than 60% for Taiwan’s FTSE TWSE 50; Indian stocks still trade at about 21 times forward earnings, against nine times for South Korea.
The reversal is sharp: about 18 months ago India’s market cap was 3.5 times South Korea’s and more than double Taiwan’s, but automation, AI disruption and rich valuations are now clouding the longer-term case for Indian equities.
As AI reshuffles global markets, can India build a sovereign tech ecosystem to reclaim its top spot?
Is India's consumption-led growth model obsolete in a world now dominated by the AI boom?
South Korea Overtakes India in Market Capitalization: How the AI Chip Rally Reshaped Global Equity Rankings in 2026
Overview
In June 2026, South Korea surpassed India in global market capitalization, marking a dramatic shift in the global equity landscape. This leap was fueled by a robust semiconductor cycle, with major players like Samsung and SK Hynix driving much of South Korea’s market gains. Meanwhile, India’s equity markets struggled, facing declines in key indices due to elevated valuations and subdued corporate earnings growth. The contrast highlights how South Korea’s focus on semiconductors enabled rapid market advancement, while India’s challenges in earnings and valuations led to underperformance, emphasizing the dynamic and interconnected nature of global investment flows.