Chipmaker Shares Falter After 310% Rallies as Investors Rotate Out of Tech
Updated
Updated · The Guardian · Jun 29
Chipmaker Shares Falter After 310% Rallies as Investors Rotate Out of Tech
3 articles · Updated · The Guardian · Jun 29
Summary
Recent trading has knocked chip stocks off their highs as investors lock in gains and shift money out of tech after a blistering first half.
310% gains in SK Hynix, 183% in Samsung and 780% in Sandisk were fueled by AI-driven demand, constrained memory-chip supply and explosive earnings growth.
That hardware boom has come at software’s expense: Microsoft is down 24% in 2026, while investors question whether hyperscalers’ heavy AI spending, borrowing and weaker cash flow can be sustained.
Apple last week cited higher memory-chip costs for iPad and MacBook price increases, underscoring how the chip surge is feeding through to customers.
Even with the recent wobble, the rally has reshaped markets—South Korea’s Kospi is up 125% this year, versus 38% for Japan’s Nikkei and 7.4% for the S&P 500.
Is the AI chip boom a new tech revolution or just another speculative bubble about to burst?
As AI supercharges chipmakers, what hidden energy and infrastructure costs could derail the entire boom?
Will Apple's push for Chinese chips challenge US tech policy and reshape global supply chains?
Global Tech Stocks Plunge in June 2026: AI Valuation Fears and Interest Rate Jitters Trigger Market Sell-Off
Overview
In late June 2026, global markets saw a sharp sell-off, especially in technology stocks, as investor sentiment cooled suddenly. This downturn was marked by significant declines in European shares, with the Stoxx 600 index dropping about 1%. The main drivers were clear signals of likely higher interest rates, which made future earnings less attractive and led to a broad recoil in risk appetite. As borrowing costs were expected to rise, investors re-evaluated their positions, particularly in growth sectors like tech, triggering a widespread retreat from these assets.