South Korea's president, Lee Jae Myung, pledged investments exceeding $576bn (£435m) over several years into semiconductors, AI datacentres, and robotics this week. This massive capital injection into the technological backbone of the future highlights how the global economy prioritizes advanced computing, often deployed in surveillance and control systems, over human needs. The profits of chipmakers soared in the first half of 2026, revealing the immense wealth accumulation at the heart of the digital age.
Shares in chipmakers surged this year as investors poured capital into companies manufacturing the hardware behind the AI boom. Semiconductor and memory chip manufacturers saw their profits climb during 2026, while some large software companies experienced declines.
Profits for the Few, Control for the Many
The share price of some chip companies has tripled or more since January, driving Asia Pacific stock markets sharply higher. South Korea's Kospi index climbed 123% this year, marking its strongest first half since at least 1990, according to Guardian analysis of London Stock Exchange Group data. Samsung's share price jumped 169% this year, and SK Hynix rose 303% since January.
Both companies reported a significant increase in demand this year as AI companies competed for chips to power their datacentres. Under the South Korean plan, Samsung and SK Hynix will construct a total of four fabrication plants in the country's south-west region.
US chipmakers also saw strong demand. Shares in Sandisk surged 780% this year, rocketing by 4,510% over the last 12 months. Western Digital gained 240% this year, Micron increased 296%, and Seagate rose 226%, with two trading days remaining until the second half of the year begins.
Dan Coatsworth, head of markets at investment platform AJ Bell, noted these four US companies produced "kind of gains in six months you might normally expect over decades with investing." He added that "demand exceeding constrained supply led to a surge in memory chip prices and took suppliers' shares on a spectacular ride upwards," describing "higher selling prices and greater demand" as "a powerful cocktail for explosive earnings growth."
Apple attributed increased iPad and MacBook prices last week to the rising cost of memory chips. The company is also reportedly seeking clearance from the Trump administration to purchase memory chips from CXMT, a Chinese company blacklisted by the Pentagon.
The Global Capitalist Machine
Shares in hyperscalers, which are rolling out AI services, fell in recent weeks as investors shifted holdings from software to hardware stocks. This includes Microsoft, which is down 24% during 2026 and hit a one-year low last week.
Some investors expressed concern over the huge spending plans announced by leading AI companies. This has led to higher borrowing and will consume firms' cashflow, making them more capital-intensive businesses. Signs emerged in recent days that the chip stock boom is faltering, with shares off their recent highs as investors rotated out of tech into other sectors.
Chris Beauchamp, chief market analyst at trading and investment platform IG, stated: "Having piled in to AI and tech since the end of March, there is a desire to protect profits, and investors continue to be in a mood to sell first and ask questions later."
Generally, solid stock market gains occurred over the first half of 2026, with Japan's Nikkei climbing 38%. The UK's FTSE 100 gained 5.8%, after falling from a record high at the end of February as the Iran war impacted share prices. The London stock market was lifted by takeover offers for several companies, including Beazley, DCC, Glencore, Schroders, Segro, and Intertek.
Brent crude oil, starting the year at $60 a barrel, ends June about $12 higher. Its price had doubled to over $120 by the end of April, following the closure of the Strait of Hormuz, which fueled supply shortages.
The US S&P 500 share index gained 7.4% this year, reaching 7,354 points at the end of last week. Mark Haefele, chief investment officer at UBS Global Wealth Management, predicts the US market will climb over the next year, lifting the S&P 500 to 8,200 points by June 2027. He cited "continued strength in AI capital expenditure, a resilient US economy, ongoing fiscal spending around the world, and strong credit creation continuing to support corporate earnings growth and markets more broadly."