Emerging markets tech stocks soar over 90% in H1 2026

Emerging markets technology stocks closed out the first half of 2026 as the world's top-performing asset class, with the MSCI Emerging Markets Technology Index soaring more than 90% — dwarfing gains in U.S. and European equities and capping a historic period of outperformance for international markets.cnbc+1

The rally, driven by insatiable demand for AI infrastructure and a global semiconductor supercycle, has upended the long-running dominance of American Big Tech. The S&P 500 Information Technology Index gained 19.4% over the same period, while Europe's technology index rose 44.8%.intellectia

South Korea and Japan Lead the Charge

South Korea's Kospi has been the standout performer among major global indexes, roughly doubling since the start of the year. By early June, Goldman Sachs noted the Kospi had risen approximately 100% year-to-date, prompting the bank to raise its 12-month target to 12,000. The rally has been powered by semiconductor giants SK Hynix and Samsung Electronics, which have seen their market capitalizations surge on the back of booming high-bandwidth memory (HBM) chip sales tied to AI data center buildouts.reuters+2

Japan's Nikkei 225 also posted strong gains, up 43.8% in local-currency terms as of late June, according to Dow Jones Market Data, after briefly crossing the 60,000 level for the first time in April. The broader MSCI Emerging Markets Index returned approximately 26% year-to-date through mid-2026.reuters+2

Taiwan Semiconductor Manufacturing Company ↘ 10.78%, the world's largest contract chipmaker, has been another pillar of the rally, with its U.S.-listed shares reaching all-time highs and the company reporting May revenue up 30% year-over-year.perplexity+1

Late-June Sell-Off Tests the Rally

The first half did not end without turbulence. A sharp sell-off gripped global technology stocks in the final week of June, with the Kospi plunging 10% in a single session on June 23 as SK Hynix and Samsung each dropped over 12%. The rout, triggered by disappointing earnings from Broadcom ↘ 10.43% and mounting concerns about AI spending sustainability, sent the Nasdaq Composite down more than 2% and prompted Bank of America's Bubble Risk Indicator to flash warning signals for semiconductors.reuters+3

Despite the late pullback, emerging markets tech stocks retained the bulk of their first-half gains. According to Reuters, concerns over bubble-like conditions in the semiconductor sector have not erased the structural tailwinds — including a weaker U.S. dollar and robust AI capital expenditure cycles — that analysts expect to support the asset class into the second half of the year.reuters+1

The "Magnificent Seven" U.S. tech giants collectively shed approximately $2.3 trillion in market value during June alone, marking what analysts at Motley Fool described as the group's worst start to a year in recent memory.intellectia