Asia tech stocks lead early 2026 as AI chip demand rises

In short: Asia’s tech stocks are outperforming US tech in early 2026, helped by rising demand for AI and the chips that power it.

What's going on

A major index that tracks Asian tech shares is up about 6% so far in 2026. That is ahead of the Nasdaq 100 in the US, which is up about 2%. Investors are shifting money toward Asia because many key parts for AI are made there, especially semiconductors (the tiny chips inside phones, computers, and servers).

Some of the biggest winners are chip companies that sit in the middle of the global supply chain. Taiwan’s TSMC, South Korea’s Samsung Electronics, and SK Hynix are up roughly 8% to 16% this year. In Hong Kong, Hua Hong Semiconductor is up more than 20%.

Investors also point to strong profit expectations. Analysts expect earnings per share growth of about 79% for major South Korean companies and about 36% for Taiwanese firms over the next 12 months, compared with about 28% for Nasdaq companies. Samsung said its early numbers show operating profit tripled to a record, helped by higher memory chip prices, and TSMC reported revenue above estimates.

China is part of the story too. Interest has grown around newer AI efforts like DeepSeek’s approach to building AI more efficiently, and Kuaishou’s AI model for video editing.

What to watch

This trend depends on continued spending on AI systems and steady chip demand. There are also geopolitical risks, especially around Taiwan, plus signs of a memory chip shortage and uneven investor confidence in China tech.

Source: Financial Times