AI Boom Drives Market Winners as Gold, Bitcoin Lose Ground in First Half of 2026

AI Boom Drives Market Winners as Gold, Bitcoin Lose Ground in First Half of 2026

Artificial intelligence remained the biggest force shaping global financial markets during the first six months of 2026, propelling technology stocks to record gains while traditional safe-haven assets and cryptocurrencies struggled to keep pace.

A mid-year review by British investment firm AJ Bell showed that companies supplying memory chips and data storage equipment recorded some of the strongest performances.

SanDisk emerged as one of the biggest winners after its shares surged by more than 850 percent, while Western Digital, Micron Technology and Seagate Technology all posted gains of more than 200 percent.

Analysts attributed the rally to soaring demand for hardware needed to support the rapid expansion of AI data centres, as businesses worldwide increased spending on computing infrastructure.

The optimism also lifted several major technology firms. Intel, Dell Technologies, AMD and Applied Materials recorded sharp gains as investors poured money into companies expected to benefit from the artificial intelligence race.

Stock markets in Asia reflected the upbeat mood. South Korea’s KOSPI index recorded exceptional growth, Japan’s Nikkei 225 advanced strongly, while the MSCI Emerging Markets Index also finished the first half of the year higher.

European markets delivered more modest gains, with Britain’s FTSE 100, France’s CAC 40 and Germany’s DAX all closing in positive territory.

Not every market shared in the rally. India’s MSCI index and Hong Kong’s Hang Seng Index both ended the period lower as investors shifted their attention elsewhere.

Momentum within the technology sector also cooled towards the end of the half-year. After months of rapid gains, several chipmakers began to lose steam as investors reassessed company valuations.

Meta and Microsoft both came under pressure as rising spending on artificial intelligence projects weighed on investor sentiment.

Gold, which reached a record high earlier in the year, later reversed course, losing roughly 28 percent as elevated interest rates and stronger bond yields attracted investment away from the precious metal.

Bitcoin experienced a similar decline, falling around 28 percent amid weakening demand for digital assets and increased investor preference for AI-related equities.

In the United Kingdom, takeover activity helped support shares of several listed companies, including Glencore, Schroders and Segro, as investors searched for undervalued opportunities.

Meanwhile, property developers struggled against a subdued real estate market, while companies such as Experian and RELX faced growing concerns that advances in artificial intelligence could reshape their business outlook.

Defence stocks, which had enjoyed a strong run in 2025, also retreated as investors locked in profits from companies including BAE Systems, Rheinmetall and Palantir.