Global tech and semiconductors: what’s been driving returns and what to watch next
Posted :
Ryan Davies
CFA, Senior Portfolio Manager
Michael P. Evans
CFA, Managing Director, Equity Client Portfolio Manager
Semiconductors have been one of the strongest parts of global equity markets so far in 2026, with performance supported by a powerful mix of demand and improving fundamentals. The headlines have focused on artificial intelligence (AI), but the opportunity set is broader than a single theme or a handful of companies. As AI infrastructure expands, it is driving investment not only in high-performance computing chips, but also in the networking and power technologies that keep modern data centres running. At the same time, parts of the industry outside AI are showing early signs of stabilisation and recovery.
Key points:
- Semiconductors have led global markets in 2026, outperforming broader equities, with gains across multiple chip segments.
- AI infrastructure is the main driver, lifting demand for compute, networking, and power-related chips.
- Recovery is uneven beyond AI: industrial and auto are improving, while PCs and smartphones remain challenged.
- Supply chains are becoming more resilient and localised, supporting ongoing investment in manufacturing and equipment.
- Opportunities appear in connectivity, selective compute and power, and equipment, while risks include consumer softness, cycle swings, and potential policy or geopolitical shifts.