Major technology stock indices are climbing to new highs, led by global semiconductor companies. Surging chip demand driven by expanded artificial intelligence (AI) investments from U.S. Big Tech firms, combined with blockbuster earnings from related companies, is fueling a broad market rally. In contrast, companies dubbed "China's Big Tech" have been unable to escape a recent slump, prompting growing frustration among local investors.
According to Reuters and other outlets, the Philadelphia Semiconductor Index (SOX) jumped 7.73% from the previous trading day to close at 10,980.58 on Wednesday. The index, comprising the top 30 U.S.-listed semiconductor design, manufacturing, and sales companies, set a new all-time closing high. Major chipmakers including Intel (12.92%), Qualcomm (10.79%), and Micron (11.06%) all posted double-digit gains, driving the index higher. The Wall Street Journal noted that "the SOX has surged 54% since the end of March," describing it as "the largest gain over 25 trading days since March 2000, during the height of the dot-com boom."
U.S. chipmaker AMD also drew significant market attention with strong earnings. AMD reported first-quarter revenue of $10.3 billion, up 38% from a year earlier. Earnings per share (EPS) came in at $1.37, beating the market consensus of $1.28. AMD shares, which had risen 4.02% in regular trading, surged more than 16% in after-hours trading following the earnings release, bringing their year-to-date gain to 66%.
Buoyed by this momentum, the tech-heavy Nasdaq Composite Index rose 1.03% from the previous session to close at 25,326.13, setting another record high.
The AI-driven tech rally is spreading across global markets. The upward momentum is particularly pronounced in South Korea and Taiwan, key hubs in the semiconductor supply chain. Taiwan's Taiex Index broke through the 41,000 level on Thursday, posting a 41.8% gain year-to-date. The advance was driven by consecutive strong performances from TSMC, the world's largest foundry (contract chip manufacturer), and fabless firm MediaTek, which together account for more than 40% of the index's weighting.
China's tech market, by contrast, is moving in the opposite direction. With shares of major Big Tech firms such as Alibaba, Tencent, and Baidu relatively sluggish, Hong Kong's Hang Seng Tech Index—often called China's Nasdaq—has fallen 10.6% from the start of the year. While heavily weighted index constituents are pursuing AI businesses in parallel, their reliance on legacy operations such as e-commerce, gaming, and advertising has weighed on performance. The fact that emerging AI firms such as Z.ai and MiniMax, which have surged more than 400% since their Hong Kong listings, are not yet included in the index has also been cited as a factor behind the weakness.
The STAR 50 Index on the Shanghai Stock Exchange's STAR Market, which includes many semiconductor, robotics, and AI firms, has shown signs of a recent rebound, but its year-to-date gain stands at only around 16%. Discontent is building among Chinese investors left out of the global tech rally. The South China Morning Post reported that "comments calling on authorities to revive the Hang Seng Tech Index have been flooding Hong Kong officials' social media accounts, drawing thousands of likes."
