Global technology stock indexes in major markets are hitting record highs, led by semiconductor companies. Surging demand for chips driven by U.S. Big Tech's expanded artificial intelligence (AI) investments, combined with a string of earnings surprises at related companies, is fueling broad market gains. By contrast, Chinese counterparts to U.S. Big Tech have struggled to rebound, stoking frustration among local investors. Even within China, however, regional clusters that control the AI infrastructure supply chain are quietly expanding their presence and showing exceptional growth.
Philadelphia Semiconductor Index Posts Biggest Rally in 25 Years
According to Reuters and other outlets, the Philadelphia Semiconductor Index (SOX) closed at 10,980.58 on Wednesday (local time), up 7.73% from the previous trading day and setting a new all-time high. The index, comprising the top 30 U.S.-listed semiconductor design, manufacturing, and sales companies, was driven by double-digit gains from major chipmakers including Intel (12.92%), Qualcomm (10.79%), and Micron (11.06%). The Wall Street Journal noted that "the SOX has surged 54% since the end of March alone," adding that it marks "the strongest 25-trading-day performance since March 2000, the peak of the dot-com boom."
Analysts say massive capital expenditures (CAPEX) by hyperscalers — operators of ultra-large data centers such as Google, Amazon, Microsoft, and Meta — are driving rapid growth in AI computing demand at data centers, which is translating directly into earnings improvements for semiconductor companies. Goldman Sachs estimates that about 40% of earnings-per-share (EPS) growth among U.S.-listed companies this year has come from AI-related investments.
AMD Delivers Earnings Surprise, Stock Up 66% This Year
Another star of the earnings season was AMD. The company reported first-quarter revenue of $10.3 billion, up 38% from a year earlier. EPS came in at $1.37, beating market consensus of $1.28. AMD shares rose 4.02% during the regular session and jumped more than 16% in after-hours trading following the earnings release. "AMD stock has soared 66% this year," CNBC reported, adding that "expectations for expanding demand for data center graphics processing units (GPUs) are driving investor sentiment."
Buoyed by this mood, the tech-heavy Nasdaq Composite rose 1.03% from the previous session to close at 25,326.13, setting another all-time high. According to Bloomberg, the Nasdaq has set nine new record highs this year alone.
Korean, Taiwanese Markets Also Soar on Semiconductor Supply Chain Gains
The AI-driven tech stock rally is spreading across global markets. The rally is particularly pronounced in Korea and Taiwan, both key hubs in the semiconductor supply chain.
Taiwan's Taiex broke through the 41,000 mark on Thursday, posting a year-to-date gain of 41.8%. The rise was driven by persistent strength in TSMC, the world's largest foundry (contract chipmaker), and fabless chip designer MediaTek, which together account for more than 40% of the index's weight.
Korea's KOSPI also surged more than 6% on the same day, ushering in the era of the "dream 7,000." With foreign buying concentrated heavily in semiconductor stocks, KOSPI trading volume was the second-highest on record. The KOSPI closed at 7,384.56, up 447.57 points, or 6.45%, from the previous session. This marks the first time ever that the index has topped 7,000 — just over two months after first breaking through 6,000 on February 25. In trading-day terms, the milestone came in just 47 sessions.
Chinese Tech Stocks Move in Opposite Direction, Frustrating Investors
China's tech stock market, by contrast, is showing an entirely different trajectory. With shares of major Big Tech players such as Alibaba, Tencent, and Baidu failing to escape relative weakness, Hong Kong's Hang Seng Tech Index — known as "China's Nasdaq" — has fallen 10.6% since the start of the year. Analysts say that while these companies are pursuing AI businesses in parallel, their heavy reliance on legacy operations such as e-commerce, gaming, and advertising means AI growth potential is not being fully reflected in earnings and share prices. The fact that emerging AI companies such as Zhipu AI and MiniMax — which have surged more than 400% since their Hong Kong listings — have yet to be included in the index is also cited as a factor behind the lagging performance.
The STAR 50 Index of the Shanghai Stock Exchange's STAR Market (Science and Technology Innovation Board), which is heavily populated with semiconductor, robotics, and AI companies, has recently regained some upward momentum, but its year-to-date gain of about 16% still leaves it looking limited. "U.S. tech indexes have a high weighting of AI-related stocks, whereas companies like Tencent and Alibaba generate profits from e-commerce and financial services, which is not translating into explosive share-price growth," said Kenny Ng Lai-yin, a strategist at Everbright Securities. The South China Morning Post (SCMP) reported that "comments pleading to save the Hang Seng Tech Index have drawn thousands of likes on Hong Kong authorities' social media accounts."
Suzhou: A Quiet Exception Emerges as AI Supply Chain Cluster
While China's Big Tech stocks continue to struggle, Suzhou in Jiangsu Province, near Hangzhou, presents a distinctly different picture. As benefits from expanded investment in AI data center infrastructure flow to listed companies in the region, the number of so-called "100 billion yuan club" members — companies with market capitalization exceeding 100 billion yuan (about 19 trillion won) — has grown to six over the past year. Companies supplying core components for AI data centers, such as optical modules, printed circuit boards (PCBs), and optical chips, are concentrated in Suzhou, creating a structure in which local firms benefit as global Big Tech's capital spending expands.
Leading the pack, Innolight Technology holds the world's top position in the 800G optical module market — a next-generation high-speed optical communications standard — with a market share of more than 40%. The company doubled both revenue and net profit year-on-year in the first quarter, establishing itself as one of the biggest beneficiaries of the AI infrastructure investment boom.
