The first half of 2026 saw semiconductors outperforming big tech and crypto, according to data from Deutsche Bank and CoinGecko. The Philadelphia Semiconductor Index rose by an impressive 102%, while the Magnificent Seven, a group of top US stocks, fell by 2%. Bitcoin (BTC) lost 33% in value during this period.
The divergence between chipmakers and other assets was highlighted by Goldman Sachs derivatives specialist Brian Garrett. 'The market is rightly rewarding the names that earn, while at the same time questioning the names that spend', he explained. Hyperscalers such as Microsoft, Amazon, Meta, and Google have been pouring billions into data centers, but their spending is increasingly seen as a cost without a proven payoff.
Morgan Stanley strategist Michael Wilson argues that chip momentum is fading as investors rotate towards hyperscalers. The Philadelphia index has dropped almost 14% from its June record, although it remains 123% higher since September. JPMorgan's Mislav Matejka believes the rally will broaden beyond technology in the second half.