Global AI race shows Asia leading as stocks start 2026 on a tear

Asia’s technology stocks began 2026 on a tear, with investors betting their momentum and outperformance against US peers will last through the year.

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Strategists at Goldman Sachs Group are overweight on the sector and expect further gains, driven partly by surging demand related to artificial intelligence (AI) and reasonable valuations. Citigroup says global long-term investors are accumulating Asia’s tech stocks, given their importance in the semiconductor supply chain and the potential for earnings upside.

A key Asia tech gauge has jumped about 6 per cent so far in 2026, beating a 2 per cent gain in the Nasdaq 100, as investors rotate towards the region at the core of the global semiconductor supply chain. The shift reflects growing scepticism that US tech can sustain its Al-driven rally after years of outsized gains.

Strong fundamentals are reinforcing the move. Samsung Electronics last week posted preliminary operating profit that more than tripled to a record, and Taiwan Semiconductor Manufacturing Company’s (TSMC) revenue exceeded estimates. Stellar stock market debuts of Chinese AI firms are also adding to the optimism.