The investments that soared and slumped in the first half of 2026
In the first half of 2026, AJ Bell’s Dan Coatsworth said investments linked to physical AI build-out outperformed, while traditional risk hedges fell. Memory-chip makers surged: SanDisk +850% in six months; Western Digital, Micron and Seagate more than tripled. Chip gains lifted Asia and Europe, while gold fell ~28% from its peak and Bitcoin dropped 28%.
How this was made
The 30-second read
Why it matters
For traders, the main actionable takeaway is positioning risk: memory/chip momentum is described as reversing, while mega-cap AI spend narratives are framed as losing their premium. However, the article is largely a performance recap without new company-specific catalysts.
Market read
A cross-asset, multi-region wrap that highlights AI infrastructure as the dominant driver of first-half gains, then warns of a near-term unwind in memory/chip names and valuation compression in some mega-cap AI spenders.
What to watch
The article doesn’t quantify whether the unwind is driven by fundamentals (demand/supply changes) versus positioning/flows; traders may need to check inventory, contract pricing, and capex guidance for each name.
Background
The piece contrasts first-half 2026 winners tied to AI build-out (especially memory/storage) with laggards (mega-cap AI spenders, gold, Bitcoin) and notes a recent sell-off in some of the same winners.
Ticker impact
SanDisk is cited as leading the US market with a gain of over 850% in six months on AI-driven memory/storage demand.
Near-term volatility risk higher as the memory rally is described as unwinding in recent days.
The piece provides large performance figures and explicitly notes a sharp technology sell-off affecting the same names, implying momentum reversal risk.
Western Digital is reported to have more than tripled in value in the first half, tied to AI-related memory and storage supply constraints.
Potential for continued drawdowns if sell-off broadens beyond the initial unwind.
The article links WDC’s surge to the same catalyst (AI memory/storage) and then states the rally is unwinding recently.
Micron Technology is listed among memory-chip winners that more than tripled in value as AI demand met tight supply.
Short-term downside/mean-reversion risk elevated given the described unwind.
The text pairs extreme gains with a contemporaneous sell-off affecting the same cohort.
Seagate Technology is reported to have more than tripled in value during the first half on AI computing memory/storage demand.
Higher probability of choppy trading as the article notes the rally beginning to unwind.
The article’s causal chain (AI demand + tight supply) is followed by an explicit warning that the rally is unwinding.
Intel is cited as rising between 150% and 280% year-to-date as part of the broader AI trade.
Potential for underperformance versus earlier momentum if the sell-off persists.
The article provides performance ranges but does not give a company-specific catalyst or mechanism beyond the general AI trade.
Dell is listed among US equities that rose between 150% and 280% year-to-date on the AI trade.
Near-term risk of momentum fade if AI-related positioning is unwound.
No fresh Dell-specific fact is provided; the linkage is thematic and the unwind is described broadly.
Advanced Micro Devices is cited as rising between 150% and 280% year-to-date as AI spending boosted chip-related equities.
Volatility likely elevated; downside risk if the unwind accelerates.
The article lacks AMD-specific new information beyond the general AI trade and the mention of a sell-off.
Applied Materials is included among equities up 150% to 280% year-to-date on AI-related capex and chip production build-out.
Possible pullback if investors rotate away from AI infrastructure momentum.
The piece is a market wrap with no new AMAT-specific catalyst or datapoint beyond performance ranges.
Market effects
Reinforces a crowded AI-infrastructure trade (memory/chips/capex) and flags momentum reversal risk as the memory rally unwinds.
Emerging markets and parts of Asia are described as benefiting from chip exposure, while some indices (e.g., MSCI India, Hang Seng) lag.
Frames cross-asset rotation: away from gold/crypto toward AI-linked equities amid higher yields and cash-rate income.
Counterpoint
The “unwinding” may reflect normal volatility after extreme gains rather than a durable end to AI capex; valuation resets could create entry points for quality winners.
Key entities
- companySanDisk
Memory/storage winner cited as up over 850% in six months.
- companyWestern Digital
Memory/storage winner cited as more than tripled in value.
- companyMicron Technology
Memory winner cited as more than tripled in value.
- companySeagate Technology
Memory/storage winner cited as more than tripled in value.
- companyMeta
Mega-cap AI spender cited as down 14% total return, with premium valuation pressure.
