Asian Chip Stocks Surge, Outpacing Magnificent 7 by Record Margin
The MSCI EM Semiconductors index has soared to a record ratio of ~205 relative to the Magnificent 7, more than doubling since early 2026. Asian chip stocks have surged 91% year-to-date while the Mag7 has fallen 7%, driven by South Korean manufacturers SK Hynix and Samsung, which have rallied 348% and 199% respectively.
Asian semiconductor stocks are dramatically outperforming the Magnificent 7, with the MSCI Emerging Markets Semiconductors to Mag7 ratio hitting an all-time high of approximately 205. This ratio has more than doubled since the start of 2026, reflecting a sharp divergence in performance.
Year-to-date, the MSCI EM Semiconductors index has gained 91%, while the Magnificent 7 has dropped 7%. The rally is primarily led by South Korean chipmakers SK Hynix and Samsung, which have posted gains of 348% and 199%, respectively, over the same period.
The outperformance has accelerated this month (June), with the Magnificent 7 falling 14% so far in June, while SK Hynix and Samsung have added 25% and 13%, respectively. Analysts attribute the shift to Asian chip stocks becoming the new leaders of the AI trade.
Source: The Kobeissi Letter