AI Chips Rally Powers TSMC (+52%), Samsung (+159%), and MediaTek (+184%) as Konrad’s Fund Turns Overweight

The global AI chip boom is reshaping Asian stock markets in 2026. Strong demand for artificial intelligence infrastructure, data centers, advanced processors, and memory chips has pushed several semiconductor giants to record highs. According to Reuters, fund manager Sam Konrad of Jupiter Asset Management reported that his fund became so concentrated in winning AI stocks that it was forced to reduce exposure despite strong performance. 

1. Taiwan Semiconductor Manufacturing Company (TSMC) Surges 52%

TSMC shares have climbed 52% in 2026, making the company one of the biggest beneficiaries of the AI Chips boom. The world’s largest contract chip manufacturer sits at the center of the artificial intelligence supply chain, producing advanced processors for major AI developers and cloud computing companies.

The company’s leadership in 3-nanometer and upcoming 2-nanometer chip technology continues to attract customers building next-generation AI accelerators. TSMC now accounts for approximately 41.5% of Taiwan’s benchmark TAIEX index, highlighting its dominant role in both the semiconductor industry and regional equity markets.

Why are investors bullish on TSMC?

The answer is simple: AI data center spending remains strong, advanced chip demand is rising, and TSMC remains the preferred manufacturing partner for many leading AI chip designers. Its pricing power and technology lead continue to support long-term revenue growth expectations.

2. Samsung Electronics Jumps 159%

Samsung Electronics has delivered an extraordinary 159% gain in 2026, fueled by renewed optimism surrounding AI memory chips. The company has emerged as a key supplier of High Bandwidth Memory (HBM), a critical component used in AI servers and advanced computing systems.

The rally helped Samsung’s market value move above US$1 trillion, placing it among the world’s most valuable technology companies. Investors have increasingly focused on the company’s ability to capitalize on growing AI infrastructure spending.

What is driving Samsung’s AI chip growth?

AI servers require significantly more memory than traditional computing systems. As hyperscale data centers expand globally, demand for premium memory solutions continues to rise, creating a major growth opportunity for Samsung’s semiconductor division.

3. MediaTek Soars 184%

MediaTek has emerged as the strongest performer among the three companies, with shares soaring 184% year to date. The Taiwanese chip designer has benefited from increasing adoption of AI-powered smartphones, edge AI devices, and next-generation connectivity solutions.

Unlike TSMC, which focuses on manufacturing, MediaTek develops chipsets used in smartphones, consumer electronics, and intelligent devices. The company’s AI integration strategy has helped investors view it as a major beneficiary of the broader artificial intelligence ecosystem.

Why is MediaTek outperforming?

The market is pricing in stronger demand for AI-enabled consumer devices. As manufacturers race to bring generative AI features to smartphones and personal devices, MediaTek’s product portfolio is becoming increasingly important.

AI Chips Investment Comparison: Which Stock Has Led the Rally?

Among the three AI Chips leaders, MediaTek delivered the highest gain at 184%, followed by Samsung at 159%, while TSMC advanced 52%. However, TSMC remains the most strategically important company in the AI semiconductor supply chain due to its manufacturing dominance.

For investors, the key takeaway is that each company benefits from a different part of the AI value chain:

• TSMC: Advanced chip manufacturing and foundry services.
• Samsung: AI memory chips and HBM technology.
• MediaTek: AI-enabled consumer processors and edge computing solutions.

Together, these three semiconductor leaders have become some of the most influential stocks driving Asia’s AI Chips rally in 2026.

Why Are Investors Talking About AI Chip Concentration Risk?

The AI Chips rally has become so powerful that just TSMC, Samsung, and SK Hynix account for nearly one-third of the MSCI Asia Pacific ex Japan Index. At the country level, TSMC now represents 41.5% of Taiwan’s TAIEX, while Samsung and SK Hynix make up 55% of South Korea’s KOSPI. 

According to HSBC research cited by Reuters, TSMC has become the largest underweight position among many active Asian and emerging market funds because portfolio rules limit excessive concentration in a single stock. 

As reported by Reuters and widely discussed by financial media, including The Star, this has created a cycle where active managers sell winning AI stocks even while fundamentals remain strong. 

AI Chips Reshape Fund Flows and Market Leadership

The impact extends beyond individual stocks. The MSCI Asia Pacific ex Japan Index has gained 27% in 2026, but excluding Taiwan and South Korea, the benchmark is down 4%, highlighting how much of the region’s performance depends on AI-related companies. 

Over the last five years, Asian active funds recorded $269 billion in outflows, while passive funds attracted $510 billion in inflows. Nearly 25% of those passive inflows arrived during the last six months alone. 

Market Perspective: AI Chip Leaders Continue to Set the Pace

For investors, the AI Chips story remains centered on scale, earnings growth, and technological leadership. TSMC continues to benefit from advanced manufacturing demand, Samsung is strengthening its AI memory position, and MediaTek is gaining from AI-enabled devices and semiconductor innovation. Yet the rally has also increased concentration risk to levels many strategists describe as unprecedented in Asia. With AI infrastructure spending still accelerating, these semiconductor leaders remain critical stocks to watch through the remainder of 2026. 

Disclaimer

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.