Tech stocks draw $582.5m on AI hardware demand

Semiconductor-linked counters led valuation gains across the sector. 

Institutions poured $582.5m into Singapore technology stocks in 2026 through 3 June as the artificial intelligence (AI) chip cycle fuelled a re-rating in semiconductor-linked counters, according to SGX Group.

Net institutional inflows and valuation expansion within the sector have been concentrated in semiconductor test, equipment, and production-support companies. 

Of the 49 stocks in the technology sector, around a dozen are directly involved in semiconductor production and testing. 

The rest are mainly in related areas such as manufacturing, system integration, infrastructure, and software, the bourse said.

The semiconductor-linked group includes companies involved in testing and validation, backend packaging, fabrication equipment, precision components, process consumables, materials, and equipment support.

Across 12 semiconductor-linked names, valuation expansion has been led by AEM, UMS, and Frencken. Price-to-earnings ratios moved higher across the group, with the average and median now around 50 times and 32 times, respectively.

“A common thread across their first quarter business updates is AI-driven semiconductor demand moving through the production chain,” SGX said.

It cited Bloomberg data, which also showed consensus target prices increased over the past month. Consensus rose about 80% for AEM Holdings, about 70% for UMS Integration, and about 30% for Frencken Group.

AI hardware-related stocks also saw investor interest, although they do not directly participate in semiconductor production. 

SGX identified PC Partner Group, Venture Corporation, Valuetronics Holdings, Aztech Global, and InnoTek as companies providing exposure to AI-driven hardware demand.

The bourse said that the semiconductor production segment absorbed the bulk of institutional net buying. 

Hardware and systems also recorded positive flows, whilst infrastructure saw modest inflows and software posted net outflows.