Emerging-market stocks are rallying as investors rotate away from major semiconductor makers like Taiwan Semiconductor and Samsung Electronics toward smaller companies specializing in data center infrastructure components. The MSCI Emerging Markets Index is up roughly 22% year-to-date in 2026, with gains of up to 90% for names like King Slide Works Co, Henan Shijia Photons Technology Co and EverProX Technologies Co, which manufacture server components, cooling systems and optical connectivity equipment. This broadening into smaller infrastructure plays is being seen as a sign of healthier, more sustainable momentum, reducing the concentration risk that characterized the previous rally driven by mega-cap semiconductor stocks. The durability of this move will depend on continued AI infrastructure spending and these companies’ ability to maintain competitive advantages in niche market segments.
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