U.K. stocks have been out in the cold for much of 2026. Without a buzzy AI stock to its name, the FTSE 100 index lagged global peers.

But a rout in chip stocks seems to have heralded a change in fortunes for London's premier index. The FTSE 100 hit a record high today-its first since February.

The index is now up 9.7% for the year, outperforming both the S&P 500 and the Nasdaq 100, which are up 7.8% and 9.4% for the year, respectively.

Investors losing faith in AI chip stocks are rotating into more boring defensive stocks. Luckily for London, it's full of them. Staid old insurers and housebuilders have rallied in recent weeks, while higher oil prices have been a boon for oil majors Shell and BP.

Some other winners this year include:

-Lender HSBC, up 32% year to date

-Miner Glencore, up 25%

-Car and engine maker Rolls-Royce, up 23%