Nvidia and Micron seen driving a third of S&P earnings growth
A ZeroHedge analysis based on Goldman Sachs and FactSet estimates says the chipmakers will outpace the S&P 500’s other 490 companies.
Key takeaways
- Nvidia and Micron are expected to drive more than one-third of S&P 500 third-quarter EPS growth.
- AI infrastructure companies are expected to contribute more than half of S&P 500 earnings growth.
- Analysts forecast 29.5% year-over-year S&P 500 earnings growth for the third quarter.
Nvidia and Micron are expected to account for more than one-third of S&P 500 earnings-per-share growth in the third quarter, according to a ZeroHedge analysis.
The analysis used earnings estimates compiled by Goldman Sachs and FactSet. It also found that the two chipmakers are expected to generate more earnings growth than the S&P 500’s other 490 companies combined. AI infrastructure companies are projected to drive more than half of the index’s earnings growth.
Yorkville Ives partner Dan Ives described the AI boom as being in its “3rd inning of a 9-inning game.” He wrote that spending on AI infrastructure by the five largest cloud platforms is running at about $850 billion this year.
For the recently completed third quarter, the S&P 500 is expected to report year-over-year earnings growth of 29.5%. FactSet says that would mark a third consecutive quarter above 25% growth and an eighth straight quarter of double-digit growth.
Analysts forecast 27.6% earnings growth for the fourth quarter and 32.4% for all of 2026.
This article was produced with the help of AI technology. Source: Yahoo Finance
