Semiconductor Sector to Drive 48% of S&P 500 Earnings Growth in Q2

According to Huoxing Finance, on July 22, The Kobeissi Letter reported that technology stocks now account for a historical high share of earnings growth in the S&P 500. In the first quarter of 2026, Amazon, Alphabet, Meta, and Microsoft collectively contributed approximately 34% of the S&P 500’s year-over-year earnings per share growth, while semiconductor companies contributed an additional 31%, with the remaining components accounting for roughly 36%. Together, these two sectors accounted for 65% of the S&P 500’s earnings growth in the first quarter, up from 52% during the same period in 2025, indicating that profit growth remains heavily concentrated among large technology companies and the semiconductor industry. Looking ahead to the second-quarter earnings season, semiconductor companies are expected to increase their contribution to S&P 500 earnings growth by 17 percentage points to a record 48%, while Amazon, Alphabet, Meta, and Microsoft’s contribution is projected to decline by 25 percentage points to approximately 9%. The primary driver of S&P 500 earnings growth is shifting from large technology platforms to the semiconductor industry.