BlockBeats news, on July 22, The Kobeissi Letter reported that technology stocks now account for a historic 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, semiconductor companies added another 31%, and the remaining components contributed approximately 36%.
Together, these two categories 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 in the index remains highly concentrated among large technology companies and the semiconductor industry.
Looking ahead to the second-quarter earnings season, semiconductor companies are expected to contribute 17 percentage points more to S&P 500 earnings growth than in the first quarter, rising to a record 48%; meanwhile, the contributions from Amazon, Alphabet, Meta, and Microsoft are forecast 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.