S&P 500 Earnings Growth Driver Shifts to Semiconductor Industry, Q2 Expected to Contribute 48% to New Record

BlockBeats News, July 22nd, The Kobeissi Letter published an article stating that the contribution of tech stocks to profit growth in the S&P 500 index has reached a historical high. In the first quarter of 2026, Amazon, Alphabet, Meta, and Microsoft together accounted for approximately 34% of the S&P 500 index's year-over-year earnings per share growth, while semiconductor companies contributed another 31%. The remaining components collectively contributed about 36%.

The above two types of companies together contributed 65% to the first-quarter profit growth of the S&P 500 index, higher than the 52% in the same period of 2025, indicating that index profit growth is still highly concentrated in large tech companies and the semiconductor industry.

Looking ahead to the second-quarter earnings season, the contribution of semiconductor companies to the S&P 500 index's profit growth is expected to increase by 17 percentage points from the first quarter, rising to a record 48%; while the contribution of Amazon, Alphabet, Meta, and Microsoft is expected to decrease by 25 percentage points to around 9%. The dominant force driving the profit growth of the S&P 500 index is shifting from large tech platform companies to the semiconductor industry.