S&P 500 Earnings Seen Jumping 27% on AI Spending as Nvidia, Micron Drive Over One-Third
Updated
Updated · Financial Times · Oct 7
S&P 500 Earnings Seen Jumping 27% on AI Spending as Nvidia, Micron Drive Over One-Third
3 articles · Updated · Financial Times · Oct 7
Summary
Goldman Sachs expects S&P 500 companies to post 27% year-on-year earnings growth in the September quarter, with reporting season starting next week and revenue forecast to rise 12%.
116% hyperscaler capital-spending growth in the quarter is powering the surge, extending an unprecedented third straight quarter of earnings growth above 25% outside post-crisis rebounds.
72 S&P 500 companies have issued positive guidance for the quarter, a record high, and all 11 sectors are expected to report earnings growth despite borrowing costs at multi-decade highs.
Nvidia and Micron are expected to generate more than one-third of the market's total earnings expansion, reinforcing concerns that record stock highs rest on an increasingly narrow group of AI-linked names.
114% earnings growth is also projected for energy companies after a 30% jump in WTI oil prices tied to the Strait of Hormuz closure, underscoring how much broader profits still depend on a few powerful themes.