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Chart of the WeekJuly 28, 2026

Chart Of the Week – Semiconductors Have Become the Engine of Earnings Growth

The chart splits year-over-year growth in S&P 500 earnings per share into three buckets.

Chart Of the Week – Semiconductors Have Become the Engine of Earnings Growth

The chart splits year-over-year growth in S&P 500 earnings per share into three buckets. Semiconductors accounted for 48% of that growth in the second quarter of 2026, up from 16% in the first quarter of 2025. The hyperscalers moved the other way over the same stretch, from 36% to 9%. One reading is that the capital the hyperscalers are committing to AI infrastructure is landing as revenue further up the supply chain. The rest of the index has contributed a steadier share throughout, between 36% and 48%.

Source: J.P. Morgan Asset Management, Guide to the Markets (July 2026). Rebuilt by Waterloo Capital. Columns may not sum to 100% due to rounding.

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