Semiconductor companies accounted for 48% of the S&P 500's year-over-year EPS growth in Q2 2026, a significant increase from 16% in Q1 2025. This surge in semiconductor earnings outpaced hyperscaler contributions, which fell from 36% to 9% over the same period, despite robust AI capital expenditure from companies like Microsoft, Amazon, Google, and Meta.
AI infrastructure spending is primarily accruing upstream in the supply chain, concentrating profit growth in semiconductor companies building the foundation of AI.