Nvidia, Micron to Drive One Third of S&P 500 2026 Earnings Growth

Nvidia (NVDA) and Micron (MU) are projected to contribute one third of S&P 500's earnings growth in 2026, according to Schwab's Liz Ann Sonders. Nvidia is expected to account for 18% of the year-over-year earnings growth, while Micron's AI memory chips will add another 14 percentage points. Sonders described the market's current dynamic as a rotation into concentrated winners, moving away from crowded positions. Nvidia's earnings report is anticipated after seven consecutive losing sessions, with prediction markets indicating a likely positive outcome. Bitcoin (BTC) surged above 81,000 dollars this week, before retreating to around 78,400 dollars at publication time, coinciding with increased bond market stress and dollar weakness following the Treasury Department's expansion of long-term bond buybacks. Sonders noted this pattern as a 'debasement trade', reflecting declining confidence in the dollar and Treasury policy, directing capital towards scarce assets like Bitcoin and gold. Traders are now assessing whether concentrated AI earnings can sustain record index weights and if Bitcoin's rise above 80,000 dollars signifies a lasting shift into hedges or merely a short squeeze.

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