Goldman Sachs has forecast that Nvidia (NVDA) and Micron (MU) could together account for roughly one-third of all S&P 500 earnings growth in 2026, underscoring the extraordinary concentration of profit power in the two semiconductor giants. The investment bank’s May 27 report highlights that AI infrastructure beneficiaries broadly are expected to generate nearly half of S&P 500 earnings per share growth in both 2026 and 2027, with chipmakers, hardware firms, and even utilities riding the data center boom.
Nvidia, the dominant AI accelerator supplier, continues to benefit from relentless demand for GPUs used in model training and inference. The company posted record revenue of $82 billion in its latest fiscal quarter, up 85% year-over-year, with data center revenue reaching $75 billion. An 80 billion dollar share buyback program and dividend hike further reflect management's confidence. Analysts see a 45.4% upside in NVDA to an average price target of $306.46, though insider selling and export uncertainties to China remain risks.
Micron’s role, while less discussed, is equally critical. As AI models grow larger, the need for high-bandwidth memory surges, and Micron is a direct beneficiary of that cycle. UBS recently raised its Micron price target to $1,625, forecasting memory shortages through at least Q2 2028. The company’s revenue nearly tripled year-over-year to $24 billion, and a new 1-alpha DRAM facility in Virginia is part of a broader $200 billion U.S. manufacturing push. However, consensus analyst targets suggest a 21.6% downside, indicating caution.
Goldman also flagged that heavy capex by hyperscalers will eventually create depreciation headwinds, particularly in 2027, potentially eroding some of the earnings boost. CoinCodex forecasts suggest Nvidia and Micron may see stronger momentum in the second half of 2026, while Qualcomm—another AI-exposed chipmaker focused on mobile and automotive—offers a more balanced risk profile but with less explosive upside.
