Nvidia (NVDA) and Micron (MU) are at the center of S&P 500 (SPX) earnings growth, as Wolfe Research highlights the growing role of semiconductors. While markets remain on edge over the Iran conflict and rising oil prices, earnings have held up better than expected, with 2026 EPS estimates up about 3% year-to-date, according to Wolfe’s Chief Investment Strategist Chris Senyek. Much of that strength is coming from tech — especially chipmakers like Nvidia and Micron.
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Forget margin or options. Here's how the pros trade NVDAThe Technology sector is expected to account for more than half of the S&P 500’s earnings growth in 2026, according to Wolfe Research. Within that, the semiconductor group is projected to contribute about 39% of total year-over-year growth.
Micron’s Strong Q2 Reinforces AI-Driven Demand
Micron Technology has already shown that demand remains strong. On March 18, the company reported solid fiscal Q2 results, with earnings of $12.20 per share, beating estimates by a wide $3.41 margin.
The results highlight firm demand for memory, especially tied to AI and data center use. This trend continues to support earnings growth across the semiconductor space and reinforces why the group is playing such a key role in the broader market.
Analysts are also turning more bullish on Micron. Recently, top-rated Cantor Fitzgerald analyst C.J. Muse reiterated a Buy rating with a $700 price target, calling the stock a “Top Pick.” He sees a durable, multi-year upcycle driven by AI demand, with high-value memory products like HBM and advanced DRAM playing a key role. Muse added that recent concerns around pricing and demand are overstated and do not change the company’s long-term outlook.
All Eyes on Nvidia in May
Nvidia is now the next key focus. While Micron has already reported, investors are looking ahead to Nvidia’s results in May for further signals on AI demand. In its last update, the company beat estimates by $0.10, reinforcing its strong position in the space.
According to Wall Street estimates, Nvidia is expected to post adjusted earnings per share (EPS) of $1.76, up nearly 117% from the year-ago figure of $0.81. Moreover, sales are forecast to jump 78% year-over-year to $78.41 billion.
Analysts remain broadly positive on Nvidia’s outlook, with expectations for continued earnings growth driven by AI-related demand. At the same time, Wolfe Research strategist Chris Senyek noted that semiconductors have “cemented” their role as the most important group in the market, given their outsized contribution to earnings growth.
Which Memory Chip Stock Is the Better Buy, According to Analysts?
Using TipRanks’ Stocks Comparison tool, we compared major memory chip stocks. Among these stocks, Nvidia offers the higher upside of about 55.7% based on a price target of $273.57 and a Strong Buy rating, while Micron shows an upside of around 45.0% with a price target of $533.40.
