US Tech Stock Growth: Dead Without Nvidia (NVDA) and Micron (MU)?

▲ Nvidia (Nvidia, NVDA)/AI-generated image

Excluding Nvidia (NVIDIA, NVDA) and Micron Technology (Micron Technology, MU), the US tech sector's Q2 earnings growth rate was found to plummet from 44.8% to 25%.

According to data from Zacks Investment Research, reported by Yahoo Finance on June 17 (local time), the total earnings of S&P 500 companies are expected to increase by 22.3% year-over-year in Q2. Revenue growth was projected at 11%. Among the 16 sectors classified by Zacks, 11 sectors are expected to see earnings growth.

The tech sector's Q2 earnings are expected to increase by 44.8% compared to the same period last year. However, excluding the contributions of Nvidia and Micron, the growth rate for the remaining tech companies drops to 25%. Zacks identified these two semiconductor companies as key drivers of the tech sector's performance growth.

Sheraz Mian, Director of Research at Zacks, commented, "The overall earnings trend remains strong and broad-based." Earnings estimates for the technology, energy, basic materials, utilities, and business services sectors have been revised upwards since early April. If the upward revisions for both the energy and technology sectors are excluded, the overall S&P 500 earnings estimate is tallied as having fallen.

The energy sector's Q2 earnings are projected to more than double year-over-year. However, the energy sector's share of total S&P 500 earnings in 2026 is only estimated to be around 6%. The shares of the technology and financial sectors were estimated at 38.7% and 17.3%, respectively.

Total S&P 500 earnings for 2026 are expected to increase by 21.1% compared to the previous year. Excluding the technology sector, the growth rate falls to 12.6%. Since early March, 11 out of 16 sectors have seen their annual earnings estimates rise, while the transportation, automotive, healthcare, and consumer discretionary sectors are facing downward pressure.

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