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「ME 730」: Real Impact
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The Earnings Are Beating. The Stocks Aren't Rewarding It.
88% of S&P 500 companies are beating earnings estimates, with blended growth at 24.7% YoY above the 23.3% expected at quarter-end. The Magnificent 7 specifically are projected for a 31.1% earnings surge. (Forbes)
Yet the Nasdaq still fell 2.9% last week (Yahoo Finance) on chip weakness. Strong fundamentals aren't translating to price that gap is exactly what tomorrow's reports need to close.
Semiconductor Growth Is Almost Absurd Right Now
Semiconductor sales grew 79% YoY in Q1 2026, up from 38% in Q4 2025 and BNP Paribas expects Q2 growth to hit 132%. (Yahoo Finance)
Data center capex from the top five hyperscalers is projected to grow 79% YoY to $644 billion in 2026. (Yahoo Finance)
That's the scale of bet being placed on AI right now tomorrow's Alphabet/Tesla numbers either justify it or don't.