Nvidia, Micron, and Broadcom hold the stock market's fate in the palm of their h

Micron (MU) and Nvidia (NVDA) best deliver come earnings day, or else.

Quick insight: Goldman Sachs strategist Ben Snider estimated that AI infrastructure stocks will contribute nearly 60% of S&P 500 (^GSPC) EPS growth this quarter.

The top 10 contributing stocks are expected to account for nearly 75% of total S&P 500 earnings growth in Q2, with Micron, Nvidia, Exxon (XOM), and Broadcom (AVGO) accounting for about 54%.

The why: Investors will have a lot to assess as second quarter reporting season kicks off in mid-July. For one, they must monitor whether hyperscalers like Microsoft and Alphabet (GOOG, GOOGL) can justify their staggering capital expenditures to build out AI infrastructure.

Wall Street will also be laser-focused on how corporate margins are holding up against 3% inflation and the lingering supply chain disruptions caused by the Iran war. Additionally, corporate guidance must be heavily scrutinized to determine if the widening "K-shaped" consumer gap is further dampening sales volume for discount retailers and discretionary products.

What key challenges will companies face this earnings season?

How much will AI infrastructure stocks contribute to S&P growth?

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Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/article/nvidia-micron-and-broadcom-hold-the-stock-markets-fate-in-the-palm-of-their-hands-130753236.html)