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Broadcom AVGO) delivered another outstanding quarter on Wednesday evening this week, but even exceptional growth wasn't enough to satisfy the market's lofty expectations. AVGO shares fell nearly 3% following the report and are now down almost 15% over the last month at around $358 a share, leaving the stock more than 25% below its all-time high reached in June. The pullback may look tempting considering Broadcom's rapidly expanding artificial intelligence business, but investors should weigh the chip giant's tremendous growth prospects against a valuation that still prices in plenty of future success. Image Source: Zacks Investment Research Broadcom's fiscal Q3 revenue soared 85% year over year to a record $29.59 billion, while adjusted earnings nearly doubled to $3.32 per share. The results topped Wall Street’s sales and EPS expectations by 0.41% and 3.11%, respectively. Furthermore, free cash flow was equally impressive, surging 95% to $13.7 billion. Image Source: Zacks Investment Research Most importantly, AI semiconductor revenue skyrocketed 221% to $16.7 billion, driven by custom AI accelerators and networking products. Broadcom expects AI semiconductor sales to accelerate further to $21.7 billion in Q4, representing 236% growth from the comparable period. This comes as Broadcom has substantial exposure to hyperscale AI spending through customers such as Alphabet GOOGL) and Meta Platforms META). Its custom accelerators give these companies another avenue for scaling AI infrastructure alongside chips from AI leader Nvidia NVDA). Even more impressive, management now sees roughly $115 billion of AI semiconductor revenue in its current fiscal 2027, up from its previous outlook of more than $100 billion, with the opportunity potentially doubling again to around $230 billion in FY28. The selloff was largely tied to Broadcom's near-term outlook rather than its Q3 performance. Management guided for Q4 revenue of approximately $34.8 billion, representing phenomenal growth of 93% YoY. However, the outlook fell slightly short of some Wall Street forecasts near $35 billion-$35.4 billion. That highlights Broadcom's biggest near-term challenge: expectations have become extraordinarily high. When investors are pricing in triple-digit AI growth, even a slight guidance shortfall can pressure the stock. Broadcom's post-earnings dip has made its valuation more appealing, with AVGO now trading at 34X forward earnings. This is slightly beneath its Zacks Electronics-Semiconductors Industry average but still noticeably above the benchmark S&P 500’s 21X. The premium to the broader market isn't necessarily unjustified considering Broadcom's extraordinary AI growth, robust free cash flow, and rapidly expanding earnings outlook. That said, it leaves the stock vulnerable whenever results or guidance merely meet rather than dramatically exceed Wall Street expectations. Image Source: Zacks Investment Research Broadcom's post-earnings selloff appears to be more about sky-high expectations than deteriorating fundamentals. AI semiconductor revenue is more than tripling, management has raised its long-term AI outlook, and relationships with hyperscalers such as Alphabet and Meta provide excellent exposure to the ongoing AI infrastructure buildout. Therefore, the pullback is certainly making AVGO more attractive for long-term investors, but it may still be a little early to aggressively buy the dip while Wall Street digests the company's Q4 outlook. For now, Broadcom stock lands a Zacks Rank #3 (Hold), suggesting investors may want to watch whether post-earnings estimate revisions can improve the case for AVGO after its recent decline. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: Although corporate earnings have trended positively over the past two years, the current momentum is truly exceptional. Growth is not only rapid and accelerating but also widely distributed across sectors and steadily expanding. This broad-based strength creates a highly supportive backdrop for the market. The Q2 earnings season is ‘officially’ not over yet, with roughly a dozen S&P 500 members yet to come out with their quarterly results. But for all practical purposes, the Q2 reporting cycle is now behind us, and we are starting to shift our attention to the Q3 earnings season. For 2026 Q3, the expectation is that total S&P 500 earnings will increase +23.0% from the same period last year on +11.1% higher revenues, with 14 of the 16 Zacks expected to enjoy positive earnings growth and 6 sectors producing double-digit growth. This will be the most broad-based earnings growth performance in recent times. With Conglomerates (-35.4%) and Consumer Staples (-0.1%) as the only Zacks sectors expected to have lower Q3 earnings relative to the year-earlier period, the quarter is on track to produce an impressively broad-based growth performance. Alphabet (GOOGL), Micron (MU), and Nvidia (NVDA) continue to be material contributors to the Tech sector’s growth picture. Excluding these three companies, Q3 earnings for the rest of the Tech sector would be +18.7% (vs. +40.5% otherwise). The chart below shows S&P 500 expectations for 2026 Q2 in terms of what was achieved in the preceding four periods and what is currently expected for the following three quarters. Image Source: Zacks Investment Research The chart below shows the overall earnings picture for the S&P 500 index on an annual basis. Image Source: Zacks Investment Research The chart below shows the significant contribution of the Tech sector to the aggregate growth picture. The chart also shows how critical Nvidia, Micron, and Alphabet are to the 2026 aggregate growth tally. Image Source: Zacks Investment Research The favorable revisions trend noted earlier in the context of Q3 estimates is also at play with estimates for the last quarter of the year, with mostly the same sectors enjoying positive revisions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Broadcom AVGO) is scheduled to report results for its fiscal third quarter after-market hours on Wednesday, September 2, with Wall Street looking for another quarter of exceptional growth. This comes as custom AI accelerators, networking chips, and its VMware integration continue to drive the company's expansion. Broadcom has already set a high bar by forecasting another major acceleration in AI semiconductor revenue, although AVGO shares are up a modest 7% year to date but have posted impressive gains of more than 125% in the last two years. Image Source: Zacks Investment Research The Zacks Consensus Estimate calls for Broadcom to post Q3 earnings of $3.22 per share, representing a remarkable 90% increase from EPS of $1.69 in the year-ago period. Quarterly revenue is projected at $29.47 billion, up nearly 85% from $15.95 billion in the prior-year quarter. Wall Street's sales forecast is still in line with management's guidance for roughly $29.4 billion in Q3 revenue, with Broadcom expecting adjusted EBITDA to equal approximately 68% of revenue, underscoring the company's tremendous profitability despite its rapid expansion. The expectations follow a record second quarter in which revenue climbed 48% to $22.18 billion, while adjusted EPS reached $2.44. Broadcom also generated an impressive $10.26 billion in free cash flow, or 46% of quarterly revenue. Notably, Broadcom has exceeded earnings expectations for 21 consecutive quarters with an average EPS surprise of 2.19% in its last four quarterly reports. Image Source: Zacks Investment Research More important than the headline numbers will be Broadcom's AI semiconductor business. After Q2 AI semiconductor revenue soared 143% to $10.8 billion, management expects the figure to reach approximately $16 billion in Q3, representing more than 200% YoY growth. That would also mark a nearly 50% sequential increase in just one quarter. Much of this growth is being fueled by Broadcom's custom AI accelerators, or X Application-Specific Purpose Units (XPUs), and its Ethernet networking portfolio, which allow hyperscalers to build increasingly large AI computing clusters. Broadcom's expanding list of partners is particularly noteworthy. The company has a multi-year partnership with Meta Platforms META) to support Meta’s MTIA custom AI chips, including a next-generation 2-nanometer accelerator. Broadcom is also working closely with OpenAI on custom AI accelerators, including a planned 10-gigawatt deployment and the recently unveiled Jalapeño Intelligence Processor. Furthermore, Broadcom has AI engagements with Alphabet's Google GOOGL) and Anthropic, giving it exposure to several of the world's largest AI infrastructure spenders. Broadcom's growth story extends beyond AI chips. VMware, which Broadcom acquired in 2023, provides virtualization and private-cloud software that allows enterprises to efficiently run and manage applications and computing workloads across their own data-center infrastructure. VMware Cloud Foundation (VCF) is increasingly being positioned as a platform for running traditional applications alongside newer AI workloads and is providing a nice boost to Broadcom’s software revenue. To that point, Broadcom's Infrastructure Software revenue rose 9% YoY to $7.2 billion in Q2, while annual recurring revenue (ARR) increased 17%. Management expects a sharp acceleration in Q3, forecasting Infrastructure Software revenue to increase 31% to $8.9 billion. Broadcom cited particularly strong adoption of VMware Cloud Foundation 9.1, which enables enterprises to run AI inference and Kubernetes, which is a central platform for orchestrating containerized applications and traditional virtualized workloads across Nvidia NVDA), AMD AMD) and Intel INTC) computing platforms. That makes VMware an important complement to Broadcom's booming semiconductor business, adding a recurring, high-margin software revenue stream while also giving the company another way to benefit from growing enterprise AI infrastructure spending. Broadcom occupies an increasingly important position in the AI chip market, but competition remains fierce. Nvidia remains the dominant supplier of general-purpose AI accelerators and is also pushing aggressively into the networking market. Meanwhile, Marvell Technology MRVL) competes directly with Broadcom in custom AI silicon and high-speed data-center connectivity. Broadcom's advantage is that hyperscalers increasingly want customized chips optimized for their own AI workloads, rather than relying exclusively on more expensive general-purpose GPUs. Broadcom doesn't necessarily have to displace Nvidia for its AI business to thrive, as it can capture a growing portion of the enormous AI infrastructure market alongside Nvidia. Broadcom’s outlook remains encouraging, with Zacks projections calling for the chip giant’s annual earnings to increase 72% this year to $11.74 per share versus EPS of $6.82 in fiscal 2025. Plus, FY27 EPS is projected to spike another 63% to $19.10. This comes as Broadcom’s top line is expected to expand over 65% in FY26 and FY27, with next year's sales projections heading north of $175 billion. Image Source: Zacks Investment Research Broadcom enters Wednesday's report with extremely high expectations, but its fundamentals continue to justify much of that optimism. AI semiconductor revenue is projected to exceed $16 billion in Q3 alone, VMware is strengthening the company's recurring software business, and partnerships with Meta, OpenAI, and other hyperscalers provide significant visibility into future AI infrastructure spending. That said, there is certainly execution risk when revenue and earnings are expected to rise at such extraordinary rates, making Broadcom's Q4 outlook especially important. Nevertheless, its expanding custom AI accelerator business and leadership in next-generation networking make Broadcom stock one of the most compelling ways to gain exposure to AI infrastructure growth. With AVGO trading at a reasonable 31X forward earnings multiple, Broadcom stock currently sports a Zacks Rank #2 (Buy), as EPS revisions for FY26 and FY27 are still sharply higher in the last 90 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Marvell Technology MRVL) shares fell 10% in Friday’s trading session despite the AI chip leader posting record Q2 results yesterday evening and raising its longer-term outlook. The sharp sell-off suggests investors wanted an even bigger beat following MRVL’s tremendous AI-fueled rally rather than signaling a meaningful deterioration in the company’s fundamentals. With data-center demand accelerating and management raising its current fiscal 2027 and FY28 revenue forecasts, Marvell's post-earnings dip may be starting to look more like a buying opportunity. Image Source: Zacks Investment Research Marvell delivered record quarterly revenue of $2.74 billion, rising over 36% from Q2 sales of $2 billion a year ago and topping estimates of $2.71 billion. Adjusted net income came in at $865.9 million, translating to record quarterly EPS of $0.94, which climbed 40% YoY and edged Q2 expectations of $0.93 per share. More importantly, Marvell's critical data-center business generated a record $2.17 billion, surging 46% from the prior-year quarter and accounting for 79% of total revenue. CEO Matt Murphy also stated that AI-related bookings remain exceptionally strong, with Marvell expecting its growth rate to accelerate during the second half of the year. For Q3, Marvell expects revenue of approximately $3.15 billion, representing roughly 15% sequential growth and more than 50% YoY growth, along with adjusted EPS of $1.10 at the midpoint (+44% YoY growth). Image Source: Zacks Investment Research Arguably the most encouraging part of Marvell's Q2 report was another increase to its longer-term guidance. Management now projects FY27 revenue of roughly $12 billion, up from its previous $11.5 billion forecast and implying approximately 45% annual growth. Data-center revenue is expected to surge about 60%. Marvell also raised its FY28 revenue target to $18 billion from $16.5 billion, with data-center sales expected to grow more than 60% as custom AI silicon and connectivity demand accelerates. So why is MRVL falling? Expectations were extremely elevated following the stock's massive rally this year, with shares still up +150% YTD. Investors also appear disappointed that Marvell's recently expanded custom-chip relationship with Alphabet's GOOGL) Google may not provide a significant incremental revenue boost until FY29, while the growing mix of custom silicon has raised some concerns about margins. Friday's decline has taken some of the froth out of Marvell's valuation, although MRVL is certainly not cheap at over $200 a share. Shares are still trading over 50X earnings, but were at more than 70X before the report. That said, continued earnings growth and upward EPS revisions following Marvell's strong outlook could help the company grow into its premium multiple. Image Source: Zacks Investment Research Marvell's Q2 results don't appear to justify a fundamental change in the bullish AI thesis. Revenue and earnings reached record levels, data-center sales surged 46%, and management substantially raised its FY27 and FY28 growth outlook. There are legitimate reasons for some caution regarding Marvell's premium valuation, margin pressure, and the timing of its Google opportunity. Still, the 10% post-earnings dip makes MRVL increasingly attractive for growth-oriented investors willing to tolerate volatility. Adding to that case, MRVL currently sports a Zacks Rank #2 (Buy), thanks to what had already been a pleasant trend of upward earnings estimate revisions, suggesting it may not be too soon to start buying the dip following Friday's sharp pullback. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: The overall earnings picture has been positive over the last two years, but it has not been this strong in quite some time. The earnings growth pace is not only strong and accelerating but also broad-based and continuing to improve. In other words, we are experiencing a very favorable earnings setup for the market. For 2026 Q3, the expectation is that total S&P 500 earnings will increase +22.6% from the same period last year on +10.9% higher revenues, with 14 of the 16 Zacks expected to enjoy positive earnings growth and 5 sectors producing double-digit growth. This will be the most broad-based earnings growth performance in recent times. The revisions trend remains positive, sustaining the favorable revisions trend that has been in place for a year now. Since the start of Q3 in July, earnings estimates have moved higher for half of the 16 Zacks sectors. Alphabet GOOGL, Micron MU, and Nvidia NVDA continue to be material contributors to the Tech sector’s growth picture. Excluding these three companies, Q3 earnings for the rest of the Tech sector would be +18.9% (vs. +39.3% otherwise). The chart below shows S&P 500 expectations for 2026 Q2 in terms of what was achieved in the preceding four periods and what is currently expected for the following three quarters. Image Source: Zacks Investment Research The chart below shows the overall earnings picture for the S&P 500 index on an annual basis. Image Source: Zacks Investment Research The chart below shows the significant contribution of the Tech sector to the aggregate growth picture. The chart also shows how critical Nvidia, Micron, and Alphabet are to the 2026 aggregate growth tally. Image Source: Zacks Investment Research The favorable revisions trend noted earlier in the context of Q3 estimates is also at play with estimates for the last quarter of the year, with mostly the same sectors enjoying positive revisions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Outside of Nvidia NVDA), Marvell Technology MRVL) will provide the semiconductor market’s most closely watched earnings report this week when it posts Q2 results after the closing bell on Thursday, August 27. Marvell has become a prime beneficiary of the AI infrastructure boom through custom AI silicon, optical interconnects, and Ethernet switching, with hyperscale relationships involving Amazon AMZN), Microsoft MSFT), and Alphabet’s GOOGL) Google. Adding to the anticipation is that Marvell’s stock has skyrocketed +180% this year, vastly outperforming Nvidia and the broader market. Even after the surge, however, MRVL is trading more than 25% below its 52-week and all-time high of $329 a share. Image Source: Zacks Investment Research The Zacks Consensus Estimate calls for Marvell to post Q2 revenue of $2.71 billion, representing 35% growth from $2.01 billion in the prior year quarter. Adjusted EPS is expected at $0.93, up nearly 39% from a year ago. Notably, these estimates are almost directly in line with Marvell’s guidance for Q2 revenue of $2.7 billion, plus or minus 5%, and adjusted EPS of $0.93, plus or minus $0.05. More important than a modest Q2 beat may be Marvell’s outlook for continued AI-driven data-center growth. Data-center revenue reached $1.83 billion in Q1, rising 27% YoY and representing 76% of total sales, giving investors a high bar to measure against Marvell’s Q3 guidance and longer-term growth expectations. Marvell's AI opportunity has broadened considerably beyond its work with Amazon's custom Trainium chips and Microsoft's Maia accelerators. Its newly expanded agreement with Alphabet covers custom silicon tied to Google's custom AI chip ecosystem of Tensor Processing Units (TPUs), including AI inference accelerators, storage controllers, network-interface controllers, and memory-related chips. That puts Marvell in an increasingly important position as hyperscalers seek custom alternatives to Nvidia GPUs, although competition remains intense from Broadcom AVGO), Advanced Micro Devices AMD),and Astera Labs ALAB). Broadcom in particular remains a formidable competitor in custom AI silicon and has been a major Google TPU partner. The biggest argument against chasing Marvell stock before Q2 earnings is valuation. Following a massive year-to-date rally, MRVL trades at 17X forward sales and 74X forward earnings. Image Source: Zacks Investment Research However, the premium is backed by an exceptional growth outlook. Marvell expects total revenue to rise roughly 40% in its current fiscal 2027, followed by 45% growth in FY28 to around $16.5 billion. Notably, analyst expectations have moved even higher, with the Zacks Consensus now calling for FY28 sales of $16.63 billion. More importantly, Zacks Consensus projections call for Marvell’s EPS to increase 42% in FY27, with a nearly 53% spike projected in FY28 to $6.18 per share. Image Source: Zacks Investment Research Marvell's valuation leaves little room for a disappointing Q2 report or softer guidance, especially after its tremendous YTD rally. Still, Marvell's expanding relationships with Amazon, Microsoft, and Google, combined with rapid growth across custom AI chips and data-center connectivity, make MRVL one of the more compelling ways to participate in hyperscaler AI spending beyond Nvidia. Supporting that bullish outlook, Marvell stock currently sports a Zacks Rank #2 (Buy). Growth-oriented investors may still find MRVL attractive ahead of Q2 earnings, although the premium valuation makes the stock better suited for those comfortable with potentially significant post-earnings volatility. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Astera Labs, Inc. (ALAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The corporate earnings foundation remains exceptionally strong. S&P 500 profit growth has now posted 12 consecutive positive quarters, with momentum accelerating and expanding well beyond its initial Big Tech core. This sets a powerful backdrop as we finalize the Q2 earnings season—with just 32 S&P 500 members left to report—and turn our attention to Q3. The quarterly chart below details actual results alongside Q3 2026 growth expectations and forward projections. Image Source: Zacks Investment Research As you can see here, 2026 Q3 earnings for the S&P 500 index are expected to increase by +22.3% from the same period last year on +10.8% higher revenues. This would follow the unusually strong showing in 2026 Q2, when earnings are on track to increase by +43.5% on +15.2% higher revenues. The revisions trend has been positive, sustaining the favorable trend in place for almost a year now. The chart below shows how 2026 Q3 earnings growth expectations have evolved lately. Image Source: Zacks Investment Research As noted earlier, these favorable revision patterns are not a new development; they extend a tailwind that has been building for nearly a year. Historically, these upward adjustments were tightly concentrated in Technology and, more recently, Energy following Middle East supply disruptions. However, for Q3 2026, the constructive estimate revisions have broadened significantly, rising across 8 of the 16 Zacks sectors—including Transportation, Finance, Aerospace, Industrials, Utilities, and Construction, alongside Tech and Energy. Q2 Earnings Season Scorecard Through Friday, August 21st, we have seen quarterly results from 468 S&P 500 members, or 93.6% of the index’s total membership. Total earnings for these companies are up +40.6% from the same period last year on +14.1% revenue gains, with 84% of the companies beating EPS estimates and 76.9% of them beating revenue estimates. The comparison charts below put the Q2 earnings and revenue growth rates for these index members in a historical context. Image Source: Zacks Investment Research The comparison charts below put the Q2 EPS and revenue beats percentages in a historical context. Image Source: Zacks Investment Research The unusually strong earnings growth rate of +40.6% and revenue growth of +14.1% are benefiting from blockbuster results from Micron MU and Alphabet GOOGL. The chart below shows the reported Q2 earnings growth pictures, with and without Alphabet and Micron. Image Source: Zacks Investment Research The Q2 reporting cycle is in its final stretch now, with 9 of the 16 Zacks sectors having reported all of their results, including Energy, Finance, Construction, Basic Materials, Utilities, and others. This week’s line-up includes more than 100 companies, including 18 S&P 500 members. Notable companies reporting this week, in addition to prominent retailers like Best Buy, Ulta Beauty, and others, include Nvidia, Salesforce, Agilent Technologies, and more. The Retail Sector Scorecard For the Retail sector, we now have Q2 results from 24 of the 31 retailers in the S&P 500 index. Regular readers know that Zacks has a dedicated stand-alone economic sector for the retail space, which is unlike the placement of the space in the Consumer Staples and Consumer Discretionary sectors in the Standard & Poor’s standard industry classification. The Zacks Retail sector includes not only Walmart, Target, and other traditional retailers, but also online vendors like Amazon AMZN and restaurant players. The 24 Zacks Retail companies in the S&P 500 index that have already reported Q2 results include Walmart, Target, and others, as well as companies in the ecommerce and restaurant industries. We also have a number of restaurant companies on deck to report results this week. Total Q2 earnings for these 24 retailers that have reported are up +11.9% from the same period last year on +10.8% higher revenues, with 83.3% beating EPS estimates and 62.5% beating revenue estimates. The comparison charts below put the Q2 beats percentages for these retailers in a historical context. Image Source: Zacks Investment Research As you can see above, the revenue beats percentages for these companies are tracking significantly below the historical averages for this group, but EPS beats are far more numerous. With respect to earnings and revenue growth rates at this stage, we like to show the group’s performance with and without Amazon, whose results are among those of the 18 companies that have already reported. As we know, Amazon’s Q2 earnings were up +12.6% on +19.6% higher revenues, as it beat both EPS and top- line expectations. The two comparison charts below show the Q2 earnings and revenue growth relative to other recent periods, both with Amazon’s results (left side chart) and without Amazon’s numbers (right side chart) Image Source: Zacks Investment Research As you can see above, earnings for the group outside of Amazon are up +11.3% on a +7.3% top-line gain. The Earnings Big Picture The chart below shows the aggregate growth picture for the S&P 500 index on a calendar year basis. Image Source: Zacks Investment Research As with Q2 expectations, the Tech sector has an outsized impact on the annual earnings picture as well. Total Tech sector earnings are expected to increase +50.6% from the same period last year on +27.5% higher revenues. Excluding the Tech sector’s substantial contribution, total S&P 500 earnings for the year would be up +14.9% (vs. +27.1% otherwise). As we have repeatedly flagged in this space in recent weeks, contributions from Alphabet GOOGL, Micron MU, and Nvidia NVDA are also significant here, as the chart below shows. Image Source: Zacks Investment Research For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Tech & Energy Fuel S&P 500 Growth Engine Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research