Schwab Strategist Highlights Nvidia and Micron as Drivers of S&P Earnings While Bitcoin Surpasses $80,000

Schwab’s chief investment strategist Liz Ann Sonders identified Nvidia (NVDA) and Micron (MU) as the primary contributors to the S&P 500’s projected earnings growth for 2026. Together, the two chipmakers are expected to generate about 32% of the index’s year‑over‑year earnings increase.

AI Chip Earnings Concentration

Sonders explained that Nvidia alone is forecast to deliver 18% of the S&P 500’s earnings growth, while Micron’s AI‑focused memory products add another 14 percentage points. She described the shift toward these concentrated winners as the market’s defining dynamic and called the resulting rotation “the new momentum trade.”

Bitcoin Breaks $80,000 Amid Market Stress

On the same day, Bitcoin (BTC) moved above the $80,000 level, reaching a multi‑month high above $81,000 before settling near $78,400. The cryptocurrency posted a weekly gain of over 20%.

The rally coincided with heightened bond market stress, dollar weakness, and the Treasury Department’s decision to expand long‑term bond buybacks. Schwab’s market note labeled this environment a “debasement trade,” suggesting capital is flowing into scarce assets such as Bitcoin and gold.

Key Questions for Traders

• Can the concentrated AI earnings from Nvidia and Micron sustain their growing weight in the S&P 500?
• Will Bitcoin’s breakout above $80,000 signal a lasting shift toward hedging assets, or is it a short‑term price spike?

Investors will also be watching Nvidia’s earnings report and commentary from the Federal Reserve’s annual Jackson Hole symposium later this week for additional guidance.