--- title: "Nvidia, Broadcom Just Helped Break a 90-Year Earnings Trend—Now Comes the Hard Part" type: "News" locale: "en" url: "https://longbridge.com/en/news/299083599.md" description: "Nvidia and Broadcom's strong Q2 earnings drove S&P 500 profits up 31%, breaking a 90-year trend. AI stocks led with 54% EPS growth versus 14% for non-AI. RIA Advisors warns of future pressure, predicting either durable returns or margin normalization. Investors are advised to maintain positions while holding cash and bonds for safety." datetime: "2026-09-15T17:53:42.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/299083599.md) - [en](https://longbridge.com/en/news/299083599.md) - [zh-HK](https://longbridge.com/zh-HK/news/299083599.md) generator: "portal-rs" --- # Nvidia, Broadcom Just Helped Break a 90-Year Earnings Trend—Now Comes the Hard Part Strong quarterly results from **Nvidia Corporation** (NASDAQ:NVDA) and **Broadcom Inc** (NASDAQ:AVGO) show the AI trade continues to be alive and well. How alive is the AI trade? The strength of the sector is helping the S&P 500 do something not done in 90 years. ## AI Stock Strength Breaks 90-Year Trend In the second quarter, Nvidia reported earnings per share of $2.22, up 113.5% year over year. Broadcom’s latest quarterly results showed earnings per share of $3.32, up 96.4% year-over-year. Overall, S&P 500 earnings are up 31% in the second quarter of 2026, well above the 23% Wall Street expected, according to data from RIA Advisors. RIA Advisors shares a trend line that has held for 90 years in a newsletter. The S&P 500 earnings have stayed within a standard deviation of +/- 2, except for dropping below the floor in 2008. In 2026, earnings growth is now above the trend-line range for the first time. According to the report, the AI sector did most of the heavy lifting for earnings growth. AI names saw eps growth of 54% in the quarter, compared to 14% growth for non-AI names. RIA Advisors asks if "this time is different" for investors or if there should be skepticism on the earnings growth lasting. The S&P 500, which is tracked by the **SPDR S&P 500 ETF Trust** (NYSE:SPY), trades at 25.6x times trailing profits, which is above the typical bull market peak of 20.1x, according to RIA Advisors. **Read Also: S&P 500 Up 13% Six Months Into Iran War, and History Says That's Normal** ## What Happens Next Based on the trend line of the last 90 years, there will now be extreme pressure on the AI names for the third quarter and beyond. RIA Advisors predicts one of two things will happen next: "Either AI capital spending converts into durable returns and record margins hold, in which case earnings grow into the price, and the bull runs on." "Capex depreciation starts hitting the income statement, AI demand hits an air pocket, margins normalize, and profits fall back toward the trend they just escaped." RIA Advisors believes investors are pricing a higher likelihood of option one. The report says forward earnings estimates have been climbing, but forward multiples are not increasing. The report cautions that investors should ride the trend, but also keep cash on hand and invest in bonds for safety if option two happens. "The trend is your friend, right up until the bend at the very end. Position for the friend. Prepare for the bend." **Read Also: EXCLUSIVE: Top 12 Most-Searched Tickers in August on Benzinga Pro – SpaceX, Nebius Climb, Palantir Returns** *Photo: Shutterstock AI Generator* ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [SPY.US](https://longbridge.com/en/quote/SPY.US.md) - [IVV.US](https://longbridge.com/en/quote/IVV.US.md) - [VOO.US](https://longbridge.com/en/quote/VOO.US.md) - [SPLG.US](https://longbridge.com/en/quote/SPLG.US.md) - [SPXL.US](https://longbridge.com/en/quote/SPXL.US.md) - [UPRO.US](https://longbridge.com/en/quote/UPRO.US.md) - [SSO.US](https://longbridge.com/en/quote/SSO.US.md) - [SH.US](https://longbridge.com/en/quote/SH.US.md) - [SPXS.US](https://longbridge.com/en/quote/SPXS.US.md) - [SPXU.US](https://longbridge.com/en/quote/SPXU.US.md) - [SDS.US](https://longbridge.com/en/quote/SDS.US.md) - [SPYI.US](https://longbridge.com/en/quote/SPYI.US.md) - [JEPI.US](https://longbridge.com/en/quote/JEPI.US.md) - [XYLD.US](https://longbridge.com/en/quote/XYLD.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [NBIS.US](https://longbridge.com/en/quote/NBIS.US.md) - [PLTR.US](https://longbridge.com/en/quote/PLTR.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Andy Jassy Just Made a Move That Should Excite Micron and Broadcom Investors](https://longbridge.com/en/news/298700530.md) - [Nvidia CEO signals strong momentum for shareholders](https://longbridge.com/en/news/298712839.md) - [Jensen Huang Says Hyperscalers Get This ‘Almost Always Wrong’ — Nvidia Has a Workaround](https://longbridge.com/en/news/299073573.md) - [Nvidia's Customer Concentration Problem: CFO Says 'We Get Paid Twice'](https://longbridge.com/en/news/298946887.md) - [Exec tells investors to embrace AI: 'This thing is happening'](https://longbridge.com/en/news/298964114.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**