Wall Street's AI earnings excitement spills into 2027 but risks market 'air pocket'

Wall Street analysts aren't hiding how excited they are about the AI-related profit parade. Just look at the concentration of earnings estimates revisions within the S&P 500 (^GSPC). About 40% of the year-to-date revisions to S&P 500 earnings estimates for 2026 are attributable to the semiconductor and hardware industries, according to a new analysis from Barclays strategist Venu Krishna. Zoom out to 2027, and the concentration becomes even more stark: A substantial 75% of the year-to-date estimate revisions for that year come from semis and hardware.