Woofun AI reports that Goldman Sachs strategist Ben Snider anticipates the AI investment cycle will remain the primary driver of S&P 500 second-quarter earnings. The firm projects year-over-year earnings growth of approximately 22% for the index, with NVIDIA and Micron expected to account for roughly 40% of this increase, while AI infrastructure stocks may contribute close to 60%.

Woofun AI notes that investor attention is shifting from capital expenditure commitments by mega-cap cloud providers to tangible returns on investment. While the S&P 500 has risen nearly 20% over the past year largely due to earnings expansion rather than valuation multiples, the market now demands evidence that massive AI spending translates into sufficient revenue, profit margins, and cash flow.