On Wednesday, May 13, 2026, The S&P 500 and Nasdaq 100 set new all-time highs supported by strong corporate earnings and AI optimism. These highs occurred despite existing tensions in the Middle East. The markets instead  seem to be focusing on the resilient U.S. economic data and corporate performance.

The first quarter earnings season has been robust, with 79.6% of S&P 500 companies reporting results beating earnings per share (EPS)  estimates and 78% topping revenue forecasts. A look at the top gainers in the S&P 500 Index this year shows that most of them are in the Artificial Intelligence (AI)  industry. AI-related sectors, including semiconductors and memory chips, saw outsized gains, with Exchange Traded Funds (ETF) like Invesco QQQ Trust  and Roundhill Memory (DRAM) surging last week. Micron reached record highs after a price target upgrade to $740, reflecting bullish views on AI infrastructure demand. 

AI adoption is contributing to increase company growth and revenue. Companies that integrate AI into their operations often experience enhanced productivity, which leads to higher earnings. Many companies are currently investing in AI infrastructure, which is aimed at long-term value rather than immediate returns. 

The following are highlights summarizing corporate AI spending:

1. Companies have allocated roughly 1.7% of revenues to AI, doubling the allocation from 2025. 
2. 72% of CEO’s are the main decision makers on AI investments.
3. Many firms are prioritizing high impact AI projects over lower value ones.
4. 90% of executives believe that AI will deliver measurable returns by the end of 2026. 

Investor enthusiasm surrounding artificial intelligence continues to dominate trading activity, particularly within semiconductor stocks tied to the AI infrastructure buildout. Reuters reported that six ( Alphabet [aka Google], Amazon, Apple, Meta Platforms, Microsoft, and Nvidia) out of the "Magnificent Seven” megacap technology stocks reported gains. Tesla is the only company from the Magnificent Seven that did not report gains. 

AI adoption is driving increased annual revenue and reducing costs for companies, which can significantly enhance corporate earnings. As firms implement AI technologies, they often experience productivity gains that contribute to overall financial growth. The path to realizing these benefits may take time. Typically it takes 2-4 years to see a return on investment, however a small percentage of  AI projects see a return within a year. 

Tickers to consider:    JTAI, PPCB, FBRX, ATLX, BMNR, AGPU, BESS, ACTU

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