Wall Street's two largest investment banks forecast that American corporate profits are beginning to move away from the dominance of large technology stocks.

Some top strategists on Wall Street see preliminary signs that U.S. corporate profits are expanding beyond the mega-cap tech stocks at the core of the artificial intelligence boom. Although the earnings reporting season is still in its early stages, analyses from J.P. Morgan show that about half of the S&P 500 companies that have already provided guidance on their performance for 2026 are exceeding expectations. "As the majority of companies reporting earnings currently come from industries outside of the technology sector, this trend indicates growth in other industries this year," strategist Dubravko Lakos-Bujas wrote in a report. Goldman Sachs also expects profits to support growth. A team of strategists led by Ben Snider predicts that the economy will experience strong growth in the first half of 2026, which "will benefit smaller-scale, more cyclical stocks in the short term more than the largest stocks in the market." After heavyweight tech stocks have dominated the market for three consecutive years, other indicators also support a more widespread uptrend in the market.