# The S&P 500 fell 1.2% in its biggest drop since March while a gauge of chipmakers sank 4%.

*semiconductor · news · 2026-05-17 · Moneycontrol*

## Key points

- Chip stocks now comprise 18% of the S&P 500, a two-decade high in concentration.
- Sandisk shares have surged nearly 500% year-to-date, far outpacing other chipmakers.
- Amazon, Microsoft, Alphabet, and Meta plan nearly $700 billion in capex this year.
- Micron earnings are projected to jump 670% in 2026, reaching $65.8 billion.
- Analysts warn the sector's concentration heightens market vulnerability if chip momentum reverses.

**Companies:** Nvidia Corp., Amazon.com Inc., Microsoft Corp., Alphabet Inc., Apple Inc., Micron Technology Inc., Sandisk Corp.
**Countries:** United States

[Read the full story on Moneycontrol](https://www.moneycontrol.com/news/business/volatile-chipmaker-stocks-emerge-as-key-driver-of-s-p-500-rally-13921654.html)

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