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Japanese (NIKKEI) Tech Sector Analysis

UpdatedJan 26, 2026
DataAggregated Company Financials
Companies673
  • 7D0.9%
  • 3M13.6%
  • 1Y39.8%
  • YTD8.1%

Over the last 7 days, the Tech industry has remained flat, although notably Kioxia Holdings gained 15%. As for the the longer term, the industry is up 40% over the past 12 months. As for the next few years, earnings are expected to grow by 15% per annum.

Sector Valuation and Performance

Has the Japanese Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 27 Jan 2026JP¥170.7tJP¥71.7tJP¥5.3t17.9x32x2.4x
Thu, 25 Dec 2025JP¥153.2tJP¥71.7tJP¥5.3t17.2x28.8x2.1x
Sat, 22 Nov 2025JP¥147.0tJP¥71.6tJP¥5.3t16.9x27.7x2.1x
Mon, 20 Oct 2025JP¥140.7tJP¥70.8tJP¥5.0t16.6x28.2x2x
Wed, 17 Sep 2025JP¥139.1tJP¥75.5tJP¥5.1t17.3x27.2x1.8x
Fri, 15 Aug 2025JP¥125.4tJP¥70.8tJP¥5.0t17x25.2x1.8x
Sun, 13 Jul 2025JP¥122.9tJP¥70.7tJP¥5.2t16.2x23.6x1.7x
Tue, 10 Jun 2025JP¥124.6tJP¥75.5tJP¥5.4t15.8x23.2x1.6x
Thu, 08 May 2025JP¥117.4tJP¥74.6tJP¥5.5t15.3x21.4x1.6x
Sat, 05 Apr 2025JP¥106.8tJP¥74.2tJP¥5.5t14.1x19.3x1.4x
Mon, 03 Mar 2025JP¥121.6tJP¥74.8tJP¥5.6t15.3x21.8x1.6x
Wed, 29 Jan 2025JP¥127.0tJP¥74.0tJP¥5.3t16.5x24.1x1.7x
Fri, 27 Dec 2024JP¥125.6tJP¥73.9tJP¥5.1t16.5x24.8x1.7x
Sun, 24 Nov 2024JP¥123.8tJP¥72.5tJP¥5.1t16.8x24.3x1.7x
Tue, 22 Oct 2024JP¥126.6tJP¥71.8tJP¥5.1t16.1x25x1.8x
Thu, 19 Sep 2024JP¥121.6tJP¥70.9tJP¥5.0t16.2x24.2x1.7x
Sat, 17 Aug 2024JP¥128.5tJP¥71.8tJP¥5.0t16x25.6x1.8x
Mon, 15 Jul 2024JP¥142.5tJP¥70.7tJP¥4.8t17.8x29.5x2x
Wed, 12 Jun 2024JP¥134.8tJP¥70.5tJP¥4.8t16.7x28.1x1.9x
Fri, 10 May 2024JP¥131.7tJP¥70.2tJP¥4.7t17.1x28.2x1.9x
Sun, 07 Apr 2024JP¥132.7tJP¥69.9tJP¥4.5t17.2x29.2x1.9x
Tue, 05 Mar 2024JP¥139.4tJP¥70.3tJP¥4.6t17.8x30.6x2x
Thu, 01 Feb 2024JP¥126.9tJP¥71.4tJP¥4.7t17.8x26.8x1.8x
Sat, 30 Dec 2023JP¥119.2tJP¥71.3tJP¥4.8t17x25.1x1.7x
Mon, 27 Nov 2023JP¥116.9tJP¥71.1tJP¥4.8t16.9x24.6x1.6x
Wed, 25 Oct 2023JP¥104.4tJP¥70.7tJP¥5.0t15.9x20.7x1.5x
Fri, 22 Sep 2023JP¥107.8tJP¥70.4tJP¥5.0t16.7x21.6x1.5x
Sun, 20 Aug 2023JP¥107.2tJP¥70.2tJP¥5.0t16.2x21.6x1.5x
Tue, 18 Jul 2023JP¥112.3tJP¥69.6tJP¥5.1t16.2x21.8x1.6x
Thu, 15 Jun 2023JP¥114.8tJP¥69.6tJP¥5.1t16.4x22.3x1.7x
Sat, 13 May 2023JP¥101.4tJP¥68.7tJP¥5.3t15.7x19.2x1.5x
Mon, 10 Apr 2023JP¥94.6tJP¥67.7tJP¥5.3t15x17.9x1.4x
Wed, 08 Mar 2023JP¥98.0tJP¥68.5tJP¥5.4t15.4x18.3x1.4x
Fri, 03 Feb 2023JP¥96.2tJP¥67.3tJP¥5.4t15.3x17.8x1.4x
Price to Earnings Ratio

17.8x


Total Market Cap: JP¥96.2tTotal Earnings: JP¥5.4tTotal Revenue: JP¥67.3tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Tech Sector Price to Earnings3Y Average 24.4x202420252026
Current Industry PE
  • Investors are optimistic on the Japanese Information Technology industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 32.0x which is higher than its 3-year average PE of 24.4x.
  • The 3-year average PS ratio of 1.7x is lower than the industry's current PS ratio of 2.4x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 2.2% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the Japanese Tech sector?

JP Market-0.56%
Tech0.92%
Semiconductors5.16%
Communications-0.37%
Electronic Equipment and Components-1.39%
IT-1.68%
Tech Hardware-3.40%
Software-3.70%
Industry PE
  • Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 25.1x.
    • Analysts are expecting annual earnings growth of 19.9%, which is higher than its past year's earnings growth of 7.4% per year.
  • Investors are most pessimistic about the Communications industry, which is trading below its 3-year average of 25.9x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 20% over the next 5 years.
  • This is better than its past earnings growth rate of 7.4% per year.
  • In contrast, the IT industry is expected to see its earnings grow by 8.6% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
285A Kioxia HoldingsJP¥17.45k14.7%
+JP¥1.3t		916.3%PE61.2x
6857 AdvantestJP¥23.58k6.4%
+JP¥1.0t		156.7%PE65.5x
6146 DiscoJP¥66.50k6.5%
+JP¥442.4b		42.8%PE54.9x
7735 SCREEN HoldingsJP¥19.03k5.2%
+JP¥89.3b		77.9%PE19.5x
6963 ROHMJP¥2.70k8.5%
+JP¥81.8b		76.5%PS2.3x

Latest News

7735
JP¥19,030.00
SCREEN Holdings
7D
5.2%
1Y
77.9%

Is Now An Opportune Moment To Examine SCREEN Holdings Co., Ltd. (TSE:7735)?

Jan 26
Is Now An Opportune Moment To Examine SCREEN Holdings Co., Ltd. (TSE:7735)?
6762
JP¥1,919.00
TDK
7D
-4.7%
1Y
0.5%
6702
JP¥4,037.00
Fujitsu
7D
-11.5%
1Y
43.9%

6702: Higher Fair Value And AI Supply Chain Push Will Drive Upside

Analysts have raised their fair value estimate for Fujitsu from ¥4,400 to about ¥5,918, citing updated assumptions around revenue growth, profit margins and future P/E expectations. The revision also reflects Fujitsu’s recent removal from a regional conviction list as part of broader coverage changes.
8035
JP¥41,090.00
Tokyo Electron
7D
-2.6%
1Y
59.2%

8035: Higher Guidance And Dividend Policy Will Shape A Balanced Outlook

Analysts have raised their price target for Tokyo Electron from ¥34,725 to ¥38,593, citing updated assumptions for slightly higher revenue growth, a modestly stronger profit margin, and a higher future P/E multiple as key drivers of the revision. What's in the News Revised earnings guidance for the fiscal year ending March 31, 2026 now points to net sales of ¥2.38b and operating income of ¥586,000m, compared with the previous forecast of ¥2.35b in net sales and ¥570,000m in operating income (Key Developments).
6963
JP¥2,698.50
ROHM
7D
8.5%
1Y
76.5%

6963: Elevated Multiple And Cost Pressures Will Constrain Product Ramp Upside

Analysts have lifted their fair value estimate for ROHM from ¥2,204.55 to ¥2,240.91, reflecting updated assumptions around discount rates, profit margins and future P/E that slightly adjust their overall price target outlook. What's in the News ROHM revised its consolidated earnings guidance for the year ending March 31, 2026, now projecting net sales of ¥460,000m, operating profit of ¥5,000m, profit attributable to owners of parent of ¥9,000m, and net income per share of ¥23.31, compared with prior guidance of net sales of ¥440,000m, operating profit of ¥4,000m, profit attributable to owners of parent of ¥7,000m, and net income per share of ¥18.14 (Corporate guidance).
6146
JP¥66,500.00
Disco
7D
6.5%
1Y
42.8%

Results: Disco Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Jan 23
Results: Disco Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts
6701
JP¥5,611.00
NEC
7D
-6.5%
1Y
116.8%

6701: Future CSG Acquisition And Cloud Expansion Will Elevate Shareholder Risk

Analysts have nudged their price target for NEC slightly higher to $5,015.05 from $5,000, citing updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E as the key drivers of the change. What's in the News KDDI plans to deploy Netcracker Digital Commerce & Monetization, with NEC acting as the prime system integrator to support next generation mediation, resource utilization, and more flexible in house development for telecom operations (Client announcement).
6890
JP¥6,660.00
Ferrotec
7D
12.5%
1Y
146.3%
6723
JP¥2,355.00
Renesas Electronics
7D
1.4%
1Y
11.2%

6723: Future Margin Pressure From New Auto And IoT Platforms Will Persist

Analysts have trimmed their fair value estimate for Renesas Electronics from ¥2,000 to ¥1,950, reflecting updated assumptions for higher revenue growth, a lower profit margin, a slightly higher discount rate, and a higher future P/E multiple. What's in the News Renesas is expanding its software defined vehicle offering around the fifth generation R Car family, introducing the R Car X5H automotive SoC manufactured on a 3nm process and designed to run ADAS, in vehicle infotainment and gateway functions on a single chip, with reported power consumption up to 35% lower than previous 5nm solutions.
7751
JP¥4,494.00
Canon
7D
-3.7%
1Y
-9.5%
6857
JP¥23,575.00
Advantest
7D
6.4%
1Y
156.7%

6857: AI Tester Demand And Higher Margins Will Drive Future Upside

Analysts have increased their fair value estimate for Advantest from ¥16,000 to ¥26,100, citing updated assumptions that combine a slightly higher discount rate and P/E multiple with meaningfully higher projected profit margins and adjusted revenue growth expectations. What's in the News Advantest announced a share repurchase program of up to 18,000,000 shares, or 2.47% of outstanding shares, for up to ¥150,000 million, running through October 28, 2026, with the stated aim of shareholder returns and capital efficiency (Buyback Transaction Announcements).
6323
JP¥3,509.00
Rorze
7D
8.9%
1Y
102.6%
4901
JP¥3,172.00
FUJIFILM Holdings
7D
-6.6%
1Y
-6.7%
285A
JP¥17,450.00
Kioxia Holdings
7D
14.7%
1Y
916.3%
6861
JP¥58,390.00
Keyence
7D
-4.9%
1Y
-14.4%

Keyence Corporation's (TSE:6861) Popularity With Investors Is Under Threat From Overpricing

Jan 03
Keyence Corporation's (TSE:6861) Popularity With Investors Is Under Threat From Overpricing
6981
JP¥3,179.00
Murata Manufacturing
7D
-7.4%
1Y
26.4%