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Japanese (NIKKEI) Tech Sector Analysis

UpdatedMay 25, 2026
DataAggregated Company Financials
Companies669
  • 7D7.0%
  • 3M28.4%
  • 1Y94.1%
  • YTD40.4%

Over the last 7 days, the Tech industry has risen 7.0%, driven by gains from Kioxia Holdings of 26%. This means that the industry has gained 94% over the past year. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 25 May 2026JP¥217.7tJP¥74.0tJP¥6.3t16x34.4x2.9x
Wed, 22 Apr 2026JP¥188.6tJP¥71.7tJP¥5.6t16.4x33.7x2.6x
Fri, 20 Mar 2026JP¥163.7tJP¥72.3tJP¥5.6t15.8x29.2x2.3x
Sun, 15 Feb 2026JP¥170.8tJP¥73.0tJP¥5.7t16.5x30x2.3x
Tue, 13 Jan 2026JP¥159.2tJP¥71.7tJP¥5.3t17.5x29.9x2.2x
Thu, 11 Dec 2025JP¥153.2tJP¥71.6tJP¥5.3t16.9x28.9x2.1x
Sat, 08 Nov 2025JP¥151.2tJP¥71.5tJP¥5.4t17x28.2x2.1x
Mon, 06 Oct 2025JP¥137.9tJP¥70.8tJP¥5.0t16.9x27.7x1.9x
Wed, 03 Sep 2025JP¥129.5tJP¥75.4tJP¥5.1t16.9x25.3x1.7x
Fri, 01 Aug 2025JP¥126.2tJP¥70.9tJP¥5.0t17x25.2x1.8x
Sun, 29 Jun 2025JP¥125.5tJP¥70.6tJP¥5.2t16.2x24.1x1.8x
Tue, 27 May 2025JP¥123.0tJP¥75.5tJP¥5.4t15.5x22.9x1.6x
Thu, 24 Apr 2025JP¥110.4tJP¥74.2tJP¥5.6t14.9x19.9x1.5x
Sat, 22 Mar 2025JP¥122.4tJP¥74.5tJP¥5.6t15.9x22x1.6x
Mon, 17 Feb 2025JP¥129.4tJP¥75.7tJP¥5.9t15.7x21.9x1.7x
Wed, 15 Jan 2025JP¥124.8tJP¥73.4tJP¥5.3t16.1x23.7x1.7x
Fri, 13 Dec 2024JP¥126.7tJP¥72.5tJP¥5.1t16.7x24.7x1.7x
Sun, 10 Nov 2024JP¥129.1tJP¥72.3tJP¥5.0t16.3x25.7x1.8x
Tue, 08 Oct 2024JP¥129.4tJP¥71.7tJP¥5.1t16.4x25.6x1.8x
Thu, 05 Sep 2024JP¥124.5tJP¥71.9tJP¥5.1t16.3x24.6x1.7x
Sat, 03 Aug 2024JP¥119.9tJP¥71.2tJP¥5.0t15.2x24x1.7x
Mon, 01 Jul 2024JP¥137.7tJP¥70.5tJP¥4.8t17.2x28.6x2x
Wed, 29 May 2024JP¥135.3tJP¥70.6tJP¥4.8t16.6x28.1x1.9x
Fri, 26 Apr 2024JP¥127.3tJP¥70.0tJP¥4.6t17x27.9x1.8x
Sun, 24 Mar 2024JP¥139.6tJP¥70.3tJP¥4.6t18x30.6x2x
Tue, 20 Feb 2024JP¥131.6tJP¥70.3tJP¥4.6t17.6x28.9x1.9x
Thu, 18 Jan 2024JP¥123.1tJP¥71.4tJP¥4.8t17.2x25.9x1.7x
Sat, 16 Dec 2023JP¥116.8tJP¥71.3tJP¥4.8t16.7x24.6x1.6x
Mon, 13 Nov 2023JP¥111.6tJP¥70.9tJP¥4.7t16.4x23.5x1.6x
Wed, 11 Oct 2023JP¥107.5tJP¥70.4tJP¥5.0t16.5x21.5x1.5x
Fri, 08 Sep 2023JP¥112.0tJP¥70.4tJP¥5.0t17.1x22.4x1.6x
Sun, 06 Aug 2023JP¥109.9tJP¥69.6tJP¥5.0t16.1x22x1.6x
Tue, 04 Jul 2023JP¥116.2tJP¥69.6tJP¥5.1t16.7x22.6x1.7x
Thu, 01 Jun 2023JP¥108.4tJP¥69.5tJP¥5.1t15.7x21.1x1.6x
Price to Earnings Ratio

21.1x


Total Market Cap: JP¥108.4tTotal Earnings: JP¥5.1tTotal Revenue: JP¥69.5tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Tech Sector Price to Earnings3Y Average 25.8x202420252026
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 34.4x which is higher than its 3-year average PE of 25.8x.
  • The 3-year average PS ratio of 1.8x is lower than the industry's current PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 7.1% per year over the last three years.
  • Revenues for these companies have grown 2.1% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

JP Market1.18%
Tech7.03%
Communications13.58%
Semiconductors8.71%
Electronic Equipment and Components7.14%
Software5.17%
IT3.11%
Tech Hardware1.04%
Industry PE
  • Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 29.6x.
    • Analysts are expecting annual earnings growth of 24.9%, which is higher than its past year's earnings growth of 6.9% per year.
  • Investors are most pessimistic about the Tech Hardware industry, which is trading below its 3-year average of 18.2x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 6.9% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 7.7% 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¥64.98k26.3%
+JP¥7.4t		3,028.6%PE64x
6981 Murata ManufacturingJP¥7.95k28.8%
+JP¥3.2t		286.0%PE61.9x
4062 IbidenLtdJP¥20.87k33.5%
+JP¥1.5t		674.7%PE91.5x
6762 TDKJP¥3.74k25.6%
+JP¥1.4t		145.6%PE36.3x
8035 Tokyo ElectronJP¥52.23k6.0%
+JP¥1.3t		123.6%PE41x

Latest News

6762
JP¥3,741.00
TDK
7D
25.6%
1Y
145.6%
285A
JP¥64,980.00
Kioxia Holdings
7D
26.3%
1Y
3,028.6%
6857
JP¥27,845.00
Advantest
7D
6.5%
1Y
292.1%
Narrative Update • May 24

6857: AI And HPC Optimism Will Outpace Earnings Despite Recent Upgrade

Analysts have raised their price target on Advantest to ¥23,000 from about ¥21,865. They cite updated assumptions for fair value, discount rate, revenue growth, profit margins, and future P/E following recent research that includes an upgrade at a major brokerage.
268A
JP¥2,602.00
Rigaku Holdings
7D
-6.6%
1Y
269.6%
6740
JP¥63.00
Japan Display
7D
-10.0%
1Y
293.8%
8035
JP¥52,230.00
Tokyo Electron
7D
6.0%
1Y
123.6%
Narrative Update • May 21

8035: Buybacks And Chip Capacity Interest Will Support A Balanced Outlook

Analysts have lifted their fair value estimate for Tokyo Electron from ¥49,214 to ¥51,486, citing updated assumptions around discount rate, revenue growth, profit margin and future P/E as the key drivers of the new price target framework. What's in the News Tokyo Electron declared a dividend of ¥364 per share for the fiscal year ended March 31, 2026, compared with ¥327 per share a year earlier, with payment scheduled for June 2, 2026 (Key Developments).
6723
JP¥4,282.00
Renesas Electronics
7D
15.7%
1Y
145.3%
Narrative Update • May 21

6723: Space And GaN Power Opportunities Will Support Future Upside Potential

Analysts have kept their ¥4,500 price target for Renesas Electronics unchanged, citing updated assumptions that include a slightly higher discount rate, marginally adjusted revenue growth and profit margin expectations, and a small tweak to the future P/E outlook. What's in the News Renesas is holding an Analyst/Investor Day, giving the market fresh detail on its medium term priorities and capital allocation plans (Analyst/Investor Day).
3132
JP¥3,205.00
Macnica Holdings
7D
-4.4%
1Y
82.4%
6777
JP¥28,330.00
santec Holdings
7D
-12.3%
1Y
508.6%
6146
JP¥69,580.00
Disco
7D
9.6%
1Y
103.0%
6701
JP¥4,110.00
NEC
7D
-1.2%
1Y
8.4%
Narrative Update • May 18

6701: Physical AI Partnership Will Support Stronger Future Upside

Analysts have trimmed their fair value estimate for NEC from ¥7,980.52 to ¥7,786.31 as they reset assumptions around profit margins and future P/E, while also applying a slightly lower discount rate and updated revenue growth outlooks. What's in the News SoftBank, NEC, Sony and Honda agreed to form a new company focused on "physical AI," highlighting NEC's role in a broader Japanese technology collaboration (Nikkei).
8060
JP¥3,551.00
Canon Marketing Japan
7D
-7.6%
1Y
33.5%
4062
JP¥20,870.00
IbidenLtd
7D
33.5%
1Y
674.7%
Analysis Article • May 14

Results: Ibiden Co.,Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

The investors in Ibiden Co.,Ltd. 's ( TSE:4062 ) will be rubbing their hands together with glee today, after the share...
4768
JP¥2,857.00
Otsuka
7D
-3.9%
1Y
-3.0%
Analysis Article • May 08

We Like The Quality Of Otsuka's (TSE:4768) Earnings

The market seemed underwhelmed by last week's earnings announcement from Otsuka Corporation ( TSE:4768 ) despite the...
6981
JP¥7,946.00
Murata Manufacturing
7D
28.8%
1Y
286.0%
4684
JP¥4,080.00
OBICLtd
7D
-1.5%
1Y
-21.8%