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Japanese (NIKKEI) Tech Sector Analysis

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

The Tech is pretty flat in the last 7 days, but Kioxia Holdings has stood out, gaining 18%. 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
Mon, 26 Jan 2026JP¥170.7tJP¥71.7tJP¥5.3t17.9x32x2.4x
Wed, 24 Dec 2025JP¥152.8tJP¥71.7tJP¥5.3t17.3x28.7x2.1x
Fri, 21 Nov 2025JP¥150.7tJP¥71.6tJP¥5.3t16.7x28.4x2.1x
Sun, 19 Oct 2025JP¥140.7tJP¥70.8tJP¥5.0t16.6x28.2x2x
Tue, 16 Sep 2025JP¥137.5tJP¥75.5tJP¥5.1t17.2x26.9x1.8x
Thu, 14 Aug 2025JP¥127.6tJP¥70.8tJP¥5.0t17.1x25.7x1.8x
Sat, 12 Jul 2025JP¥122.6tJP¥70.7tJP¥5.2t16.1x23.5x1.7x
Mon, 09 Jun 2025JP¥123.3tJP¥75.5tJP¥5.4t15.6x22.9x1.6x
Wed, 07 May 2025JP¥116.5tJP¥74.6tJP¥5.5t15.2x21.2x1.6x
Fri, 04 Apr 2025JP¥111.2tJP¥74.2tJP¥5.5t14.8x20.1x1.5x
Sun, 02 Mar 2025JP¥121.6tJP¥74.8tJP¥5.6t15.3x21.8x1.6x
Tue, 28 Jan 2025JP¥128.4tJP¥74.0tJP¥5.3t16.4x24.3x1.7x
Thu, 26 Dec 2024JP¥125.6tJP¥73.9tJP¥5.1t16.5x24.8x1.7x
Sat, 23 Nov 2024JP¥123.8tJP¥72.5tJP¥5.1t16.8x24.3x1.7x
Mon, 21 Oct 2024JP¥126.1tJP¥71.8tJP¥5.1t15.9x24.9x1.8x
Wed, 18 Sep 2024JP¥121.3tJP¥70.9tJP¥5.0t16.2x24.2x1.7x
Fri, 16 Aug 2024JP¥124.1tJP¥71.8tJP¥5.0t15.6x24.7x1.7x
Sun, 14 Jul 2024JP¥142.6tJP¥70.7tJP¥4.8t17.8x29.5x2x
Tue, 11 Jun 2024JP¥134.4tJP¥70.5tJP¥4.8t16.7x28x1.9x
Thu, 09 May 2024JP¥132.5tJP¥70.2tJP¥4.7t17.2x28.3x1.9x
Sat, 06 Apr 2024JP¥132.7tJP¥69.9tJP¥4.5t17.2x29.2x1.9x
Mon, 04 Mar 2024JP¥137.6tJP¥70.3tJP¥4.6t17.8x30.2x2x
Wed, 31 Jan 2024JP¥126.6tJP¥71.3tJP¥4.8t17.8x26.6x1.8x
Fri, 29 Dec 2023JP¥119.5tJP¥71.3tJP¥4.8t17x25.1x1.7x
Sun, 26 Nov 2023JP¥116.9tJP¥71.1tJP¥4.8t16.9x24.6x1.6x
Tue, 24 Oct 2023JP¥103.9tJP¥70.5tJP¥5.0t15.9x20.8x1.5x
Thu, 21 Sep 2023JP¥109.6tJP¥70.4tJP¥5.0t16.8x21.9x1.6x
Sat, 19 Aug 2023JP¥107.2tJP¥70.2tJP¥5.0t16.2x21.6x1.5x
Mon, 17 Jul 2023JP¥112.3tJP¥69.6tJP¥5.1t16.2x21.8x1.6x
Wed, 14 Jun 2023JP¥114.4tJP¥69.6tJP¥5.1t16.4x22.2x1.6x
Fri, 12 May 2023JP¥100.4tJP¥68.6tJP¥5.3t15.6x19.1x1.5x
Sun, 09 Apr 2023JP¥94.6tJP¥67.7tJP¥5.3t15x17.9x1.4x
Tue, 07 Mar 2023JP¥98.0tJP¥68.5tJP¥5.4t15.4x18.3x1.4x
Thu, 02 Feb 2023JP¥95.3tJP¥67.2tJP¥5.4t15.3x17.6x1.4x
Price to Earnings Ratio

17.6x


Total Market Cap: JP¥95.3tTotal Earnings: JP¥5.4tTotal Revenue: JP¥67.2tTotal 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 20.0%, 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¥17.34k17.5%
+JP¥1.5t		855.1%PE60.8x
6146 DiscoJP¥67.95k12.1%
+JP¥797.0b		43.3%PE56.1x
6857 AdvantestJP¥23.53k3.2%
+JP¥530.9b		134.1%PE65.4x
6723 Renesas ElectronicsJP¥2.51k8.0%
+JP¥336.2b		17.2%PS3.6x
7735 SCREEN HoldingsJP¥19.53k9.3%
+JP¥156.5b		73.2%PE20x

Latest News

6702
JP¥4,380.00
Fujitsu
7D
-4.2%
1Y
57.6%

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¥41,720.00
Tokyo Electron
7D
-1.0%
1Y
53.7%

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).
7735
JP¥19,525.00
SCREEN Holdings
7D
9.3%
1Y
73.2%

7735: Earnings Guidance And Dividend Policy Will Continue To Limit Share Upside

Analysts have nudged their price target for SCREEN Holdings to ¥12,000, with small tweaks to long term assumptions on discount rate, revenue growth, profit margin, and a future P/E now at 13.19x supporting this updated view. What's in the News Issued consolidated earnings guidance for the fiscal year ending March 31, 2026, with expected net sales of ¥621.0b, operating income of ¥117.0b, profit attributable to owners of parent of ¥88.0b, and basic earnings per share of ¥930.91 (company guidance).
6963
JP¥2,731.00
ROHM
7D
9.1%
1Y
78.5%

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¥67,950.00
Disco
7D
12.1%
1Y
43.3%

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¥5,835.00
NEC
7D
-1.1%
1Y
126.4%

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).
6723
JP¥2,513.50
Renesas Electronics
7D
8.0%
1Y
17.2%

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.
6762
JP¥2,000.00
TDK
7D
-4.2%
1Y
3.8%

6762: Battery Partnership Will Support Dividend Policy And Strengthen Medium Term Outlook

Analysts have nudged their fair value estimate for TDK to ¥2,610.88 from ¥2,576.18, reflecting slightly higher revenue growth and margin assumptions even though the stock was recently removed from a regional conviction list. Analyst Commentary Bullish Takeaways Bullish analysts view the refreshed fair value estimate of ¥2,610.88 as consistent with modestly stronger revenue and margin assumptions, which supports their view that the current fundamentals can justify a slightly higher valuation anchor.
4062
JP¥8,284.00
IbidenLtd
7D
5.7%
1Y
224.9%
6525
JP¥6,615.00
Kokusai Electric
7D
6.9%
1Y
181.1%

6525: Consensus-Level Earnings And Deferred Shipments Will Constrain Near-Term Upside Potential

Analysts have lifted their fair value estimate for Kokusai Electric from ¥4,938 to ¥5,363, citing updated assumptions around revenue growth, profit margins and future P/E that they see as better aligned with current earnings expectations and the latest Street research. Analyst Commentary Street research has shifted to a more balanced stance on Kokusai Electric, with coverage reinstated at a Neutral rating and a ¥4,300 price target, even as some analysts have raised their fair value assumptions.
7751
JP¥4,643.00
Canon
7D
-1.9%
1Y
-6.3%
6857
JP¥23,530.00
Advantest
7D
3.2%
1Y
134.1%

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).
4901
JP¥3,240.00
FUJIFILM Holdings
7D
-5.8%
1Y
-2.2%
285A
JP¥17,335.00
Kioxia Holdings
7D
17.5%
1Y
855.1%
6861
JP¥59,490.00
Keyence
7D
-3.8%
1Y
-13.2%

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¥3,332.00
Murata Manufacturing
7D
-2.4%
1Y
31.2%