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Japanese (NIKKEI) Tech Sector Analysis

UpdatedJan 24, 2026
DataAggregated Company Financials
Companies673
  • 7D0.9%
  • 3M16.2%
  • 1Y39.8%
  • YTD8.1%

Last week, the Tech industry hasn't moved much but Kioxia Holdings is up 18% in that time. The past year has been better, since the industry has gained 40% in that time. Earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 25 Jan 2026JP¥170.7tJP¥71.7tJP¥5.3t17.9x32x2.4x
Tue, 23 Dec 2025JP¥152.6tJP¥71.7tJP¥5.3t17.2x28.7x2.1x
Thu, 20 Nov 2025JP¥146.1tJP¥71.6tJP¥5.3t16.5x27.5x2x
Sat, 18 Oct 2025JP¥140.7tJP¥70.8tJP¥5.0t16.6x28.2x2x
Mon, 15 Sep 2025JP¥137.5tJP¥75.5tJP¥5.1t17.1x26.8x1.8x
Wed, 13 Aug 2025JP¥126.6tJP¥70.8tJP¥5.0t17x25.5x1.8x
Fri, 11 Jul 2025JP¥122.6tJP¥70.7tJP¥5.2t16.1x23.5x1.7x
Sun, 08 Jun 2025JP¥123.3tJP¥75.5tJP¥5.4t15.6x22.9x1.6x
Tue, 06 May 2025JP¥116.5tJP¥74.6tJP¥5.5t15.2x21.2x1.6x
Thu, 03 Apr 2025JP¥114.9tJP¥74.2tJP¥5.5t15.2x20.7x1.5x
Sat, 01 Mar 2025JP¥121.6tJP¥74.8tJP¥5.6t15.3x21.8x1.6x
Mon, 27 Jan 2025JP¥129.9tJP¥74.0tJP¥5.3t16.5x24.6x1.8x
Wed, 25 Dec 2024JP¥125.5tJP¥73.9tJP¥5.1t16.4x24.8x1.7x
Fri, 22 Nov 2024JP¥122.9tJP¥72.5tJP¥5.1t16.5x24.2x1.7x
Sun, 20 Oct 2024JP¥126.1tJP¥71.8tJP¥5.1t15.9x24.9x1.8x
Tue, 17 Sep 2024JP¥122.6tJP¥71.7tJP¥5.1t16.2x24.3x1.7x
Thu, 15 Aug 2024JP¥124.2tJP¥71.8tJP¥5.0t15.5x24.6x1.7x
Sat, 13 Jul 2024JP¥142.6tJP¥70.7tJP¥4.8t17.6x29.5x2x
Mon, 10 Jun 2024JP¥133.0tJP¥70.5tJP¥4.8t16.4x27.7x1.9x
Wed, 08 May 2024JP¥134.2tJP¥70.2tJP¥4.7t17.2x28.5x1.9x
Fri, 05 Apr 2024JP¥136.3tJP¥69.9tJP¥4.5t17.4x30x1.9x
Sun, 03 Mar 2024JP¥137.4tJP¥70.3tJP¥4.6t17.8x30.2x2x
Tue, 30 Jan 2024JP¥126.0tJP¥71.4tJP¥4.8t17.8x26.4x1.8x
Thu, 28 Dec 2023JP¥119.9tJP¥71.3tJP¥4.8t16.9x25.2x1.7x
Sat, 25 Nov 2023JP¥116.9tJP¥71.1tJP¥4.8t16.9x24.6x1.6x
Mon, 23 Oct 2023JP¥105.3tJP¥70.5tJP¥5.0t16.1x21.1x1.5x
Wed, 20 Sep 2023JP¥109.9tJP¥70.4tJP¥5.0t17x22x1.6x
Fri, 18 Aug 2023JP¥107.5tJP¥70.2tJP¥5.0t16.4x21.6x1.5x
Sun, 16 Jul 2023JP¥112.3tJP¥69.6tJP¥5.1t16.3x21.8x1.6x
Tue, 13 Jun 2023JP¥112.3tJP¥69.6tJP¥5.1t16.1x21.8x1.6x
Thu, 11 May 2023JP¥100.0tJP¥68.6tJP¥5.3t15.7x19x1.5x
Sat, 08 Apr 2023JP¥94.5tJP¥67.7tJP¥5.3t15x17.9x1.4x
Mon, 06 Mar 2023JP¥96.7tJP¥68.5tJP¥5.4t15.4x18x1.4x
Wed, 01 Feb 2023JP¥95.1tJP¥66.9tJP¥5.5t15.1x17.4x1.4x
Price to Earnings Ratio

17.4x


Total Market Cap: JP¥95.1tTotal Earnings: JP¥5.5tTotal Revenue: JP¥66.9tTotal 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 2.3% 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

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).
6963
JP¥2,731.00
ROHM
7D
9.1%
1Y
78.5%

ROHM (TSE:6963) Has Announced A Dividend Of ¥25.00

Jan 22
ROHM (TSE:6963) Has Announced A Dividend Of ¥25.00
7735
JP¥19,525.00
SCREEN Holdings
7D
9.3%
1Y
73.2%
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).
8035
JP¥41,720.00
Tokyo Electron
7D
-1.0%
1Y
53.7%
4901
JP¥3,240.00
FUJIFILM Holdings
7D
-5.8%
1Y
-2.2%
6702
JP¥4,380.00
Fujitsu
7D
-4.2%
1Y
57.6%
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%