Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Japanese (NIKKEI) Tech Sector Analysis

UpdatedJan 15, 2026
DataAggregated Company Financials
Companies676
  • 7D4.8%
  • 3M17.6%
  • 1Y43.3%
  • YTD6.2%

Tokyo Electron is up 11%, leading the way for the Tech industry, which has gained 4.8%. Meanwhile, TDK actually underperformed within the industry, shrinking 6.0% in the last week. This takes the industry's 12 month performance to a gain of 43%. 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
Thu, 15 Jan 2026JP¥167.7tJP¥71.7tJP¥5.3t17.7x31.5x2.3x
Sat, 13 Dec 2025JP¥153.5tJP¥71.6tJP¥5.3t17x28.9x2.1x
Mon, 10 Nov 2025JP¥151.2tJP¥71.7tJP¥5.4t16.9x27.9x2.1x
Wed, 08 Oct 2025JP¥144.1tJP¥70.6tJP¥5.0t17.2x29x2x
Fri, 05 Sep 2025JP¥129.4tJP¥75.5tJP¥5.1t16.8x25.3x1.7x
Sun, 03 Aug 2025JP¥124.6tJP¥70.9tJP¥5.0t16.9x24.9x1.8x
Tue, 01 Jul 2025JP¥125.8tJP¥70.6tJP¥5.2t16.3x24.1x1.8x
Thu, 29 May 2025JP¥123.2tJP¥75.5tJP¥5.4t15.7x22.9x1.6x
Sat, 26 Apr 2025JP¥114.3tJP¥74.1tJP¥5.4t15.1x21.2x1.5x
Mon, 24 Mar 2025JP¥122.4tJP¥74.5tJP¥5.6t15.9x22x1.6x
Wed, 19 Feb 2025JP¥130.7tJP¥75.1tJP¥5.6t15.8x23.4x1.7x
Fri, 17 Jan 2025JP¥124.7tJP¥74.1tJP¥5.3t16.1x23.7x1.7x
Sun, 15 Dec 2024JP¥125.6tJP¥72.5tJP¥5.1t16.7x24.5x1.7x
Tue, 12 Nov 2024JP¥128.5tJP¥72.3tJP¥5.0t16.6x25.6x1.8x
Thu, 10 Oct 2024JP¥129.9tJP¥71.7tJP¥5.1t16.5x25.7x1.8x
Sat, 07 Sep 2024JP¥121.4tJP¥71.8tJP¥5.1t16.3x24x1.7x
Mon, 05 Aug 2024JP¥119.8tJP¥71.2tJP¥5.0t15.2x24.1x1.7x
Wed, 03 Jul 2024JP¥139.0tJP¥70.7tJP¥4.8t17.3x28.8x2x
Fri, 31 May 2024JP¥132.1tJP¥70.6tJP¥4.8t16.5x27.5x1.9x
Sun, 28 Apr 2024JP¥129.5tJP¥70.1tJP¥4.6t17x27.9x1.8x
Tue, 26 Mar 2024JP¥137.5tJP¥70.3tJP¥4.6t18x30.2x2x
Thu, 22 Feb 2024JP¥130.7tJP¥70.3tJP¥4.6t17.6x28.7x1.9x
Sat, 20 Jan 2024JP¥125.9tJP¥71.3tJP¥4.8t17.4x26.5x1.8x
Mon, 18 Dec 2023JP¥116.8tJP¥71.3tJP¥4.8t16.7x24.6x1.6x
Wed, 15 Nov 2023JP¥112.3tJP¥71.0tJP¥4.7t16.4x23.7x1.6x
Fri, 13 Oct 2023JP¥110.4tJP¥70.5tJP¥5.0t16.6x22.1x1.6x
Sun, 10 Sep 2023JP¥110.6tJP¥70.4tJP¥5.0t17x22.1x1.6x
Tue, 08 Aug 2023JP¥109.9tJP¥69.6tJP¥5.0t16.3x22x1.6x
Thu, 06 Jul 2023JP¥115.0tJP¥69.6tJP¥5.1t16.6x22.4x1.7x
Sat, 03 Jun 2023JP¥110.6tJP¥69.5tJP¥5.1t16x21.5x1.6x
Mon, 01 May 2023JP¥97.4tJP¥68.3tJP¥5.2t15.4x18.6x1.4x
Wed, 29 Mar 2023JP¥96.1tJP¥67.7tJP¥5.3t15.2x18.2x1.4x
Fri, 24 Feb 2023JP¥93.3tJP¥68.5tJP¥5.4t15.1x17.4x1.4x
Sun, 22 Jan 2023JP¥92.4tJP¥66.3tJP¥5.4t14.8x17.1x1.4x
Price to Earnings Ratio

17.1x


Total Market Cap: JP¥92.4tTotal Earnings: JP¥5.4tTotal Revenue: JP¥66.3tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Tech Sector Price to Earnings3Y Average 24.3x202420252026
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 31.5x which is higher than its 3-year average PE of 24.3x.
  • The 3-year average PS ratio of 1.7x is lower than the industry's current PS ratio of 2.3x.
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 2.6% 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 Market3.51%
Tech4.77%
Semiconductors8.48%
Tech Hardware2.98%
Communications2.81%
IT2.75%
Electronic Equipment and Components2.50%
Software0.31%
Industry PE
  • Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 24.8x.
    • Analysts are expecting annual earnings growth of 19.0%, which is higher than its past year's earnings growth of 8.3% 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 19% over the next 5 years.
  • This is better than its past earnings growth rate of 8.3% 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
8035 Tokyo ElectronJP¥42.77k16.7%
+JP¥2.8t		60.5%PE36.2x
6857 AdvantestJP¥22.52k12.0%
+JP¥1.8t		144.9%PE62.6x
6861 KeyenceJP¥60.56k8.3%
+JP¥1.1t		-6.7%PE35.9x
6920 LasertecJP¥35.90k16.9%
+JP¥466.1b		147.0%PE33.9x
6702 FujitsuJP¥4.65k5.9%
+JP¥456.6b		74.1%PE29.4x

Latest News

6920
JP¥35,900.00
Lasertec
7D
16.9%
1Y
147.0%
8035
JP¥42,770.00
Tokyo Electron
7D
16.7%
1Y
60.5%
4716
JP¥12,350.00
Oracle Corporation Japan
7D
-3.7%
1Y
-13.1%
6146
JP¥59,490.00
Disco
7D
7.0%
1Y
34.4%

Disco Corporation (TSE:6146) Looks Just Right With A 26% Price Jump

Jan 14
Disco Corporation (TSE:6146) Looks Just Right With A 26% Price Jump
6702
JP¥4,648.00
Fujitsu
7D
5.9%
1Y
74.1%
6787
JP¥9,960.00
Meiko Electronics
7D
-4.2%
1Y
15.8%

Meiko Electronics (TSE:6787) Seems To Use Debt Quite Sensibly

Jan 13
Meiko Electronics (TSE:6787) Seems To Use Debt Quite Sensibly
3626
JP¥5,021.00
TIS
7D
-3.6%
1Y
46.8%

There's Reason For Concern Over TIS Inc.'s (TSE:3626) Price

Jan 09
There's Reason For Concern Over TIS Inc.'s (TSE:3626) Price
4768
JP¥3,184.00
Otsuka
7D
-1.6%
1Y
-5.8%

Capital Investment Trends At Otsuka (TSE:4768) Look Strong

Jan 09
Capital Investment Trends At Otsuka (TSE:4768) Look Strong
6701
JP¥5,947.00
NEC
7D
5.4%
1Y
132.5%

6701: Future CSG Acquisition Will Raise Risk For Current Shareholders

Analysts have lifted their price target for NEC to about ¥5,000, reflecting updated assumptions for revenue, profit margins and a slightly higher future P/E multiple. What's in the News NEC set consolidated earnings guidance for the year ending March 31, 2026, with expected revenue of ¥3,420b.
6762
JP¥2,039.00
TDK
7D
-3.7%
1Y
8.8%

6762: Raised Guidance And Battery Collaboration Will Support Future Upside Potential

Analysts have lifted their fair value estimate for TDK from ¥2,480 to ¥3,200, citing updated assumptions for revenue growth, profit margins and future P/E, even as the stock was recently removed from a conviction list. Analyst Commentary Even with the recent removal of TDK from a major APAC Conviction List, recent fair value work suggests that some research desks still see room for upside if the company delivers on updated revenue and margin assumptions.
6857
JP¥22,515.00
Advantest
7D
12.0%
1Y
144.9%

6857: Elevated AI Tester Expectations Will Likely Prove Unsustainable

Analysts have raised their price target for Advantest significantly, from approximately ¥6,973 to about ¥10,429. They cited upgraded expectations for revenue growth, structurally higher profit margins, and a slightly lower future price to earnings multiple that still supports a richer fair value.
6861
JP¥60,560.00
Keyence
7D
8.3%
1Y
-6.7%

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
429A
JP¥3,005.00
Tekscend Photomask
7D
-3.1%
1Y
n/a
4812
JP¥2,551.00
Dentsu Soken
7D
-7.3%
1Y
35.5%
6981
JP¥3,397.00
Murata Manufacturing
7D
6.6%
1Y
44.1%
3697
JP¥871.20
SHIFT
7D
-8.4%
1Y
-38.3%