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U.S. Tech Sector Analysis

UpdatedMar 26, 2026
DataAggregated Company Financials
Companies978
  • 7D-0.5%
  • 3M-8.5%
  • 1Y27.1%
  • YTD-7.1%

In the last week, the Tech industry is flat overall, with Microsoft standing out by going down 4.6%. The past year has been better, since the industry has gained 27% in that time. Earnings are forecast to grow by 19% annually.

Sector Valuation and Performance

Has the U.S. Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 26 Mar 2026US$20.9tUS$2.7tUS$555.3b31.2x37.6x7.7x
Sat, 21 Feb 2026US$21.6tUS$2.6tUS$520.2b29.5x41.5x8.2x
Mon, 19 Jan 2026US$22.4tUS$2.6tUS$500.6b31.7x44.7x8.8x
Wed, 17 Dec 2025US$22.2tUS$2.6tUS$503.6b30.5x44x8.6x
Fri, 14 Nov 2025US$23.2tUS$2.5tUS$478.4b29.7x48.5x9.1x
Sun, 12 Oct 2025US$22.2tUS$2.5tUS$439.1b30.5x50.5x8.9x
Tue, 09 Sep 2025US$20.9tUS$2.5tUS$435.1b29.1x47.9x8.5x
Thu, 07 Aug 2025US$20.7tUS$2.4tUS$413.9b27.4x50x8.6x
Sat, 05 Jul 2025US$20.1tUS$2.4tUS$393.2b29.4x51.1x8.4x
Mon, 02 Jun 2025US$17.9tUS$2.4tUS$390.3b27x46x7.6x
Wed, 30 Apr 2025US$16.1tUS$2.3tUS$385.4b25.4x41.7x6.9x
Fri, 28 Mar 2025US$16.5tUS$2.3tUS$385.4b27.2x42.8x7.1x
Sun, 23 Feb 2025US$18.4tUS$2.3tUS$369.5b30.2x49.8x8x
Tue, 21 Jan 2025US$18.4tUS$2.3tUS$367.0b33.9x50x8.1x
Thu, 19 Dec 2024US$18.9tUS$2.3tUS$363.6b32.2x51.9x8.4x
Sat, 16 Nov 2024US$18.2tUS$2.2tUS$351.3b32.1x51.7x8.1x
Mon, 14 Oct 2024US$17.6tUS$2.2tUS$378.2b30.4x46.6x8.1x
Wed, 11 Sep 2024US$15.8tUS$2.2tUS$375.1b27.5x42.2x7.3x
Fri, 09 Aug 2024US$15.1tUS$2.1tUS$370.2b28.3x40.7x7x
Sun, 07 Jul 2024US$17.5tUS$2.1tUS$362.9b30.4x48.2x8.3x
Tue, 04 Jun 2024US$15.1tUS$2.1tUS$351.1b29.5x43x7.3x
Thu, 02 May 2024US$13.8tUS$2.0tUS$335.4b27.9x41.3x6.8x
Sat, 30 Mar 2024US$14.8tUS$2.0tUS$328.0b28.3x45x7.2x
Mon, 26 Feb 2024US$14.4tUS$2.0tUS$322.4b27.5x44.8x7.1x
Wed, 24 Jan 2024US$14.0tUS$2.0tUS$292.1b26.6x48.1x6.8x
Fri, 22 Dec 2023US$13.2tUS$2.1tUS$292.5b26.4x45.2x6.4x
Sun, 19 Nov 2023US$12.6tUS$2.0tUS$281.5b24.5x44.7x6.2x
Tue, 17 Oct 2023US$11.9tUS$2.0tUS$270.2b24.8x43.9x5.8x
Thu, 14 Sep 2023US$11.9tUS$2.0tUS$273.3b23.8x43.6x5.8x
Sat, 12 Aug 2023US$11.6tUS$2.0tUS$263.3b25.2x43.9x5.7x
Mon, 10 Jul 2023US$11.9tUS$2.0tUS$258.1b24.5x46x5.9x
Wed, 07 Jun 2023US$11.5tUS$2.0tUS$264.1b24.4x43.5x5.7x
Fri, 05 May 2023US$10.1tUS$2.0tUS$261.3b21.3x38.7x5x
Sun, 02 Apr 2023US$10.4tUS$2.0tUS$275.0b23.4x37.9x5.1x
Price to Earnings Ratio

37.9x


Total Market Cap: US$10.4tTotal Earnings: US$275.0bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.4x202420252026
Current Industry PE
  • Investors are pessimistic on the American Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 37.6x which is lower than its 3-year average PE of 45.4x.
  • The industry is trading close to its 3-year average PS ratio of 7.3x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 26% per year over the last three years.
  • Revenues for these companies have grown 9.9% 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 U.S. Tech sector?

US Market-0.15%
Tech-0.52%
Electronic Equipment and Components5.73%
Communications4.34%
Tech Hardware1.08%
Semiconductors0.69%
IT-2.69%
Software-4.66%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 31.8x.
    • Analysts are expecting annual earnings growth of 22.4%, which is higher than its past year's earnings growth of 15.7% per year.
  • Investors are most pessimistic about the Software industry, which is trading below its 3-year average of 53.3x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is better than its past earnings growth rate of 3.1% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.7% 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
AAPL AppleUS$252.621.5%
+US$53.7b		12.9%PE31.5x
AMD Advanced Micro DevicesUS$220.2710.4%
+US$33.9b		99.9%PE84.1x
ARM Arm HoldingsUS$157.0722.4%
+US$30.5b		36.7%PE208.3x
DELL Dell TechnologiesUS$184.0123.3%
+US$22.5b		91.2%PE20x
CSCO Cisco SystemsUS$81.835.5%
+US$16.7b		32.4%PE29.2x

Latest News

MU
US$382.09
Micron Technology
7D
-17.2%
1Y
314.7%

We Think That There Are Issues Underlying Micron Technology's (NASDAQ:MU) Earnings

Mar 26
We Think That There Are Issues Underlying Micron Technology's (NASDAQ:MU) Earnings
CSCO
US$81.83
Cisco Systems
7D
5.5%
1Y
32.4%
CRWD
US$385.86
CrowdStrike Holdings
7D
-11.5%
1Y
3.9%
GLW
US$146.35
Corning
7D
12.7%
1Y
210.7%
ARM
US$157.07
Arm Holdings
7D
22.4%
1Y
36.7%
DELL
US$184.01
Dell Technologies
7D
23.3%
1Y
91.2%
AVGO
US$318.81
Broadcom
7D
0.9%
1Y
77.8%
PANW
US$153.22
Palo Alto Networks
7D
-9.7%
1Y
-12.2%

PANW: AI Security Platform And Geopolitical Role Will Drive Future Repricing

Analysts made a slight downward adjustment to the price target for Palo Alto Networks, trimming fair value estimates by about $0.41 to $207.75 as they balanced a wave of reduced targets from multiple firms with ongoing views that the company remains exposed to key cybersecurity and AI related demand drivers. Analyst Commentary Recent research on Palo Alto Networks reflects a split view, with many price targets moving lower while ratings often remain positive.
MSFT
US$371.04
Microsoft
7D
-4.6%
1Y
-5.0%
ORCL
US$146.02
Oracle
7D
-4.5%
1Y
-1.2%

ORCL: AI Data Center Spending And Margins Will Shape Cash Generation

Oracle's analyst fair value estimate has moved from about $193.08 to $155.00 as analysts factor in lower profit margin assumptions along with stronger modeled revenue growth and generally supportive post earnings research. Analyst Commentary Street research around Oracle following the fiscal Q3 report reflects a mix of renewed confidence in the business trajectory and recalibration of expectations.
CRM
US$181.96
Salesforce
7D
-6.4%
1Y
-35.2%

CRM: AI Execution Debt-Funded Buybacks And AI Fears Will Shape Risk Balance

Analysts have kept the fair value estimate for Salesforce steady at $190, while slightly adjusting assumptions such as discount rate, revenue growth, profit margin, and future P/E to reflect mixed Q4 trends, widespread price target cuts across the Street, and increasing focus on the potential of Agentforce and AI driven offerings, alongside softer near term organic growth expectations. Analyst Commentary Street research around the latest Q4 report has turned more cautious, even as many firms still see potential in Salesforce's AI and Agentforce roadmap.
AAPL
US$252.62
Apple
7D
1.5%
1Y
12.9%
AMD
US$220.27
Advanced Micro Devices
7D
10.4%
1Y
99.9%

AMD: Expanded Meta And OpenAI AI Agreements Will Support Future Upside

Analysts have lifted the fair value estimate for AMD by about $6 to $289.61. This reflects updated assumptions around higher profit margins, slightly stronger revenue growth, a lower future P/E multiple, and recent Street research highlighting expanded GPU partnerships with Meta, OpenAI, and large customers across data center and AI workloads.
AMAT
US$369.34
Applied Materials
7D
5.7%
1Y
145.1%
NOW
US$103.06
ServiceNow
7D
-9.4%
1Y
-38.5%

NOW: AI Platform Adoption And Buybacks Will Drive Long Term Upside

Analysts have trimmed their fair value estimate for ServiceNow to $130.18 from $133.26, citing slightly higher discount rate assumptions, along with modest adjustments to revenue growth, profit margin, and future P/E expectations. What's in the News ServiceNow issued guidance for GAAP subscription revenue of US$3,650 million to US$3,655 million for Q1 2026 and US$15,530 million to US$15,570 million for full year 2026, giving investors a concrete view of management’s current revenue expectations (Corporate guidance).
SNDK
US$677.86
Sandisk
7D
-10.1%
1Y
1,188.2%