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U.S. Tech Sector Analysis

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies986
  • 7D-1.6%
  • 3M0.3%
  • 1Y14.3%
  • YTD-3.9%

Over the last 7 days, the Tech industry has dropped 1.6%, driven by a pullback from Apple of 4.0%. On the other hand Applied Materials is actually up 8.7%. This takes the industry's 12 month performance to a gain of 14%. As for the next few years, earnings are expected to grow by 19% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 19 Feb 2026US$21.4tUS$2.6tUS$520.4b29.5x41.2x8.2x
Sat, 17 Jan 2026US$22.3tUS$2.6tUS$500.6b31.7x44.6x8.7x
Mon, 15 Dec 2025US$22.4tUS$2.6tUS$503.6b31.1x44.6x8.7x
Wed, 12 Nov 2025US$23.4tUS$2.5tUS$477.9b29.5x48.9x9.2x
Fri, 10 Oct 2025US$23.2tUS$2.5tUS$439.1b32.4x52.9x9.3x
Sun, 07 Sep 2025US$20.8tUS$2.5tUS$435.1b29.2x47.9x8.5x
Tue, 05 Aug 2025US$20.3tUS$2.4tUS$413.5b27.9x49.1x8.4x
Thu, 03 Jul 2025US$19.5tUS$2.4tUS$393.1b28.8x49.7x8.2x
Sat, 31 May 2025US$18.0tUS$2.4tUS$390.3b27x46.1x7.6x
Mon, 28 Apr 2025US$16.1tUS$2.3tUS$386.0b25.9x41.7x6.9x
Wed, 26 Mar 2025US$16.9tUS$2.3tUS$386.7b26.8x43.7x7.3x
Fri, 21 Feb 2025US$19.0tUS$2.3tUS$369.5b31.2x51.3x8.3x
Sun, 19 Jan 2025US$18.4tUS$2.3tUS$367.0b33.9x50x8.1x
Tue, 17 Dec 2024US$18.8tUS$2.3tUS$363.6b32.1x51.6x8.3x
Thu, 14 Nov 2024US$18.2tUS$2.2tUS$352.6b32.9x51.7x8.2x
Sat, 12 Oct 2024US$17.6tUS$2.2tUS$378.2b30.4x46.5x8.1x
Mon, 09 Sep 2024US$15.6tUS$2.2tUS$374.5b27.2x41.7x7.2x
Wed, 07 Aug 2024US$15.1tUS$2.1tUS$362.4b28.7x41.6x7.1x
Fri, 05 Jul 2024US$17.4tUS$2.1tUS$362.9b30.8x47.9x8.2x
Sun, 02 Jun 2024US$15.1tUS$2.1tUS$351.1b29.5x43x7.3x
Tue, 30 Apr 2024US$14.2tUS$2.1tUS$335.6b28.5x42.3x6.9x
Thu, 28 Mar 2024US$14.8tUS$2.0tUS$328.2b28.1x45.1x7.2x
Sat, 24 Feb 2024US$14.4tUS$2.0tUS$322.2b27.5x44.8x7.1x
Mon, 22 Jan 2024US$14.0tUS$2.0tUS$292.0b26.5x47.8x6.8x
Wed, 20 Dec 2023US$13.4tUS$2.1tUS$293.6b25.9x45.8x6.5x
Fri, 17 Nov 2023US$12.6tUS$2.0tUS$281.3b24.1x44.9x6.2x
Sun, 15 Oct 2023US$11.7tUS$2.0tUS$270.2b24.8x43.5x5.8x
Tue, 12 Sep 2023US$12.0tUS$2.0tUS$272.9b23.6x44.1x5.9x
Thu, 10 Aug 2023US$11.6tUS$2.0tUS$262.9b25.6x44.3x5.7x
Sat, 08 Jul 2023US$11.9tUS$2.0tUS$258.1b24.5x46x5.9x
Mon, 05 Jun 2023US$11.5tUS$2.0tUS$264.1b24.7x43.7x5.7x
Wed, 03 May 2023US$10.2tUS$2.0tUS$264.2b20.7x38.6x5x
Fri, 31 Mar 2023US$10.3tUS$2.0tUS$274.8b22.9x37.3x5x
Sun, 26 Feb 2023US$10.7tUS$2.3tUS$295.9b23.2x36.1x4.7x
Price to Earnings Ratio

36.1x


Total Market Cap: US$10.7tTotal Earnings: US$295.9bTotal Revenue: US$2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.3x202420252026
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 41.2x which is lower than its 3-year average PE of 45.3x.
  • The 3-year average PS ratio of 7.2x is lower than the industry's current PS ratio of 8.2x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 21% per year over the last three years.
  • Revenues for these companies have grown 5.3% 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-0.74%
Tech-1.61%
Electronic Equipment and Components1.22%
Semiconductors-1.09%
Software-1.16%
IT-1.56%
Communications-2.85%
Tech Hardware-3.55%
Industry PE
  • Investors are most optimistic about the Semiconductors industry, which is trading close to its 3-year average PE ratio of 53.1x.
    • Analysts are expecting annual earnings growth of 24.2%, which is higher than its past year's earnings growth of 5.6% per year.
  • Investors are most pessimistic about the Software industry, which is trading below its 3-year average of 54.2x.
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 5.6% 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
AMAT Applied MaterialsUS$369.308.7%
+US$23.4b		112.2%PE37.4x
MU Micron TechnologyUS$420.952.6%
+US$11.9b		303.4%PE39.8x
WDC Western DigitalUS$296.568.3%
+US$7.7b		314.8%PE25.5x
NOW ServiceNowUS$107.817.2%
+US$7.6b		-45.4%PE64.5x
LRCX Lam ResearchUS$240.092.1%
+US$6.2b		173.9%PE48.3x

Latest News

ADI
US$346.37
Analog Devices
7D
2.8%
1Y
43.3%
AMAT
US$369.30
Applied Materials
7D
8.7%
1Y
112.2%
LRCX
US$240.09
Lam Research
7D
2.1%
1Y
173.9%

LRCX: AI Memory And WFE Upcycle Is Expected To Drive Returns

Lam Research's fair value estimate has been raised from about $204 to roughly $274 as analysts update their price targets based on higher assumed revenue growth, stronger profit margins, and slightly adjusted discount and future P/E assumptions across recent research reports. Analyst Commentary Recent research on Lam Research has been active, with a long list of firms revisiting their models and lifting price targets.
AVGO
US$333.51
Broadcom
7D
-2.7%
1Y
45.8%

AVGO: AI Custom Silicon And TPU Demand Will Support Future Upside

Our Broadcom analyst price target edges slightly lower to $456.59 from $456.56 as analysts factor in mixed recent calls, with some trimming targets on margin and competition concerns while others highlight support from AI related demand and potential TPU traction. Analyst Commentary Recent research on Broadcom reflects a mix of optimism around AI exposure and custom silicon, alongside caution on margins and valuation as expectations rise into 2026.
APP
US$404.39
AppLovin
7D
-11.5%
1Y
-18.2%

APP: Higher 2026 Revenue Outlook And Rich Margins Will Support Upside Potential

Analysts have adjusted their price target on AppLovin to $476.89 from $530.78, citing updated assumptions around revenue growth, profit margins, and future P/E multiples. What's in the News AppLovin issued new earnings guidance for the first quarter of 2026, setting expected total revenue in a range of US$1.745b to US$1.775b (Key Developments).
AAPL
US$264.35
Apple
7D
-4.0%
1Y
8.0%

AAPL: Gemini Partnership And AI Roadmap Will Drive Future Upside

Analysts have raised their Apple fair value estimate to $350 from about $283.66, citing Street research that characterizes the recent selloff as unwarranted and highlights a clearer AI roadmap supported by the Google Gemini partnership as well as ongoing checks on demand and margins. Analyst Commentary Recent research points to a generally constructive backdrop around Apple, with many bullish analysts emphasizing AI execution, the Google Gemini partnership, and supportive checks on demand and margins.
NOW
US$107.81
ServiceNow
7D
7.2%
1Y
-45.4%

NOW: AI Partnerships And Share Repurchases Will Drive Future Upside

Analysts have trimmed their price target on ServiceNow to about $189 from roughly $226, citing updated assumptions that include slightly lower discount rates, a future P/E of about 62.5, and revised expectations for revenue growth and profit margins that they believe better reflect the company’s current risk and return profile. What's in the News Kearney and ServiceNow formed a partnership around the ServiceNow AI Platform to support enterprise-wide business process reengineering, targeting gains in operational efficiency, workflow speed, and AI driven process orchestration across functions such as sales, operations, and IT (Key Developments).
INTC
US$45.46
Intel
7D
-5.9%
1Y
76.7%

INTC: AI And Foundry Partnerships Will Test Rich Future P E Expectations

Intel's updated fair value estimate edged up to $47.12 from $46.97 as analysts balanced a series of upward and downward price target revisions with slightly adjusted assumptions around discount rate, revenue growth, profit margins and future P/E. This reflects a more finely tuned view of the company’s execution and foundry opportunity.
MSI
US$451.60
Motorola Solutions
7D
7.2%
1Y
2.9%

Analysts Have Made A Financial Statement On Motorola Solutions, Inc.'s (NYSE:MSI) Annual Report

Feb 16
Analysts Have Made A Financial Statement On Motorola Solutions, Inc.'s (NYSE:MSI) Annual Report
WDC
US$296.56
Western Digital
7D
8.3%
1Y
314.8%

WDC: Future AI Storage Demand And HDD Pricing May Support Upside

Analysts have lifted their implied fair value estimate for Western Digital to $440.00 per share. They cite updated assumptions that include higher revenue growth, stronger profit margins and a slightly lower discount rate, along with a P/E outlook broadly consistent with prior expectations and a series of recent price target increases across the Street.
MU
US$420.95
Micron Technology
7D
2.6%
1Y
303.4%

MU: AI Memory Hype Will Eventually Collide With Rising DRAM Capacity

Micron Technology's fair value estimate has been revised higher from $176.14 to $214.08 as analysts factor in stronger assumptions for revenue growth, profit margins and future P/E. This revision is supported by a broad wave of higher Street price targets tied to tight memory supply and rising AI driven demand.
CSCO
US$78.18
Cisco Systems
7D
-8.6%
1Y
20.6%
AMD
US$200.12
Advanced Micro Devices
7D
-6.3%
1Y
74.5%
MSFT
US$399.60
Microsoft
7D
-1.2%
1Y
-3.7%
NVDA
US$187.98
NVIDIA
7D
-1.1%
1Y
35.0%

NVDA: AI Infrastructure Demand And Partnerships Will Sustain Market Leadership

Analysts nudged their fair value estimate for Nvidia higher from US$326.00 to about US$334.78, as they factor in expectations for stronger profit margins, a higher future P/E and recent research that highlights Nvidia's AI leadership, data center demand and supportive partner deals such as the CoreWeave agreement. Analyst Commentary Recent Street research around Nvidia has been broadly constructive, with many bullish analysts adjusting their models after company updates, product news and partner commentary.
ARM
US$127.24
Arm Holdings
7D
4.1%
1Y
-15.7%

ARM: AI Licensing And Physical AI Will Drive Future Upside Potential

The analyst price target for Arm Holdings has been revised lower by $14.99, as analysts factor in slightly softer revenue growth assumptions, a lower future P/E multiple of 82.61, and updated views from recent research that temper earlier optimism around the shares. Analyst Commentary Recent research on Arm Holdings points to a mix of optimism and caution, with several firms adjusting price targets and ratings as they reassess growth assumptions, valuation, and execution risk.