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U.S. Tech Sector Analysis

UpdatedOct 10, 2024
DataAggregated Company Financials
Companies929
  • 7D4.1%
  • 3M0.5%
  • 1Y45.9%
  • YTD33.1%

In the last week, the Tech industry is up 4.1%, with NVIDIA up 12%. This means that the industry has gained 46% over the past year. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 10 Oct 2024US$17.4tUS$2.2tUS$378.2b30.3x46x8x
Sat, 07 Sep 2024US$15.6tUS$2.2tUS$374.5b27.2x41.7x7.2x
Mon, 05 Aug 2024US$15.6tUS$2.1tUS$363.3b29.6x42.9x7.3x
Wed, 03 Jul 2024US$17.1tUS$2.1tUS$362.9b30.7x47x8.1x
Fri, 31 May 2024US$15.1tUS$2.1tUS$351.1b29.8x43.1x7.3x
Sun, 28 Apr 2024US$14.2tUS$2.1tUS$335.6b28.4x42.3x6.9x
Tue, 26 Mar 2024US$14.9tUS$2.0tUS$328.6b27.7x45.5x7.3x
Thu, 22 Feb 2024US$14.0tUS$2.0tUS$311.6b27.1x44.9x6.9x
Sat, 20 Jan 2024US$13.9tUS$2.0tUS$292.0b26.4x47.4x6.8x
Mon, 18 Dec 2023US$13.4tUS$2.1tUS$293.6b26.5x45.5x6.5x
Wed, 15 Nov 2023US$12.3tUS$2.0tUS$280.4b24.2x43.9x6x
Fri, 13 Oct 2023US$12.0tUS$2.0tUS$270.1b24.7x44.2x5.9x
Sun, 10 Sep 2023US$12.0tUS$2.0tUS$272.9b24.3x43.8x5.9x
Tue, 08 Aug 2023US$11.9tUS$2.0tUS$262.2b25.3x45.5x5.9x
Thu, 06 Jul 2023US$12.0tUS$2.0tUS$258.1b24.7x46.3x5.9x
Sat, 03 Jun 2023US$11.5tUS$2.0tUS$264.1b24.6x43.7x5.7x
Mon, 01 May 2023US$10.3tUS$2.0tUS$265.6b20.9x38.9x5.1x
Wed, 29 Mar 2023US$9.9tUS$2.0tUS$278.2b22.3x35.7x4.9x
Fri, 24 Feb 2023US$10.9tUS$2.3tUS$295.6b23.4x36.7x4.8x
Sun, 22 Jan 2023US$10.3tUS$2.2tUS$327.5b23.5x31.5x4.6x
Tue, 20 Dec 2022US$9.8tUS$2.3tUS$330.1b21.6x29.7x4.4x
Thu, 17 Nov 2022US$10.3tUS$2.2tUS$333.3b22.5x30.9x4.6x
Sat, 15 Oct 2022US$9.2tUS$2.2tUS$345.2b18.6x26.8x4.2x
Mon, 12 Sep 2022US$10.9tUS$2.2tUS$346.8b21.3x31.5x5x
Wed, 10 Aug 2022US$11.5tUS$2.2tUS$351.1b22.5x32.8x5.3x
Fri, 08 Jul 2022US$10.7tUS$2.2tUS$359.4b23.2x29.6x5x
Sun, 05 Jun 2022US$11.2tUS$2.1tUS$358.6b25.6x31.2x5.2x
Tue, 03 May 2022US$11.6tUS$2.1tUS$356.5b23.9x32.7x5.6x
Thu, 31 Mar 2022US$13.3tUS$2.1tUS$346.2b26.2x38.4x6.5x
Sat, 26 Feb 2022US$12.7tUS$2.1tUS$356.1b25.5x35.7x5.9x
Mon, 24 Jan 2022US$12.9tUS$2.2tUS$346.7b27.1x37.1x6x
Wed, 22 Dec 2021US$14.5tUS$2.1tUS$346.7b28x41.8x6.8x
Fri, 19 Nov 2021US$15.0tUS$2.1tUS$339.4b29.5x44.1x7x
Sun, 17 Oct 2021US$13.9tUS$2.0tUS$314.8b32.4x44.1x6.8x
Price to Earnings Ratio

44.1x


Total Market Cap: US$13.9tTotal Earnings: US$314.8bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 39.4x202220232024
Current Industry PE
  • Investors are optimistic on the American Information Technology industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 46.0x which is higher than its 3-year average PE of 39.4x.
  • The 3-year average PS ratio of 6.0x is lower than the industry's current PS ratio of 8.0x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 6.3% per year over the last three years.
  • Revenues for these companies have grown 2.2% 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 Market1.21%
Tech4.13%
Semiconductors8.20%
IT4.27%
Communications2.74%
Electronic Equipment and Components2.71%
Software2.10%
Tech Hardware1.31%
Industry PE
  • Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 37.4x.
    • Analysts are expecting annual earnings growth of 26.4%, which is higher than its past year's earnings decline of 7.2% per year.
  • Investors are most pessimistic about the Electronic Equipment and Components industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 25.5x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 26% over the next 5 years.
  • This is better than its past earnings decline of 7.2% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.8% 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
NVDA NVIDIAUS$132.6511.6%
+US$338.5b
183.4%PE61.4x
AVGO BroadcomUS$185.959.0%
+US$71.4b
112.6%PE158.3x
AAPL AppleUS$229.541.2%
+US$42.0b
27.7%PE34.2x
ORCL OracleUS$178.296.3%
+US$29.3b
62.6%PE45x
AMD Advanced Micro DevicesUS$171.027.0%
+US$18.2b
57.9%PE204.4x
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