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U.S. Tech Sector Analysis

UpdatedJan 29, 2026
DataAggregated Company Financials
Companies988
  • 7D3.6%
  • 3M-4.9%
  • 1Y24.2%
  • YTD1.1%

The Tech industry is up 3.6% in the last week, with Microsoft up 8.4%. In the same time, Intel was down 10%. This takes the industry's 12 month performance to a gain of 24%. Earnings are forecast to grow by 20% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 29 Jan 2026US$22.7tUS$2.6tUS$501.0b31.2x45.4x8.9x
Sat, 27 Dec 2025US$22.8tUS$2.6tUS$506.9b30.7x45.1x8.8x
Mon, 24 Nov 2025US$21.6tUS$2.6tUS$492.6b28.5x43.8x8.4x
Wed, 22 Oct 2025US$22.9tUS$2.5tUS$439.2b31.6x52x9.1x
Fri, 19 Sep 2025US$21.8tUS$2.5tUS$435.4b30.9x50x8.8x
Sun, 17 Aug 2025US$21.1tUS$2.4tUS$418.3b27.8x50.5x8.7x
Tue, 15 Jul 2025US$20.0tUS$2.4tUS$393.2b28.7x50.9x8.4x
Thu, 12 Jun 2025US$18.7tUS$2.4tUS$391.8b28x47.6x7.8x
Sat, 10 May 2025US$16.8tUS$2.3tUS$383.7b25.7x43.7x7.1x
Mon, 07 Apr 2025US$14.1tUS$2.3tUS$386.8b24.1x36.4x6x
Wed, 05 Mar 2025US$17.0tUS$2.3tUS$378.7b28.7x44.8x7.3x
Fri, 31 Jan 2025US$18.2tUS$2.3tUS$370.8b33.5x49x8x
Sun, 29 Dec 2024US$18.7tUS$2.3tUS$366.9b32.1x51x8.3x
Tue, 26 Nov 2024US$18.1tUS$2.2tUS$361.3b33.5x50.2x8.1x
Thu, 24 Oct 2024US$17.9tUS$2.2tUS$377.9b29.7x47.4x8.3x
Sat, 21 Sep 2024US$17.1tUS$2.2tUS$375.4b28.7x45.4x7.9x
Mon, 19 Aug 2024US$16.8tUS$2.1tUS$368.0b29.1x45.7x7.9x
Wed, 17 Jul 2024US$17.7tUS$2.1tUS$363.1b32x48.6x8.4x
Fri, 14 Jun 2024US$16.9tUS$2.1tUS$361.8b29.5x46.7x8x
Sun, 12 May 2024US$14.5tUS$2.0tUS$337.1b30.1x43x7.1x
Tue, 09 Apr 2024US$14.6tUS$2.0tUS$328.6b28.6x44.4x7.1x
Thu, 07 Mar 2024US$14.5tUS$2.0tUS$327.8b28.1x44.2x7.1x
Sat, 03 Feb 2024US$14.2tUS$2.1tUS$305.8b26.6x46.3x6.9x
Mon, 01 Jan 2024US$13.4tUS$2.1tUS$292.6b26.1x45.9x6.5x
Wed, 29 Nov 2023US$12.7tUS$2.0tUS$290.3b24.9x43.8x6.2x
Fri, 27 Oct 2023US$11.1tUS$2.0tUS$279.1b22.3x39.9x5.5x
Sun, 24 Sep 2023US$11.5tUS$2.0tUS$273.1b24.4x41.9x5.6x
Tue, 22 Aug 2023US$11.4tUS$2.0tUS$264.5b24.1x43.2x5.6x
Thu, 20 Jul 2023US$12.5tUS$2.0tUS$257.8b25.5x48.6x6.2x
Sat, 17 Jun 2023US$11.9tUS$2.0tUS$264.4b24.9x45.2x5.9x
Mon, 15 May 2023US$10.4tUS$2.0tUS$262.0b22.8x39.5x5.1x
Wed, 12 Apr 2023US$10.1tUS$2.0tUS$275.0b22.8x36.9x5x
Fri, 10 Mar 2023US$10.9tUS$2.3tUS$298.3b22.3x36.4x4.8x
Sun, 05 Feb 2023US$11.2tUS$2.3tUS$320.1b25.4x34.8x5x
Price to Earnings Ratio

34.8x


Total Market Cap: US$11.2tTotal Earnings: US$320.1bTotal Revenue: US$2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.2x202420252026
Current Industry PE
  • Investors are relatively neutral on the American Information Technology industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 45.2x.
  • The 3-year average PS ratio of 7.2x is lower than the industry's current PS ratio of 8.9x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 16% per year over the last three years.
  • Revenues for these companies have grown 4.4% 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 Market0.90%
Tech3.55%
Communications9.19%
Software4.56%
Tech Hardware3.69%
Semiconductors2.95%
IT1.54%
Electronic Equipment and Components-0.67%
Industry PE
  • Investors are most optimistic about the Semiconductors industry, which is trading close to its 3-year average PE ratio of 52.6x.
    • Analysts are expecting annual earnings growth of 25.4%, which is higher than its past year's earnings growth of 4.9% per year.
  • Investors are most pessimistic about the Tech Hardware industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 32.5x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 4.9% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.6% 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
MSFT MicrosoftUS$481.638.4%
+US$278.9b		8.9%PE34.1x
NVDA NVIDIAUS$191.523.6%
+US$162.3b		53.6%PE46.9x
AAPL AppleUS$256.443.5%
+US$129.2b		7.1%PE33.6x
MU Micron TechnologyUS$435.2811.9%
+US$52.0b		389.0%PE41.1x
ANET Arista NetworksUS$150.1518.0%
+US$28.8b		39.2%PE56.3x

Latest News

IBM
US$294.16
International Business Machines
7D
-1.1%
1Y
28.7%
APH
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Amphenol
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1Y
110.4%
STX
US$442.93
Seagate Technology Holdings
7D
28.7%
1Y
345.7%
ROP
US$360.37
Roper Technologies
7D
-10.9%
1Y
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ANET
US$150.15
Arista Networks
7D
18.0%
1Y
39.2%
NVDA
US$191.52
NVIDIA
7D
3.6%
1Y
53.6%
ACN
US$270.43
Accenture
7D
-3.7%
1Y
-27.8%

ACN: GenAI Modernization Partnerships And Cannibalization Risks Will Steer Future Returns

Analysts have nudged their fair value estimate for Accenture higher to about $292, a move of roughly $3, as recent research highlights renewed interest in the stock, supported by fresh coverage and upward price target revisions tied to GenAI driven enterprise modernization potential. Analyst Commentary Bullish Takeaways Bullish analysts see Accenture as a relatively attractive way to gain exposure to GenAI driven enterprise modernization, with the current valuation framed as reasonable versus its own history.
MSFT
US$481.63
Microsoft
7D
8.4%
1Y
8.9%
CSCO
US$78.96
Cisco Systems
7D
7.2%
1Y
32.6%

CSCO: AI Infrastructure And Networking Strength Will Support Multi Year Upside

Analysts nudged their price target on Cisco Systems higher to $86.00 from $85.43, citing firm networking trends, improving profit margins, and growing artificial intelligence related demand as key supports for the updated view. Analyst Commentary Recent research on Cisco highlights a mix of optimism around networking and artificial intelligence exposure, with some caution around security and the durability of current trends.
ARM
US$109.96
Arm Holdings
7D
-3.5%
1Y
-25.5%

ARM: AI Licensing And Royalty Momentum Will Drive Future Upside Potential

Analysts have raised their fair value estimate for Arm Holdings to $215 from $210, citing higher modeled revenue growth, stronger profit margins, and a lower future P/E multiple as they incorporate recent bullish research and more positive views on licensing, royalties, and AI-related demand. Analyst Commentary Recent Street research on Arm Holdings has tilted more positive, with several bullish analysts citing solid execution on licensing and royalties, as well as growing AI related exposure, as reasons for revisiting their valuation work.
INTC
US$48.78
Intel
7D
-10.2%
1Y
143.8%
QCOM
US$152.70
QUALCOMM
7D
-2.3%
1Y
-11.1%

QCOM: Future AI Data Center And Android Strength Will Offset Handset Uncertainty

Analysts have trimmed their fair value estimate for Qualcomm to about US$157.50 from roughly US$159.45. This reflects slightly higher discount rate assumptions and updated views on revenue growth, margins, and future P/E multiples, following mixed price target moves and a broader reassessment of the company's handset and AI accelerator opportunities.
AAPL
US$256.44
Apple
7D
3.5%
1Y
7.1%

Maintaining FV - it's all coming true

Am maintaining my FV on this one. This video does a great job of explaining the many years of weak product innovation, which will be hard to recover from.
AVGO
US$333.24
Broadcom
7D
1.4%
1Y
61.5%

AVGO: AI Custom Silicon Demand Will Drive Future Risk Reward Profile

Analysts raised their Broadcom fair value estimate from $403.66 to $456.56, reflecting expectations for higher projected revenue growth, slightly stronger profit margins, and a more moderate future P/E multiple supported by recent positive research on AI-related demand and custom silicon exposure. Analyst Commentary Recent Street research on Broadcom clusters around AI exposure, custom silicon, and the implications for valuation, margins, and long term growth execution.
MU
US$435.28
Micron Technology
7D
11.9%
1Y
389.0%

MU: AI Memory Supercycle Hype Will Eventually Meet New DRAM Capacity

Our fair value estimate for Micron Technology has been adjusted higher to US$176.14 from US$171.83, reflecting analysts' higher price targets and rationale around tight DRAM supply, strong AI driven memory demand, and expectations for improved margins and earnings power. Analyst Commentary Recent research has generally pointed to tight DRAM conditions, AI related memory demand, and constrained high bandwidth memory supply as key themes for Micron.
PLTR
US$157.35
Palantir Technologies
7D
-5.2%
1Y
93.7%