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U.S. Tech Sector Analysis

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies991
  • 7D0.02%
  • 3M-0.4%
  • 1Y25.2%
  • YTD0.2%

The Tech industry has stayed flat over the last week. The past year has been better, since the industry has gained 25% in that time. As for the next few years, earnings are expected to grow by 20% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 12 Jan 2026US$22.6tUS$2.6tUS$507.0b32.4x44.5x8.7x
Wed, 10 Dec 2025US$23.2tUS$2.6tUS$495.7b31.2x46.9x9x
Fri, 07 Nov 2025US$23.4tUS$2.5tUS$477.9b30.4x48.9x9.2x
Sun, 05 Oct 2025US$22.7tUS$2.5tUS$439.2b31.7x51.8x9.1x
Tue, 02 Sep 2025US$20.8tUS$2.5tUS$429.3b29.4x48.5x8.5x
Thu, 31 Jul 2025US$20.7tUS$2.4tUS$393.3b27.7x52.7x8.7x
Sat, 28 Jun 2025US$19.6tUS$2.4tUS$393.2b28.4x49.8x8.2x
Mon, 26 May 2025US$17.5tUS$2.4tUS$385.8b26.9x45.5x7.4x
Wed, 23 Apr 2025US$14.5tUS$2.3tUS$386.6b24.6x37.4x6.2x
Fri, 21 Mar 2025US$16.6tUS$2.3tUS$386.1b27.3x42.9x7.1x
Sun, 16 Feb 2025US$18.9tUS$2.3tUS$369.9b32.4x51x8.2x
Tue, 14 Jan 2025US$18.0tUS$2.3tUS$367.2b32.3x49x8x
Thu, 12 Dec 2024US$18.5tUS$2.3tUS$362.8b33.1x50.9x8.2x
Sat, 09 Nov 2024US$18.3tUS$2.2tUS$352.5b33.3x52x8.2x
Mon, 07 Oct 2024US$17.2tUS$2.2tUS$378.1b29.7x45.4x7.9x
Wed, 04 Sep 2024US$16.8tUS$2.2tUS$378.3b28.7x44.4x7.8x
Fri, 02 Aug 2024US$16.5tUS$2.1tUS$365.6b30.7x45.2x7.8x
Sun, 30 Jun 2024US$16.8tUS$2.1tUS$362.8b29.7x46.4x8x
Tue, 28 May 2024US$15.4tUS$2.1tUS$349.9b30.3x43.9x7.5x
Thu, 25 Apr 2024US$13.9tUS$2.0tUS$327.8b28.4x42.5x6.8x
Sat, 23 Mar 2024US$14.9tUS$2.0tUS$328.6b27.8x45.4x7.3x
Mon, 19 Feb 2024US$14.2tUS$2.0tUS$310.2b27.5x45.9x7x
Wed, 17 Jan 2024US$13.4tUS$2.0tUS$292.0b25.7x46x6.5x
Fri, 15 Dec 2023US$13.2tUS$2.1tUS$293.6b26.2x45x6.4x
Sun, 12 Nov 2023US$12.3tUS$2.0tUS$279.7b23.4x44.1x6.1x
Tue, 10 Oct 2023US$11.8tUS$2.0tUS$269.8b24.7x43.8x5.8x
Thu, 07 Sep 2023US$12.1tUS$2.0tUS$272.7b24.1x44.5x5.9x
Sat, 05 Aug 2023US$11.9tUS$2.0tUS$262.2b25.6x45.4x5.9x
Mon, 03 Jul 2023US$12.0tUS$2.0tUS$259.9b25x46.3x5.9x
Wed, 31 May 2023US$11.4tUS$2.0tUS$262.6b24x43.5x5.6x
Fri, 28 Apr 2023US$10.2tUS$2.0tUS$275.8b20.6x37.1x5x
Sun, 26 Mar 2023US$10.1tUS$2.0tUS$278.4b22.1x36.1x4.9x
Tue, 21 Feb 2023US$11.0tUS$2.3tUS$297.0b24.2x36.9x4.9x
Thu, 19 Jan 2023US$10.2tUS$2.2tUS$327.5b23.5x31x4.5x
Price to Earnings Ratio

31x


Total Market Cap: US$10.2tTotal Earnings: US$327.5bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45x202420252026
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 45.0x.
  • The 3-year average PS ratio of 7.1x is lower than the industry's current PS ratio of 8.7x.
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 4.8% 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 Market1.24%
Tech0.016%
IT2.08%
Software1.62%
Semiconductors0.53%
Electronic Equipment and Components0.30%
Tech Hardware-3.68%
Communications-3.80%
Industry PE
  • Investors are most optimistic about the IT industry even though it's trading below its 3-year average PE ratio of 68.9x.
    • Analysts are expecting annual earnings growth of 18.4%, which is lower than the prior year's growth of 22.0% 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 32.3x.
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 4.7% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.2% 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$479.281.4%
+US$47.8b		14.9%PE34x
MU Micron TechnologyUS$345.0910.6%
+US$37.1b		263.0%PE32.6x
INTC IntelUS$45.5515.7%
+US$30.8b		137.2%PE1146.8x
LRCX Lam ResearchUS$218.3612.1%
+US$29.6b		193.3%PE47.2x
ORCL OracleUS$198.523.1%
+US$17.0b		29.0%PE37x

Latest News

ORCL
US$198.52
Oracle
7D
3.1%
1Y
29.0%

ORCL: AI Infrastructure Demand And Data Center Buildout Will Drive Future Upside

Analysts have trimmed their price targets on Oracle, cutting our fair value estimate by about US$51 to US$291.08. They are factoring in concerns around the concentration of recent RPO growth in the OpenAI commitment, higher investment needs that may pressure margins, and a lower future P/E multiple, despite still robust expectations for cloud and AI driven revenue growth.
NVDA
US$184.86
NVIDIA
7D
-1.7%
1Y
38.8%

NVDA: AI Infrastructure Order Visibility And China Constraints Will Shape Future Leadership

Analysts trimmed our Nvidia fair value estimate slightly to $171.51 from $175.08, even as they raised revenue growth assumptions and referenced a series of higher Street price targets tied to continued AI data center momentum, Blackwell and Rubin order visibility, and expectations that Nvidia remains a central supplier in large hyperscale and OpenAI related buildouts. Analyst Commentary The recent wave of research on Nvidia has centered on its role in AI data centers, the scale of Blackwell and Rubin demand, and how these themes filter through to earnings expectations and valuations.
LRCX
US$218.36
Lam Research
7D
12.1%
1Y
193.3%

Market Participants Recognise Lam Research Corporation's (NASDAQ:LRCX) Earnings Pushing Shares 30% Higher

Jan 10
Market Participants Recognise Lam Research Corporation's (NASDAQ:LRCX) Earnings Pushing Shares 30% Higher
MRVL
US$83.22
Marvell Technology
7D
-7.8%
1Y
-27.7%

MRVL: AI Infrastructure Exposure Will Face Policy And ASIC Execution Crosswinds

Narrative Update: Marvell Technology Analysts have lifted their average fair value estimate for Marvell Technology from about $82.64 to $90.00. This change is supported by research citing the company's role in AI infrastructure, including custom ASIC and connectivity offerings.
AAPL
US$259.37
Apple
7D
-3.0%
1Y
10.7%
ANET
US$122.89
Arista Networks
7D
-10.4%
1Y
9.1%

ANET: AI Networking Ecosystem Will Support Future Upside Despite Margin Concerns

Analysts have lifted their fair value estimate for Arista Networks from $130.00 to about $193.28, reflecting updated assumptions around slightly higher discount rates, modestly softer margin expectations, and ongoing AI driven growth potential despite recent debates on valuation and rating changes. Analyst Commentary Recent research highlights a mix of enthusiasm and caution around Arista Networks, with bullish analysts focused on the company’s role in AI networking and more conservative views pointing to valuation and margin pressures.
MSFT
US$479.28
Microsoft
7D
1.4%
1Y
14.9%
INTC
US$45.55
Intel
7D
15.7%
1Y
137.2%
NOW
US$141.80
ServiceNow
7D
-3.9%
1Y
-30.2%
CSCO
US$73.88
Cisco Systems
7D
-2.2%
1Y
25.7%

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

Analysts nudged their Cisco Systems price target higher, citing a modest uptick in fair value and a slightly richer assumed future P/E multiple, supported by recent research highlighting continued strength in networking and growing artificial intelligence related demand despite softer security trends. Analyst Commentary Recent research on Cisco Systems reflects a generally constructive stance, with several firms lifting price targets and a couple of upgrades that highlight how investors are weighing networking strength and artificial intelligence demand against softer security trends.
NET
US$182.78
Cloudflare
7D
-7.5%
1Y
65.1%

NET: AI And Security Hype Will Likely Magnify Future Outage Risks

Analysts have trimmed their fair value estimate for Cloudflare from US$135.41 to US$132.40, citing a mix of higher projected profitability, faster revenue growth, a lower assumed future P/E multiple, and recent Street research that highlights both strong Q3 execution and growing interest in Cloudflare's role at the intersection of AI and security. Analyst Commentary Recent Street research on Cloudflare points to strong Q3 execution, with several firms lifting their price targets after what they describe as an impressive quarter.
AMD
US$203.17
Advanced Micro Devices
7D
-8.1%
1Y
73.2%

AMD: AI And Rack Scale Execution Will Define The Next Chapter

Analysts have raised their AMD fair value estimate from about $137 to roughly $208. This change reflects higher assumptions for revenue growth and profit margins in AI accelerators and rack scale systems, partly offset by a slightly higher discount rate and more conservative future P/E expectations.
TXN
US$190.31
Texas Instruments
7D
7.4%
1Y
-0.4%

TXN: Margin Reset And Cyclical Softness Will Set Up Future Rebound

Narrative Update Analysts have reduced the implied fair value for Texas Instruments to $245 from $260. This reflects updated views on higher required returns, more moderate revenue growth, softer profit margins, and a higher future P/E multiple following recent price target cuts and more cautious commentary on margins, utilization, and end demand.
MU
US$345.09
Micron Technology
7D
10.6%
1Y
263.0%

MU: AI Memory Supercycle Hype Will Likely Drive Future Multiple Compression

Micron Technology's fair value estimate has been raised from approximately $105.48 to $171.83. Analysts attribute this change to tightening DRAM supply, accelerating high bandwidth memory ramps for AI workloads, and improving margin and earnings visibility despite recent sector volatility.
AMAT
US$301.18
Applied Materials
7D
5.9%
1Y
76.3%

AMAT: Future Multiple Compression Will Likely Pressure Elevated Share Price

Our fair value estimate for Applied Materials has been raised to $180 from $160.41 as analysts lift price targets into the mid to high $200s, citing above-consensus execution, resilient foundry and memory demand, de-risked China exposure, and strengthening recurring services growth. Analyst Commentary Street research has turned more constructive on Applied Materials, with multiple firms lifting price targets into the $250 to $270 range following solid quarterly execution, above-consensus guidance, and stronger visibility into 2026 wafer fab equipment demand.
SNDK
US$377.41
Sandisk
7D
37.7%
1Y
n/a