Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Tech Sector Analysis

UpdatedDec 20, 2025
DataAggregated Company Financials
Companies977
  • 7D0.3%
  • 3M1.1%
  • 1Y20.4%
  • YTD22.2%

The Tech is pretty flat in the last 7 days, but NVIDIA has stood out, gaining 3.4%. The past year has been better, since the industry has gained 20% 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
Sun, 21 Dec 2025US$22.1tUS$2.6tUS$506.9b30.9x43.5x8.5x
Tue, 18 Nov 2025US$22.6tUS$2.5tUS$479.5b29.7x47.2x8.9x
Thu, 16 Oct 2025US$22.4tUS$2.5tUS$439.1b32.5x51.1x9x
Sat, 13 Sep 2025US$21.7tUS$2.5tUS$435.6b29.7x49.8x8.8x
Mon, 11 Aug 2025US$21.2tUS$2.4tUS$417.0b28x50.8x8.7x
Wed, 09 Jul 2025US$19.9tUS$2.4tUS$393.2b29.5x50.7x8.4x
Fri, 06 Jun 2025US$18.4tUS$2.4tUS$388.9b27.6x47.3x7.7x
Sun, 04 May 2025US$16.7tUS$2.3tUS$386.4b26.4x43.2x7.1x
Tue, 01 Apr 2025US$15.9tUS$2.3tUS$385.6b26.7x41.3x6.8x
Thu, 27 Feb 2025US$17.8tUS$2.3tUS$368.6b30.2x48.4x7.7x
Sat, 25 Jan 2025US$18.9tUS$2.3tUS$365.6b33.9x51.8x8.4x
Mon, 23 Dec 2024US$18.6tUS$2.3tUS$366.9b31.5x50.6x8.2x
Wed, 20 Nov 2024US$17.8tUS$2.2tUS$351.2b32x50.6x8x
Fri, 18 Oct 2024US$17.6tUS$2.2tUS$378.1b31x46.7x8.1x
Sun, 15 Sep 2024US$16.8tUS$2.2tUS$375.4b28.3x44.7x7.8x
Tue, 13 Aug 2024US$15.8tUS$2.1tUS$369.7b27.2x42.7x7.4x
Thu, 11 Jul 2024US$17.6tUS$2.1tUS$362.9b30x48.5x8.3x
Sat, 08 Jun 2024US$15.6tUS$2.1tUS$351.2b29.5x44.5x7.6x
Mon, 06 May 2024US$14.3tUS$2.0tUS$336.2b28.2x42.7x7x
Wed, 03 Apr 2024US$14.8tUS$2.0tUS$328.6b28.3x45x7.2x
Fri, 01 Mar 2024US$14.4tUS$2.0tUS$327.2b27.7x44.2x7.1x
Sun, 28 Jan 2024US$14.1tUS$2.0tUS$295.9b27x47.5x6.9x
Tue, 26 Dec 2023US$13.4tUS$2.1tUS$292.5b25.9x45.8x6.5x
Thu, 23 Nov 2023US$12.8tUS$2.0tUS$281.5b24.8x45.4x6.3x
Sat, 21 Oct 2023US$11.4tUS$2.0tUS$269.7b23.5x42.2x5.6x
Mon, 18 Sep 2023US$11.8tUS$2.0tUS$272.9b23.9x43.2x5.8x
Wed, 16 Aug 2023US$11.6tUS$2.0tUS$263.5b24.7x44.2x5.7x
Fri, 14 Jul 2023US$12.3tUS$2.0tUS$257.8b25.6x47.6x6.1x
Sun, 11 Jun 2023US$11.5tUS$2.0tUS$264.2b24.4x43.4x5.6x
Tue, 09 May 2023US$10.4tUS$2.0tUS$262.0b22.3x39.6x5.1x
Thu, 06 Apr 2023US$10.2tUS$2.0tUS$275.3b22.4x37x5x
Sat, 04 Mar 2023US$11.0tUS$2.3tUS$298.5b23.3x37x4.9x
Mon, 30 Jan 2023US$10.7tUS$2.2tUS$321.9b24.5x33.4x4.8x
Wed, 28 Dec 2022US$9.6tUS$2.2tUS$327.5b21.5x29.5x4.3x
Price to Earnings Ratio

29.5x


Total Market Cap: US$9.6tTotal Earnings: US$327.5bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.7x202320242025
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 44.7x.
  • The 3-year average PS ratio of 7.0x is lower than the industry's current PS ratio of 8.5x.
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 Market-0.062%
Tech0.35%
Communications2.34%
Semiconductors0.79%
Software0.78%
IT0.38%
Electronic Equipment and Components0.27%
Tech Hardware-1.50%
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 19.6%, which is higher than its past year's earnings growth of 17.1% 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 32.0x.
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 8.9% 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$180.993.4%
+US$145.1b		34.4%PE44.3x
MSFT MicrosoftUS$485.921.5%
+US$54.9b		11.3%PE34.4x
MU Micron TechnologyUS$265.9210.3%
+US$28.6b		195.1%PE25.1x
PLTR Palantir TechnologiesUS$193.385.3%
+US$23.4b		140.1%PE420.8x
APP AppLovinUS$721.377.6%
+US$17.1b		111.6%PE83.6x

Latest News

AVGO
US$340.36
Broadcom
7D
-5.4%
1Y
54.2%
APH
US$135.29
Amphenol
7D
4.7%
1Y
91.7%

APH: AI Connectivity Demand Will Support Margins And Sustained Earnings Outperformance

The Analyst Price Target for Amphenol has inched higher to approximately $149 per share from about $148 per share, as analysts point to sustained earnings beats, improving margin outlooks and rising end market demand across autos, hyperscale data centers and broader connectivity applications. Analyst Commentary Bullish analysts have broadly raised their price targets on Amphenol following a string of earnings beats and constructive guidance, highlighting both cyclical recovery and structural growth drivers across key end markets.
MU
US$265.92
Micron Technology
7D
10.3%
1Y
195.1%
APP
US$721.37
AppLovin
7D
7.6%
1Y
111.6%

Subdued Growth No Barrier To AppLovin Corporation (NASDAQ:APP) With Shares Advancing 31%

Dec 19
Subdued Growth No Barrier To AppLovin Corporation (NASDAQ:APP) With Shares Advancing 31%
LRCX
US$172.27
Lam Research
7D
7.3%
1Y
140.0%

LRCX: Recent AI And Memory Upcycle Euphoria Will Likely Fade

Analysts have raised their price target on Lam Research to approximately $110 from about $81, citing the company's stronger than expected earnings momentum, improving wafer fab equipment upcycle exposure, and durable AI driven demand for advanced memory and 3D stacking technologies. Analyst Commentary Recent Street research reflects a broadly constructive view on Lam Research, with multiple firms lifting price targets and highlighting the company’s leverage to an improving wafer fab equipment cycle, AI driven memory demand, and stronger than expected profitability.
NVDA
US$180.99
NVIDIA
7D
3.4%
1Y
34.4%
PLTR
US$193.38
Palantir Technologies
7D
5.3%
1Y
140.1%
ANET
US$131.12
Arista Networks
7D
5.1%
1Y
16.2%
QCOM
US$175.25
QUALCOMM
7D
-1.7%
1Y
14.6%
AAPL
US$273.67
Apple
7D
-1.7%
1Y
7.5%
MSFT
US$485.92
Microsoft
7D
1.5%
1Y
11.3%

MSFT: Expanded AI Partnerships And Infrastructure Will Drive Durable Cloud Leadership

Analysts have nudged their Microsoft price target slightly higher to approximately $650, reflecting confidence that the company's broadened AI partnerships, resilient Azure growth, and durable margin profile justify modestly stronger long term revenue and earnings assumptions despite rising capex and hyperscaler caution. Analyst Commentary Street research remains broadly constructive on Microsoft, with a cluster of recent notes highlighting the company as a primary beneficiary of accelerating AI adoption, robust cloud demand, and deepened model partnerships, even as a minority of voices urge greater caution around hyperscaler capital intensity and returns.
IBM
US$300.98
International Business Machines
7D
-2.7%
1Y
34.8%

IBM: Quantum Optionality And Software Execution Will Drive Returns Amid Workforce Shift

Analysts have nudged their fair value estimate for International Business Machines slightly higher, lifting the price target by about $3 to reflect steady core software execution, improving long term quantum revenue optionality, and modestly richer earnings multiples, despite only incremental changes to growth and margin assumptions. Analyst Commentary Recent Street research presents a mixed but generally constructive view on IBM, with several bullish analysts lifting price targets on the back of solid execution in software, consulting, and emerging quantum capabilities, while more cautious voices point to valuation and growth hurdles that still need to be cleared.
INTC
US$36.82
Intel
7D
-2.6%
1Y
88.6%
NOW
US$155.31
ServiceNow
7D
-10.2%
1Y
-28.8%
CRWD
US$481.28
CrowdStrike Holdings
7D
-4.7%
1Y
32.8%

CRWD: Elevated Expectations For AI Security May Trigger Future Multiple Compression

Analysts have raised their fair value estimate for CrowdStrike Holdings to approximately $416 from about $363, citing broadly higher Street price targets. These targets are underpinned by expectations for sustained net new annual recurring revenue momentum, improving profitability, and durable double digit long term growth supported by AI driven security demand.
ARM
US$114.03
Arm Holdings
7D
-12.9%
1Y
-13.7%

ARM Risks Mount As AI-Driven Royalties May Not Justify Premium Multiple

We raise our fair value estimate for Arm Holdings to approximately $99 per share from about $86, reflecting analysts' higher price targets driven by solid earnings beats, accelerating licensing and AI related royalty growth, and improved long term revenue and multiple assumptions, despite a modestly higher discount rate and slightly lower profit margin outlook. Analyst Commentary Recent Street research on Arm reflects a generally constructive outlook on earnings power and artificial intelligence related optionality, but it also highlights areas of caution that could pressure the stock's premium valuation if execution falters.