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U.S. Tech Sector Analysis
UpdatedFeb 19, 2025
DataAggregated Company Financials
Companies963
- 7D2.7%
- 3M5.1%
- 1Y31.7%
- YTD3.5%
In the last week, the Tech industry is up 2.7%, with NVIDIA up 6.2%. In the last 12 months, the industry was up 32%. Looking forward, earnings are forecast to grow by 18% annually.
Sector Valuation and Performance
Has the U.S. Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 21 Feb 2025 | US$18.9t | US$2.3t | US$369.6b | 32.1x | 51x | 8.2x |
| Sun, 19 Jan 2025 | US$18.4t | US$2.3t | US$367.0b | 33.9x | 50x | 8.1x |
| Tue, 17 Dec 2024 | US$18.8t | US$2.3t | US$363.6b | 32.1x | 51.6x | 8.3x |
| Thu, 14 Nov 2024 | US$18.2t | US$2.2t | US$352.6b | 32.9x | 51.7x | 8.2x |
| Sat, 12 Oct 2024 | US$17.6t | US$2.2t | US$378.2b | 30.4x | 46.5x | 8.1x |
| Mon, 09 Sep 2024 | US$15.6t | US$2.2t | US$374.5b | 27.2x | 41.7x | 7.2x |
| Wed, 07 Aug 2024 | US$15.1t | US$2.1t | US$362.4b | 28.7x | 41.6x | 7.1x |
| Fri, 05 Jul 2024 | US$17.4t | US$2.1t | US$362.9b | 30.8x | 47.9x | 8.2x |
| Sun, 02 Jun 2024 | US$15.1t | US$2.1t | US$351.1b | 29.5x | 43x | 7.3x |
| Tue, 30 Apr 2024 | US$14.2t | US$2.1t | US$335.6b | 28.5x | 42.3x | 6.9x |
| Thu, 28 Mar 2024 | US$14.8t | US$2.0t | US$328.2b | 28.1x | 45.1x | 7.2x |
| Sat, 24 Feb 2024 | US$14.4t | US$2.0t | US$322.2b | 27.5x | 44.8x | 7.1x |
| Mon, 22 Jan 2024 | US$14.0t | US$2.0t | US$292.0b | 26.5x | 47.8x | 6.8x |
| Wed, 20 Dec 2023 | US$13.4t | US$2.1t | US$293.6b | 25.9x | 45.8x | 6.5x |
| Fri, 17 Nov 2023 | US$12.6t | US$2.0t | US$281.3b | 24.1x | 44.9x | 6.2x |
| Sun, 15 Oct 2023 | US$11.7t | US$2.0t | US$270.2b | 24.8x | 43.5x | 5.8x |
| Tue, 12 Sep 2023 | US$12.0t | US$2.0t | US$272.9b | 23.6x | 44.1x | 5.9x |
| Thu, 10 Aug 2023 | US$11.6t | US$2.0t | US$262.9b | 25.6x | 44.3x | 5.7x |
| Sat, 08 Jul 2023 | US$11.9t | US$2.0t | US$258.1b | 24.5x | 46x | 5.9x |
| Mon, 05 Jun 2023 | US$11.5t | US$2.0t | US$264.1b | 24.7x | 43.7x | 5.7x |
| Wed, 03 May 2023 | US$10.2t | US$2.0t | US$264.2b | 20.7x | 38.6x | 5x |
| Fri, 31 Mar 2023 | US$10.3t | US$2.0t | US$274.8b | 22.9x | 37.3x | 5x |
| Sun, 26 Feb 2023 | US$10.7t | US$2.3t | US$295.9b | 23.2x | 36.1x | 4.7x |
| Tue, 24 Jan 2023 | US$10.6t | US$2.2t | US$327.5b | 23.9x | 32.2x | 4.7x |
| Thu, 22 Dec 2022 | US$10.0t | US$2.3t | US$330.0b | 21.9x | 30.3x | 4.4x |
| Sat, 19 Nov 2022 | US$10.3t | US$2.2t | US$331.0b | 22.1x | 31.2x | 4.6x |
| Mon, 17 Oct 2022 | US$9.2t | US$2.2t | US$345.2b | 18.6x | 26.7x | 4.2x |
| Wed, 14 Sep 2022 | US$11.1t | US$2.2t | US$346.8b | 21.5x | 32x | 5.1x |
| Fri, 12 Aug 2022 | US$11.8t | US$2.2t | US$350.9b | 23.5x | 33.6x | 5.4x |
| Sun, 10 Jul 2022 | US$10.7t | US$2.2t | US$359.4b | 23.2x | 29.7x | 5x |
| Tue, 07 Jun 2022 | US$11.2t | US$2.1t | US$358.5b | 25.6x | 31.3x | 5.2x |
| Thu, 05 May 2022 | US$11.6t | US$2.1t | US$357.5b | 23.9x | 32.6x | 5.6x |
| Sat, 02 Apr 2022 | US$13.1t | US$2.1t | US$346.1b | 25.5x | 37.8x | 6.4x |
| Mon, 28 Feb 2022 | US$12.8t | US$2.0t | US$346.0b | 26.1x | 36.9x | 6.3x |
Price to Earnings Ratio
36.9x
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 51.0x which is higher than its 3-year average PE of 40.4x.
- The 3-year average PS ratio of 6.2x 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 2.2% per year over the last three years.
- Revenues for these companies have grown 4.3% 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 | 1.21% | |
| Tech | 2.71% | |
| Tech Hardware | 5.18% | |
| Semiconductors | 3.31% | |
| Software | 1.47% | |
| IT | 1.22% | |
| Electronic Equipment and Components | 0.80% | |
| Communications | -1.24% | |
Industry PE
- Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 41.7x.
- Analysts are expecting annual earnings growth of 24.3%, which is higher than its past year's earnings decline of 1.6% 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 25.6x.
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 decline of 1.6% per year.
- In contrast, the Tech Hardware industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| AAPL Apple | US$245.83 | 1.8% +US$64.6b | 33.3% | PE38.4x | |
| MSFT Microsoft | US$416.13 | 1.4% +US$41.6b | 1.1% | PE33.4x | |
| NVDA NVIDIA | US$140.11 | 0.9% +US$30.9b | 77.8% | PE54.4x | |
| TXN Texas Instruments | US$203.96 | 12.8% +US$21.0b | 23.3% | PE38.9x | |
| ADI Analog Devices | US$243.82 | 16.5% +US$17.1b | 27.0% | PE77.3x |
