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U.S. Tech Sector Analysis

UpdatedFeb 06, 2026
DataAggregated Company Financials
Companies986
  • 7D-6.8%
  • 3M-9.2%
  • 1Y12.0%
  • YTD-7.9%

Over the last 7 days, the Tech industry has dropped 6.8%, driven by a pullback from NVIDIA of 10%. On the other hand Apple is actually up 6.8%. In the past year, the industry has gained 12%. As for the next few years, earnings are expected to grow by 19% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 07 Feb 2026US$21.3tUS$2.6tUS$517.1b30.3x41.2x8.1x
Mon, 05 Jan 2026US$22.5tUS$2.6tUS$506.7b31x44.5x8.7x
Wed, 03 Dec 2025US$22.8tUS$2.6tUS$494.2b30.7x46.1x8.9x
Fri, 31 Oct 2025US$24.0tUS$2.5tUS$466.8b29.7x51.4x9.5x
Sun, 28 Sep 2025US$22.2tUS$2.5tUS$437.8b31.3x50.6x9x
Tue, 26 Aug 2025US$20.8tUS$2.4tUS$418.9b28.6x49.8x8.6x
Thu, 24 Jul 2025US$20.3tUS$2.4tUS$393.0b28.5x51.7x8.5x
Sat, 21 Jun 2025US$18.7tUS$2.4tUS$391.4b27.2x47.9x7.9x
Mon, 19 May 2025US$18.1tUS$2.4tUS$385.4b26.8x47.1x7.7x
Wed, 16 Apr 2025US$15.5tUS$2.3tUS$386.7b25x40x6.6x
Fri, 14 Mar 2025US$16.3tUS$2.3tUS$386.5b26.4x42.3x7x
Sun, 09 Feb 2025US$18.2tUS$2.3tUS$372.2b33.2x48.8x7.9x
Tue, 07 Jan 2025US$18.6tUS$2.3tUS$366.9b33.5x50.7x8.2x
Thu, 05 Dec 2024US$18.5tUS$2.2tUS$361.2b34x51.1x8.2x
Sat, 02 Nov 2024US$17.1tUS$2.2tUS$353.3b29.7x48.5x7.7x
Mon, 30 Sep 2024US$17.2tUS$2.2tUS$378.1b29.7x45.4x7.9x
Wed, 28 Aug 2024US$16.9tUS$2.1tUS$367.5b29.5x45.9x7.9x
Fri, 26 Jul 2024US$16.3tUS$2.1tUS$362.1b31.1x45.1x7.7x
Sun, 23 Jun 2024US$16.9tUS$2.1tUS$360.5b30.4x46.8x8x
Tue, 21 May 2024US$14.9tUS$2.0tUS$337.1b30x44.3x7.3x
Thu, 18 Apr 2024US$14.0tUS$2.0tUS$328.5b28.1x42.7x6.9x
Sat, 16 Mar 2024US$14.7tUS$2.0tUS$325.3b27.9x45.3x7.2x
Mon, 12 Feb 2024US$14.6tUS$2.0tUS$308.4b26.8x47.2x7.2x
Wed, 10 Jan 2024US$13.2tUS$2.0tUS$292.7b26.3x45.2x6.5x
Fri, 08 Dec 2023US$12.6tUS$2.1tUS$292.9b25.1x43.1x6.2x
Sun, 05 Nov 2023US$11.8tUS$2.0tUS$279.2b23.1x42.4x5.8x
Tue, 03 Oct 2023US$11.5tUS$2.0tUS$269.9b24.8x42.5x5.6x
Thu, 31 Aug 2023US$12.2tUS$2.0tUS$270.6b24.8x44.9x6x
Sat, 29 Jul 2023US$12.3tUS$2.0tUS$263.2b24.8x46.6x6x
Mon, 26 Jun 2023US$11.7tUS$2.0tUS$264.6b24.1x44.2x5.7x
Wed, 24 May 2023US$10.7tUS$2.0tUS$260.7b23.2x41x5.3x
Fri, 21 Apr 2023US$10.2tUS$2.0tUS$275.1b21.7x37x5x
Sun, 19 Mar 2023US$10.2tUS$2.2tUS$268.8b22.3x38x4.7x
Tue, 14 Feb 2023US$11.2tUS$2.2tUS$296.3b24.2x37.7x5x
Price to Earnings Ratio

37.7x


Total Market Cap: US$11.2tTotal Earnings: US$296.3bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.3x202420252026
Current Industry PE
  • Investors are pessimistic on the American Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 39.9x which is lower than its 3-year average PE of 45.3x.
  • The 3-year average PS ratio of 7.2x is lower than the industry's current PS ratio of 8.1x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 21% per year over the last three years.
  • Revenues for these companies have grown 5.3% 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-2.98%
Tech-6.82%
Tech Hardware5.99%
Communications-0.16%
Electronic Equipment and Components-4.48%
Semiconductors-8.73%
Software-12.23%
IT-12.84%
Industry PE
  • Investors are most optimistic about the Semiconductors industry, which is trading close to its 3-year average PE ratio of 52.8x.
    • Analysts are expecting annual earnings growth of 24.1%, which is higher than its past year's earnings growth of 4.6% per year.
  • Investors are most pessimistic about the Software industry, which is trading below its 3-year average of 54.5x.
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 growth rate of 4.6% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.5% 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
AAPL AppleUS$278.127.2%
+US$273.7b		22.2%PE34.7x
CSCO Cisco SystemsUS$84.788.3%
+US$25.5b		36.2%PE32.4x
INTC IntelUS$50.598.9%
+US$20.6b		164.9%PS4.8x
ARM Arm HoldingsUS$123.7017.4%
+US$19.6b		-23.9%PE164x
GLW CorningUS$122.1618.3%
+US$16.1b		130.6%PE65x

Latest News

APP
US$406.72
AppLovin
7D
-14.0%
1Y
8.3%
LITE
US$551.99
Lumentum Holdings
7D
40.9%
1Y
542.6%

After Leaping 27% Lumentum Holdings Inc. (NASDAQ:LITE) Shares Are Not Flying Under The Radar

Feb 06
After Leaping 27% Lumentum Holdings Inc. (NASDAQ:LITE) Shares Are Not Flying Under The Radar
PLTR
US$135.90
Palantir Technologies
7D
-7.3%
1Y
22.6%

Need To Know: Analysts Are Much More Bullish On Palantir Technologies Inc. (NASDAQ:PLTR)

Feb 06
Need To Know: Analysts Are Much More Bullish On Palantir Technologies Inc. (NASDAQ:PLTR)
GLW
US$122.16
Corning
7D
18.3%
1Y
130.6%

Corning Incorporated's (NYSE:GLW) P/E Is Still On The Mark Following 26% Share Price Bounce

Feb 06
Corning Incorporated's (NYSE:GLW) P/E Is Still On The Mark Following 26% Share Price Bounce
WDC
US$282.58
Western Digital
7D
12.9%
1Y
338.4%
TER
US$300.11
Teradyne
7D
24.5%
1Y
165.0%

TER: AI Test Demand And Robotics Expansion Will Drive Bullish Outlook

Our updated fair value estimate for Teradyne rises from US$240.00 to about US$396.82. This reflects analysts' higher price targets across multiple firms and their rationale tied to stronger industry spending expectations, while incorporating a slightly lower discount rate and adjusted assumptions for revenue growth, profit margins and future P/E.
ARM
US$123.70
Arm Holdings
7D
17.4%
1Y
-23.9%
MSFT
US$401.14
Microsoft
7D
-6.8%
1Y
-2.1%
INTC
US$50.59
Intel
7D
8.9%
1Y
164.9%
ORCL
US$142.82
Oracle
7D
-13.2%
1Y
-18.1%
AMD
US$208.44
Advanced Micro Devices
7D
-12.0%
1Y
93.8%

AMD: AI Data Center Demand Will Drive Long-Term Earnings Power

Analysts have raised their price targets on Advanced Micro Devices by up to $30, citing healthy server demand, confidence in the AI accelerator roadmap, and updated assumptions for growth, margins, and a higher future P/E multiple in their models. Analyst Commentary Recent research on Advanced Micro Devices has tilted clearly constructive, with several bullish analysts revisiting their models and assumptions around AI, servers, and long term earnings power.
AAPL
US$278.12
Apple
7D
7.2%
1Y
22.2%

AAPL: AI Partnership And Services Engine Will Support Measured Long-Term Risk Reward

The analyst price target for Apple nudged higher to around $292 from about $287 as analysts factor in firmer App Store trends and a series of recent target hikes tied to services strength and the Google Gemini partnership, while also trimming long term revenue growth and P/E assumptions, but slightly lifting profit margin expectations. Analyst Commentary Recent research on Apple has centered on two main themes: the pace of services growth, particularly in the App Store, and the implications of the Google Gemini partnership and rising memory costs for margins and valuation.
SHOP
US$112.05
Shopify
7D
-14.6%
1Y
-4.6%

SHOP: AI Efficiencies And Q4 Execution Will Support Higher Earnings Power

The analyst fair value estimate for Shopify has increased from US$200 to about US$218, reflecting updated assumptions on revenue growth, profitability and future P/E following recent research highlighting Q4 fundamentals, AI driven operating leverage and a series of price target revisions and rating changes across the Street. Analyst Commentary Street research around Shopify has skewed constructive, with several bullish analysts revisiting their models and resetting price targets and ratings after recent earnings and product updates.
CSCO
US$84.82
Cisco Systems
7D
8.3%
1Y
36.2%
MU
US$394.69
Micron Technology
7D
-4.9%
1Y
327.6%

MU: AI Memory Shortages Will Eventually Draw New Capacity And Pressure Returns

Analysts have lifted their fair value estimate for Micron from US$249.31 to US$365.22. They point to higher assumed revenue growth, wider profit margins and a lower future P/E multiple, supported by recent price target increases and generally positive commentary around tight memory supply and AI driven demand.
NVDA
US$185.41
NVIDIA
7D
-3.0%
1Y
42.8%