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U.S. Tech Sector Analysis

UpdatedMar 22, 2026
DataAggregated Company Financials
Companies982
  • 7D-1.7%
  • 3M-8.6%
  • 1Y24.5%
  • YTD-8.4%

Over the last 7 days, the Tech industry has dropped 1.7%, driven by NVIDIA declining 4.2%. In contrast, Lam Research has gained 7.6%. In the past year, the industry has gained 24%. 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
Sun, 22 Mar 2026US$20.6tUS$2.7tUS$555.5b29.5x37.1x7.6x
Tue, 17 Feb 2026US$21.4tUS$2.6tUS$520.2b29.8x41.1x8.1x
Thu, 15 Jan 2026US$22.5tUS$2.6tUS$500.6b32x45x8.8x
Sat, 13 Dec 2025US$23.1tUS$2.6tUS$503.6b31.1x45.8x8.9x
Mon, 10 Nov 2025US$22.8tUS$2.5tUS$478.4b30.2x47.6x9x
Wed, 08 Oct 2025US$22.9tUS$2.5tUS$439.1b31.2x52.1x9.2x
Fri, 05 Sep 2025US$20.8tUS$2.5tUS$429.6b28.3x48.3x8.5x
Sun, 03 Aug 2025US$20.3tUS$2.4tUS$413.0b27.6x49.1x8.4x
Tue, 01 Jul 2025US$19.6tUS$2.4tUS$393.2b28.8x49.8x8.2x
Thu, 29 May 2025US$18.0tUS$2.4tUS$386.0b27.4x46.6x7.6x
Sat, 26 Apr 2025US$15.8tUS$2.3tUS$386.0b26x41x6.8x
Mon, 24 Mar 2025US$16.6tUS$2.3tUS$386.9b27.2x42.9x7.1x
Wed, 19 Feb 2025US$18.9tUS$2.3tUS$369.6b32.1x51x8.2x
Fri, 17 Jan 2025US$18.3tUS$2.3tUS$367.0b33.3x49.8x8.1x
Sun, 15 Dec 2024US$18.8tUS$2.3tUS$363.6b32.5x51.6x8.3x
Tue, 12 Nov 2024US$18.3tUS$2.2tUS$349.2b33.7x52.3x8.2x
Thu, 10 Oct 2024US$17.4tUS$2.2tUS$378.2b30.3x46x8x
Sat, 07 Sep 2024US$15.6tUS$2.2tUS$374.5b27.2x41.7x7.2x
Mon, 05 Aug 2024US$15.6tUS$2.1tUS$363.3b29.6x42.9x7.3x
Wed, 03 Jul 2024US$17.1tUS$2.1tUS$362.9b30.7x47x8.1x
Fri, 31 May 2024US$15.1tUS$2.1tUS$351.1b29.8x43.1x7.3x
Sun, 28 Apr 2024US$14.2tUS$2.1tUS$335.6b28.4x42.3x6.9x
Tue, 26 Mar 2024US$14.9tUS$2.0tUS$328.6b27.7x45.5x7.3x
Thu, 22 Feb 2024US$14.0tUS$2.0tUS$311.6b27.1x44.9x6.9x
Sat, 20 Jan 2024US$13.9tUS$2.0tUS$292.0b26.4x47.4x6.8x
Mon, 18 Dec 2023US$13.4tUS$2.1tUS$293.6b26.5x45.5x6.5x
Wed, 15 Nov 2023US$12.3tUS$2.0tUS$280.4b24.2x43.9x6x
Fri, 13 Oct 2023US$12.0tUS$2.0tUS$270.1b24.7x44.2x5.9x
Sun, 10 Sep 2023US$12.0tUS$2.0tUS$272.9b24.3x43.8x5.9x
Tue, 08 Aug 2023US$11.9tUS$2.0tUS$262.2b25.3x45.5x5.9x
Thu, 06 Jul 2023US$12.0tUS$2.0tUS$258.1b24.7x46.3x5.9x
Sat, 03 Jun 2023US$11.5tUS$2.0tUS$264.1b24.6x43.7x5.7x
Mon, 01 May 2023US$10.3tUS$2.0tUS$265.6b20.9x38.9x5.1x
Wed, 29 Mar 2023US$9.9tUS$2.0tUS$278.2b22.3x35.7x4.9x
Price to Earnings Ratio

35.7x


Total Market Cap: US$9.9tTotal Earnings: US$278.2bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.4x202420252026
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 37.1x which is lower than its 3-year average PE of 45.4x.
  • The industry is trading close to its 3-year average PS ratio of 7.3x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 26% per year over the last three years.
  • Revenues for these companies have grown 9.8% 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-1.83%
Tech-1.68%
Communications0.41%
Tech Hardware-0.42%
IT-1.58%
Electronic Equipment and Components-1.91%
Semiconductors-1.94%
Software-2.45%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 31.7x.
    • Analysts are expecting annual earnings growth of 22.2%, which is higher than its past year's earnings growth of 17.4% per year.
  • Investors are most pessimistic about the Tech Hardware industry, which is trading close to its 3-year average of 33.0x.
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 3.1% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.7% 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
LRCX Lam ResearchUS$228.367.6%
+US$20.2b		201.1%PE45.9x
ARM Arm HoldingsUS$132.3514.3%
+US$17.6b		11.2%PE175.5x
AMD Advanced Micro DevicesUS$201.334.1%
+US$12.9b		89.1%PE76.9x
AMAT Applied MaterialsUS$357.064.5%
+US$12.3b		134.7%PE36.1x
KLAC KLAUS$1.50k5.6%
+US$10.5b		112.1%PE43.1x

Latest News

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Microsoft
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1Y
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AAPL
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APH
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1Y
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AMD
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Advanced Micro Devices
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1Y
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NVDA
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NVIDIA
7D
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1Y
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LRCX
US$228.36
Lam Research
7D
7.6%
1Y
201.1%

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The analyst price target for Lam Research has been raised modestly to reflect a slightly higher fair value estimate of about $275, with analysts pointing to a robust wafer fab equipment spending outlook, stronger DRAM and NAND memory investment expectations, and inclusion on preferred idea lists as key supports for the updated view. Analyst Commentary Recent research coverage on Lam Research has been active, with a series of price target revisions and rating changes clustered around a stronger wafer fab equipment spending backdrop, improving expectations for DRAM and NAND investment, and inclusion on preferred idea lists.
AMAT
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1Y
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KLAC
US$1,498.67
KLA
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1Y
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ARM
US$132.35
Arm Holdings
7D
14.3%
1Y
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