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U.S. Tech Sector Analysis

UpdatedMar 24, 2026
DataAggregated Company Financials
Companies978
  • 7D-1.6%
  • 3M-8.1%
  • 1Y23.8%
  • YTD-7.0%

Over the last 7 days, the Tech industry has dropped 1.6%, driven by NVIDIA declining 3.5%. On the other hand Lam Research is actually up 6.3%. Over the past 12 months, the industry was up 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
Tue, 24 Mar 2026US$20.7tUS$2.7tUS$555.4b31x37.3x7.7x
Thu, 19 Feb 2026US$21.4tUS$2.6tUS$520.4b29.5x41.2x8.2x
Sat, 17 Jan 2026US$22.3tUS$2.6tUS$500.6b31.7x44.6x8.7x
Mon, 15 Dec 2025US$22.4tUS$2.6tUS$503.6b31.1x44.6x8.7x
Wed, 12 Nov 2025US$23.4tUS$2.5tUS$477.9b29.5x48.9x9.2x
Fri, 10 Oct 2025US$23.2tUS$2.5tUS$439.1b32.4x52.9x9.3x
Sun, 07 Sep 2025US$20.8tUS$2.5tUS$435.1b29.2x47.9x8.5x
Tue, 05 Aug 2025US$20.3tUS$2.4tUS$413.5b27.9x49.1x8.4x
Thu, 03 Jul 2025US$19.5tUS$2.4tUS$393.1b28.8x49.7x8.2x
Sat, 31 May 2025US$18.0tUS$2.4tUS$390.3b27x46.1x7.6x
Mon, 28 Apr 2025US$16.1tUS$2.3tUS$386.0b25.9x41.7x6.9x
Wed, 26 Mar 2025US$16.9tUS$2.3tUS$386.7b26.8x43.7x7.3x
Fri, 21 Feb 2025US$19.0tUS$2.3tUS$369.5b31.2x51.3x8.3x
Sun, 19 Jan 2025US$18.4tUS$2.3tUS$367.0b33.9x50x8.1x
Tue, 17 Dec 2024US$18.8tUS$2.3tUS$363.6b32.1x51.6x8.3x
Thu, 14 Nov 2024US$18.2tUS$2.2tUS$352.6b32.9x51.7x8.2x
Sat, 12 Oct 2024US$17.6tUS$2.2tUS$378.2b30.4x46.5x8.1x
Mon, 09 Sep 2024US$15.6tUS$2.2tUS$374.5b27.2x41.7x7.2x
Wed, 07 Aug 2024US$15.1tUS$2.1tUS$362.4b28.7x41.6x7.1x
Fri, 05 Jul 2024US$17.4tUS$2.1tUS$362.9b30.8x47.9x8.2x
Sun, 02 Jun 2024US$15.1tUS$2.1tUS$351.1b29.5x43x7.3x
Tue, 30 Apr 2024US$14.2tUS$2.1tUS$335.6b28.5x42.3x6.9x
Thu, 28 Mar 2024US$14.8tUS$2.0tUS$328.2b28.1x45.1x7.2x
Sat, 24 Feb 2024US$14.4tUS$2.0tUS$322.2b27.5x44.8x7.1x
Mon, 22 Jan 2024US$14.0tUS$2.0tUS$292.0b26.5x47.8x6.8x
Wed, 20 Dec 2023US$13.4tUS$2.1tUS$293.6b25.9x45.8x6.5x
Fri, 17 Nov 2023US$12.6tUS$2.0tUS$281.3b24.1x44.9x6.2x
Sun, 15 Oct 2023US$11.7tUS$2.0tUS$270.2b24.8x43.5x5.8x
Tue, 12 Sep 2023US$12.0tUS$2.0tUS$272.9b23.6x44.1x5.9x
Thu, 10 Aug 2023US$11.6tUS$2.0tUS$262.9b25.6x44.3x5.7x
Sat, 08 Jul 2023US$11.9tUS$2.0tUS$258.1b24.5x46x5.9x
Mon, 05 Jun 2023US$11.5tUS$2.0tUS$264.1b24.7x43.7x5.7x
Wed, 03 May 2023US$10.2tUS$2.0tUS$264.2b20.7x38.6x5x
Fri, 31 Mar 2023US$10.3tUS$2.0tUS$274.8b22.9x37.3x5x
Price to Earnings Ratio

37.3x


Total Market Cap: US$10.3tTotal Earnings: US$274.8bTotal 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 37.3x 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 9.9% 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-1.74%
Tech-1.56%
Communications1.76%
IT-0.22%
Electronic Equipment and Components-0.39%
Tech Hardware-0.56%
Semiconductors-1.94%
Software-2.43%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 31.8x.
    • 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$233.316.3%
+US$17.4b		199.2%PE46.9x
ARM Arm HoldingsUS$136.8912.5%
+US$16.1b		9.6%PE181.5x
PLTR Palantir TechnologiesUS$160.843.7%
+US$13.8b		66.7%PE236.7x
AMAT Applied MaterialsUS$361.794.5%
+US$12.4b		133.5%PE36.6x
AMD Advanced Micro DevicesUS$202.683.1%
+US$9.9b		78.0%PE77.4x

Latest News

LITE
US$728.95
Lumentum Holdings
7D
16.7%
1Y
890.0%
MSFT
US$383.00
Microsoft
7D
-4.1%
1Y
-3.1%
NVDA
US$175.64
NVIDIA
7D
-3.5%
1Y
45.5%

NVDA: Trillion Dollar AI Backlog Will Support Multi-Year Infrastructure Supercycle

The analyst fair value estimate for Nvidia has been raised from $253.02 to $269.23. Analysts cite higher modeled revenue growth, continued AI data center demand, and expanding use cases beyond data centers as key factors supporting a lower future P/E assumption and the higher price target.
MU
US$404.35
Micron Technology
7D
-12.4%
1Y
329.3%
ARM
US$136.89
Arm Holdings
7D
12.5%
1Y
9.6%

ARM: AI CPU Inference And PC Design Wins Will Drive Future Upside

Analysts have trimmed the fair value estimate for Arm Holdings by $10 to $205, reflecting slightly softer modeled revenue growth and profit margins, even as recent research highlights ongoing AI driven CPU opportunities and a mix of upgraded and lowered Street price targets. Analyst Commentary Recent research on Arm shows a mix of higher and lower price targets, but several bullish analysts are highlighting AI as a key driver for the story, especially around CPU demand in data centers and inference workloads.
AVGO
US$322.51
Broadcom
7D
-0.7%
1Y
68.6%
CIEN
US$407.90
Ciena
7D
12.1%
1Y
486.7%

Ciena Corporation (CIEN): The Optical Backbone of the AI Revolution

Ciena Corporation (CIEN) is currently one of the most explosive stories in the networking sector, closing the March 18, 2026, session at $385.26 USD , a robust 4.11% daily gain. The stock has been on a tear, surging over 73% in the last three months as it effectively "outperforms" many of its hardware peers in the early 2026 trading cycle.
AAPL
US$251.49
Apple
7D
-0.5%
1Y
13.9%
APH
US$130.67
Amphenol
7D
-4.5%
1Y
88.6%

APH: AI Data Center Content And CCS Acquisition Will Support Future Margins

Analysts now set a slightly adjusted price target for Amphenol, with modest tweaks to the discount rate and long-term P/E assumptions, at around $165. This target is supported by recent research citing AI data center content, the CommScope Connectivity and Cable Solutions acquisition, and clearer visibility on the copper versus optics roadmap as key drivers in their updated views.
PLTR
US$160.84
Palantir Technologies
7D
3.7%
1Y
66.7%

My take on Palantir

For me, the story behind this company is the following. I read Alex Carpe's book, The Philosopher in the Valley, and I loved how structured and driven he was.
AMD
US$202.68
Advanced Micro Devices
7D
3.1%
1Y
78.0%

AMD: Expanded Meta And OpenAI AI Agreements Will Support Future Upside

Analysts have lifted the fair value estimate for AMD by about $6 to $289.61. This reflects updated assumptions around higher profit margins, slightly stronger revenue growth, a lower future P/E multiple, and recent Street research highlighting expanded GPU partnerships with Meta, OpenAI, and large customers across data center and AI workloads.
LRCX
US$233.31
Lam Research
7D
6.3%
1Y
199.2%

LRCX: AI Memory Spending Upturn Will Support WFE Cycle Reacceleration

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
US$361.79
Applied Materials
7D
4.5%
1Y
133.5%
SHOP
US$121.10
Shopify
7D
-4.3%
1Y
10.8%

SHOP: Agentic Commerce Optimism Will Face Test As Expectations Stay Elevated

Shopify's analyst fair value estimate has been modestly adjusted from $111.12 to $110.00 as analysts factor in updated assumptions around discount rates, revenue growth, profit margins, and a slightly lower future P/E. Recent research highlights both rising price targets from bulls focused on AI and agentic commerce potential, and reductions from others citing valuation reset and sector multiple compression.
INTC
US$44.01
Intel
7D
-3.8%
1Y
81.7%

Intel Corp (INTC): The 18A Node Pivot and the "Foundry First" Transformation

Intel (INTC) concluded the March 16, 2026, trading session at $45.74 USD on the NASDAQ, ending the day with a 0.30% gain amid a volatile session that saw an intraday high of $49.17. Since your last update on March 1st, the stock has experienced significant "choppiness" as investors digest the launch of the Core Ultra 200S Plus series and wait for supply constraints to ease.
KLAC
US$1,511.43
KLA
7D
5.1%
1Y
107.7%

KLAC: AI And DRAM Spending Cycles Will Support Stronger Long Term Outlook

The analyst price target for KLA has been revised higher, with the updated fair value estimate moving from about $1,297 to roughly $1,676 as analysts factor in stronger long term revenue growth, higher profit margin assumptions and KLA's more constructive Investor Day outlook, while views on the appropriate discount rate and future P/E multiple remain fairly similar. Analyst Commentary Recent research has centered on KLA's updated long term framework, higher 2030 financial targets and a reassessment of wafer fab equipment spending, with most firms adjusting price targets and rating views around those themes.