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U.S. Tech Sector Analysis

UpdatedJan 24, 2026
DataAggregated Company Financials
Companies988
  • 7D-1.0%
  • 3M-4.6%
  • 1Y17.8%
  • YTD-1.4%

Over the last 7 days, the Tech industry has remained flat, although notably Advanced Micro Devices gained 12%. As for the the longer term, the industry is up 18% over the past 12 months. Earnings are forecast to grow by 20% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 25 Jan 2026US$22.1tUS$2.6tUS$500.5b31.1x44.2x8.6x
Tue, 23 Dec 2025US$22.5tUS$2.6tUS$506.8b31.2x44.3x8.7x
Thu, 20 Nov 2025US$22.0tUS$2.5tUS$479.5b29.2x45.9x8.7x
Sat, 18 Oct 2025US$22.6tUS$2.5tUS$439.1b31.2x51.5x9.1x
Mon, 15 Sep 2025US$21.6tUS$2.5tUS$435.6b29.7x49.7x8.8x
Wed, 13 Aug 2025US$21.1tUS$2.4tUS$419.8b28.8x50.3x8.7x
Fri, 11 Jul 2025US$20.2tUS$2.4tUS$393.2b29.4x51.4x8.5x
Sun, 08 Jun 2025US$18.6tUS$2.4tUS$391.8b27.9x47.4x7.8x
Tue, 06 May 2025US$16.7tUS$2.3tUS$385.4b26.1x43.3x7.1x
Thu, 03 Apr 2025US$16.1tUS$2.3tUS$386.8b26.9x41.6x6.9x
Sat, 01 Mar 2025US$17.5tUS$2.3tUS$378.2b29.4x46.3x7.6x
Mon, 27 Jan 2025US$18.7tUS$2.3tUS$365.6b33.9x51.3x8.3x
Wed, 25 Dec 2024US$19.0tUS$2.3tUS$366.9b32.5x51.7x8.4x
Fri, 22 Nov 2024US$18.0tUS$2.2tUS$361.1b32.8x49.8x8x
Sun, 20 Oct 2024US$17.8tUS$2.2tUS$378.2b30.3x47x8.2x
Tue, 17 Sep 2024US$16.8tUS$2.2tUS$375.4b28.5x44.7x7.8x
Thu, 15 Aug 2024US$16.3tUS$2.1tUS$369.8b28x44.1x7.6x
Sat, 13 Jul 2024US$17.5tUS$2.1tUS$363.1b30.9x48.1x8.3x
Mon, 10 Jun 2024US$15.6tUS$2.1tUS$351.2b29.5x44.5x7.6x
Wed, 08 May 2024US$14.5tUS$2.0tUS$335.5b28.9x43.1x7.1x
Fri, 05 Apr 2024US$14.6tUS$2.0tUS$328.6b28.1x44.3x7.1x
Sun, 03 Mar 2024US$14.8tUS$2.0tUS$327.4b28.2x45.3x7.3x
Tue, 30 Jan 2024US$14.1tUS$2.0tUS$295.9b27.1x47.5x6.9x
Thu, 28 Dec 2023US$13.5tUS$2.1tUS$292.5b26.4x46x6.6x
Sat, 25 Nov 2023US$12.7tUS$2.0tUS$290.1b24.9x43.8x6.2x
Mon, 23 Oct 2023US$11.4tUS$2.0tUS$269.7b23.5x42.2x5.6x
Wed, 20 Sep 2023US$11.8tUS$2.0tUS$272.9b24.5x43.3x5.8x
Fri, 18 Aug 2023US$11.5tUS$2.0tUS$264.4b24x43.6x5.7x
Sun, 16 Jul 2023US$12.2tUS$2.0tUS$257.8b25x47.5x6x
Tue, 13 Jun 2023US$11.7tUS$2.0tUS$264.2b24.8x44.3x5.8x
Thu, 11 May 2023US$10.4tUS$2.0tUS$261.7b22.8x39.9x5.1x
Sat, 08 Apr 2023US$10.2tUS$2.0tUS$274.9b22.4x37.2x5x
Mon, 06 Mar 2023US$11.0tUS$2.3tUS$298.5b23.2x37x4.9x
Wed, 01 Feb 2023US$10.7tUS$2.3tUS$321.9b24.6x33.2x4.8x
Price to Earnings Ratio

33.2x


Total Market Cap: US$10.7tTotal Earnings: US$321.9bTotal Revenue: US$2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.1x202420252026
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 45.1x.
  • The 3-year average PS ratio of 7.2x is lower than the industry's current PS ratio of 8.6x.
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 4.4% 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-0.39%
Tech-0.96%
Communications0.53%
Software-0.16%
Semiconductors-0.52%
Electronic Equipment and Components-1.98%
Tech Hardware-2.50%
IT-4.21%
Industry PE
  • Investors are most optimistic about the Semiconductors industry, which is trading close to its 3-year average PE ratio of 52.5x.
    • Analysts are expecting annual earnings growth of 25.5%, which is higher than its past year's earnings growth of 4.4% per year.
  • Investors are most pessimistic about the Tech Hardware industry, which is trading close to its 3-year average of 32.5x.
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 4.4% 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
AMD Advanced Micro DevicesUS$259.6812.0%
+US$45.3b		111.4%PE135x
MSFT MicrosoftUS$465.951.3%
+US$45.3b		4.9%PE33x
MU Micron TechnologyUS$399.6510.2%
+US$41.5b		287.3%PE37.8x
NVDA NVIDIAUS$187.670.8%
+US$35.0b		31.6%PE46x
ARM Arm HoldingsUS$116.079.7%
+US$10.9b		-28.6%PE148.4x

Latest News

NVDA
US$187.67
NVIDIA
7D
0.8%
1Y
31.6%
INTC
US$45.07
Intel
7D
-4.0%
1Y
116.4%
ORCL
US$177.16
Oracle
7D
-7.3%
1Y
-3.5%
ANET
US$136.34
Arista Networks
7D
5.0%
1Y
5.6%

ANET: Cross Vendor AI Networking Ecosystem Will Drive Future Upside

Analysts have trimmed their price expectations for Arista Networks by a small amount, citing a still-strong AI networking ecosystem, high medium term revenue growth, slightly softer operating margins, and a valuation they view as expensive. Analyst Commentary Recent commentary on Arista Networks highlights a mix of caution on valuation and margins alongside confidence in the company’s role in AI networking.
AAPL
US$248.04
Apple
7D
-2.9%
1Y
11.3%

Maintaining FV - it's all coming true

Am maintaining my FV on this one. This video does a great job of explaining the many years of weak product innovation, which will be hard to recover from.
MSFT
US$465.95
Microsoft
7D
1.3%
1Y
4.9%

MSFT: AI Infrastructure Buildout And OpenAI Partnership Will Sustain Cloud Leadership

Microsoft's updated analyst price target edges slightly lower, with fair value now at about $622.19, as analysts balance modest tweaks to the discount rate and P/E assumptions against ongoing AI related demand signals highlighted in recent research. Analyst Commentary Recent research around Microsoft clusters into two broad camps, with most commentary still constructive on AI driven growth and cloud execution, while a smaller group is more cautious on capital intensity and hyperscaler economics.
AMD
US$259.68
Advanced Micro Devices
7D
12.0%
1Y
111.4%

AMD: AI Rack Systems And Policy Risks Will Shape The Next Phase

Analysts nudged their price target higher for Advanced Micro Devices, with fair value moving from $207.91 to $213.89 as they factor in slightly stronger expected revenue growth, a small uplift in profit margins, and a modestly higher future P/E multiple, supported by recent research highlighting AI accelerator demand, rack scale system opportunities, and broader data center traction. Analyst Commentary Recent research around AMD reflects a mix of optimism on AI growth and clear reminders that execution and competition still matter a lot for what investors are paying for the stock.
AVGO
US$320.05
Broadcom
7D
-9.0%
1Y
30.8%

AVGO: AI Custom Silicon Demand Will Drive Future Risk Reward Profile

Analysts raised their Broadcom fair value estimate from $403.66 to $456.56, reflecting expectations for higher projected revenue growth, slightly stronger profit margins, and a more moderate future P/E multiple supported by recent positive research on AI-related demand and custom silicon exposure. Analyst Commentary Recent Street research on Broadcom clusters around AI exposure, custom silicon, and the implications for valuation, margins, and long term growth execution.
NOW
US$133.11
ServiceNow
7D
4.6%
1Y
-40.8%
APP
US$524.41
AppLovin
7D
-7.8%
1Y
44.4%

APP: Heavy Buybacks And Lofty Margins Will Likely Cap Future Upside

Analysts have nudged their fair value estimate for AppLovin to $544.25, a modest move from $538.97. The change reflects refreshed assumptions around revenue growth, profit margins, discount rate and future P/E multiples.
IBM
US$292.44
International Business Machines
7D
-4.3%
1Y
30.1%

IBM: Quantum And Software Execution Will Drive Returns Through Workforce Shift

Analysts have nudged their fair value estimate for International Business Machines higher to about $302 from roughly $294, citing updated long term assumptions on revenue growth, profitability, and future P/E multiples that reflect recent price target moves and emerging views on quantum computing and software performance. Analyst Commentary Recent Street research on International Business Machines highlights a split view, with some analysts leaning into upside tied to quantum computing and recent acquisitions, while others focus on execution risks in core software and the timeline needed to support higher valuation multiples.
SHOP
US$137.89
Shopify
7D
-11.5%
1Y
28.1%

SHOP: AI Monetization And Operating Leverage Will Support Measured Upside Into 2026

Analysts have nudged our implied fair value for Shopify to about US$179.49 per share, up roughly US$4 from the prior US$175.43. This reflects Street research that highlights stronger top line potential, rising AI related monetization and operating leverage, partially offset by more cautious views on valuation, margins and already high expectations.
KLAC
US$1,512.78
KLA
7D
-3.5%
1Y
101.8%

KLAC: Higher Conviction In Leading Edge Exposure Will Drive Re Rating

The analyst fair value estimate for KLA has been lifted from US$1,075 to US$1,800, as analysts factor in stronger projected revenue growth, slightly higher profit margins, and a richer future P/E multiple supported by recent upgrades and higher price targets across the Street. Analyst Commentary Recent Street research around KLA points to a clear shift toward a more constructive stance, with several firms recalibrating their models and price targets to reflect higher conviction in the company’s execution and end market positioning.
MU
US$399.65
Micron Technology
7D
10.2%
1Y
287.3%

MU: AI Memory Supercycle Hype Will Eventually Meet New DRAM Capacity

Our fair value estimate for Micron Technology has been adjusted higher to US$176.14 from US$171.83, reflecting analysts' higher price targets and rationale around tight DRAM supply, strong AI driven memory demand, and expectations for improved margins and earnings power. Analyst Commentary Recent research has generally pointed to tight DRAM conditions, AI related memory demand, and constrained high bandwidth memory supply as key themes for Micron.
ARM
US$116.07
Arm Holdings
7D
9.7%
1Y
-28.6%

ARM: AI Licensing Royalties And Physical AI Expansion Will Drive Durable Upside

The updated analyst price target for Arm Holdings edges down by about $1.60, reflecting analysts' attempts to balance higher assumed revenue growth and margins with mixed views on the company's transition efforts and the market's willingness to support a premium P/E multiple. Analyst Commentary Recent Street research on Arm paints a mixed picture, with bullish analysts focused on earnings strength and AI exposure, and more cautious voices highlighting execution and valuation risk around the business model transition.
SNDK
US$473.83
Sandisk
7D
14.6%
1Y
n/a