U.S. IT Industry Analysis

Industry Valuation and Performance

Has the U.S. IT Industry valuation changed over the past few years?

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Fri, 26 Jun 2026	US$872.5b	US$260.6b	US$20.2b	16.1x	43.1x	3.3x
Sun, 24 May 2026	US$872.1b	US$258.8b	US$20.3b	20.8x	43.1x	3.4x
Tue, 21 Apr 2026	US$888.6b	US$259.8b	US$21.6b	22.3x	41.2x	3.4x
Thu, 19 Mar 2026	US$879.7b	US$258.2b	US$21.5b	19x	40.9x	3.4x
Sat, 14 Feb 2026	US$883.0b	US$256.5b	US$21.7b	23.2x	40.6x	3.4x
Mon, 12 Jan 2026	US$1.1t	US$282.8b	US$21.0b	30.9x	52.2x	3.9x
Wed, 10 Dec 2025	US$1.1t	US$282.0b	US$21.0b	30.9x	52.2x	3.9x
Fri, 07 Nov 2025	US$1.1t	US$280.3b	US$20.1b	31.2x	55.3x	4x
Sun, 05 Oct 2025	US$1.1t	US$283.3b	US$20.1b	33.2x	54.5x	3.9x
Tue, 02 Sep 2025	US$988.2b	US$250.9b	US$19.3b	32.7x	51.2x	3.9x
Thu, 31 Jul 2025	US$971.9b	US$242.9b	US$17.7b	26.7x	54.9x	4x
Sat, 28 Jun 2025	US$1.0t	US$241.7b	US$17.4b	28.9x	58.3x	4.2x
Mon, 26 May 2025	US$930.5b	US$240.2b	US$16.9b	29x	54.9x	3.9x
Wed, 23 Apr 2025	US$786.6b	US$242.3b	US$18.5b	32.6x	42.5x	3.2x
Fri, 21 Mar 2025	US$888.3b	US$240.9b	US$19.2b	43.9x	46.2x	3.7x
Sun, 16 Feb 2025	US$1.0t	US$239.4b	US$18.2b	44.8x	57x	4.3x
Tue, 14 Jan 2025	US$855.5b	US$234.0b	US$16.5b	37.4x	52x	3.7x
Thu, 12 Dec 2024	US$899.4b	US$233.3b	US$16.4b	45x	54.9x	3.9x
Sat, 09 Nov 2024	US$820.1b	US$233.2b	US$16.1b	46.9x	50.9x	3.5x
Mon, 07 Oct 2024	US$806.1b	US$232.9b	US$17.8b	43.3x	45.4x	3.5x
Wed, 04 Sep 2024	US$761.2b	US$233.2b	US$17.5b	38.4x	43.4x	3.3x
Fri, 02 Aug 2024	US$751.2b	US$236.7b	US$17.7b	29.2x	42.5x	3.2x
Sun, 30 Jun 2024	US$710.2b	US$237.1b	US$17.2b	27.9x	41.3x	3x
Tue, 28 May 2024	US$707.2b	US$237.0b	US$17.2b	28.2x	41x	3x
Thu, 25 Apr 2024	US$734.3b	US$227.8b	US$13.7b	24.2x	53.4x	3.2x
Sat, 23 Mar 2024	US$776.8b	US$227.6b	US$14.6b	22.3x	53.3x	3.4x
Mon, 19 Feb 2024	US$831.3b	US$227.5b	US$14.2b	23.4x	58.5x	3.7x
Wed, 17 Jan 2024	US$799.2b	US$229.4b	US$12.9b	21x	61.8x	3.5x
Fri, 15 Dec 2023	US$778.2b	US$229.0b	US$12.8b	20.3x	60.8x	3.4x
Sun, 12 Nov 2023	US$685.6b	US$228.4b	US$12.6b	20.9x	54.2x	3x
Tue, 10 Oct 2023	US$670.6b	US$227.2b	US$6.5b	22.4x	103.7x	3x
Thu, 07 Sep 2023	US$706.9b	US$226.6b	US$6.8b	23.1x	103.9x	3.1x
Sat, 05 Aug 2023	US$680.8b	US$226.3b	US$6.4b	24x	106.1x	3x
Mon, 03 Jul 2023	US$679.5b	US$228.6b	US$6.1b	23.6x	111.5x	3x

Current Industry PE

Investors are pessimistic on the American IT 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 43.1x which is lower than its 3-year average PE of 56.3x.

The industry is trading close to its 3-year average PS ratio of 3.5x.

Past Earnings Growth

The earnings for companies in the IT industry have grown 49% per year over the last three years.
Revenues for these companies have grown 4.5% 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 industry?


US Market	-2.68%
Tech	-5.04%
IT	-1.55%
IT Consulting	1.21%
Data Processing Services	-2.66%
Internet Services and Infrastructure	-3.48%

Industry PE

Investors are most optimistic about the Data Processing Services industry, which is trading close to its 3-year average PE ratio of 27.7x.

Analysts are expecting annual earnings growth of 13.1%, which is lower than the prior year's growth of 25.8% per year.

Forecasted Growth

Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 35% over the next 5 years.
However this is lower than its past earnings growth rate of 88% per year.

In contrast, the IT Consulting industry is expected to see its earnings grow by 7.7% 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
IBM International Business Machines	US$258.27	3.7% +US$8.6b	-11.5%	PE22.6x
SHOP Shopify	US$111.62	2.5% +US$3.6b	-1.3%	PE109x
NET Cloudflare	US$226.65	1.2% +US$915.5m	18.7%	PS34.4x
TWLO Twilio	US$190.88	2.5% +US$714.9m	57.2%	PE278.7x
BLZE Backblaze	US$13.42	63.9% +US$313.9m	145.3%	PS5.4x

IBM Unveils World's First Sub-1 Nanometer Chip Technology Featuring Nanostack 3D Architecture

IBM unveiled a major semiconductor breakthrough with the introduction of the world's first sub-1 nanometer (nm) chip technology, featuring a revolutionary transistor architecture at the 0.7 nm, or 7 angstrom node. IBM's new sub-1 nm chip packs nearly 100 billion transistors onto a chip the size of a fingernail, nearly twice the density of IBM's 2 nm chip, unveiled in 2021. Enabled by a series of structural and material innovations, including IBM's groundbreaking three-dimensional nanostack architecture, the technology demonstrates how continued gains in performance and efficiency remain possible even as chip features approach atomic dimensions. Published technical results report the new chip is projected to offer a substantial leap in capability—up to 50% more performance, or 70% greater energy efficiency than IBM's 2 nm node chips—supercharging compute for applications ranging from generative AI and cloud infrastructure to next-generation electronic devices. To produce this chip, IBM researchers developed an entirely new transistor architecture, called 'nanostack,' the industry's first known three-dimensional, nanosheet-based design. Nanostack represents a major advance beyond nanosheet technology, the industry's current leading-edge architecture, invented by IBM. The nanostack design vertically stacks and staggers transistors, taking advantage of 3D sequential integration to pack more transistors onto a chip. The design also unlocks the use of different material combinations within each stacked layer, optimizing performance and power efficiency of each transistor independent of the other. IBM's nanostack architecture was experimentally validated through ultra-thin dielectric bonding in CMOS integration, demonstration of dual-channel engineering capability, and functional CMOS inverter operation with expected switching performance. Together, these results confirm the nanostack technology can be physically built and supports real computation. In new research presented at VLSI 2026, IBM researchers demonstrated that the nanostack architecture provides 40% scaling in SRAM, unlocking the ability of chip designers to create much more efficient chips while also supporting the high-bandwidth data demands of advanced AI workloads. With this groundbreaking structure, logic technology can extend for the first time below the 1 nm node, advancing the era of angstrom-level scaling, where dimensions approach the size of individual atoms. While transistor nodes now refer to a generation of manufacturing technology versus an exact physical dimension, IBM's 0.7 nm technology—also referred to as 7 angstroms—demonstrates how continued scaling remains possible. With the new nanostack architecture, IBM's semiconductor roadmap projects at least a decade of future scaling. IBM and its partners conduct this work at a semiconductor research facility in Albany, New York, which will soon be home to a High Numerical Aperture Extreme Ultraviolet (High NA EUV) lithography tool, essential for the future of logic scaling. Developed by ASML, this technology enables ultra-precise circuit printing, supporting the creation of smaller, more powerful chips. IBM and partners including Lam Research Corp., Tokyo Electron (TEL), and SCREEN Semiconductor Solutions Ltd. have been working together to develop new High NA EUV processes and tools that have already yielded working devices. IBM also recently announced a plan to form Anderon, the world's first pure-play quantum foundry. Anderon, a standalone IBM company, will draw on IBM's quantum computing and semiconductor expertise to help position the United States to manufacture most of the world's quantum wafers. With the expectation of the earliest adoption of nanostack technology at the sub-1 nm node, IBM sees a path to production in as early as the next 5 years.

U.S. IT Industry Analysis

Industry Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

IBM Unveils World's First Sub-1 Nanometer Chip Technology Featuring Nanostack 3D Architecture

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High number of new and inexperienced directors