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

Investors are pessimistic on the American Software 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 45.3x which is lower than its 3-year average PE of 51.5x. The industry is trading close to its 3-year average PS ratio of 10.7x.

Which industries have driven the changes within the U.S. Tech industry?

Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 44.8x. Analysts are expecting annual earnings growth of 28.0%, which is higher than its past year's earnings growth of 10.2% per year. Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.2x.

U.S. Software Industry Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Wed, 03 Jun 2026	US$7.0t	US$691.4b	US$155.7b	30x	45.3x	10.2x
Fri, 01 May 2026	US$5.8t	US$680.4b	US$163.2b	28.8x	35.3x	8.5x
Sun, 29 Mar 2026	US$5.2t	US$668.4b	US$161.9b	28.2x	32x	7.7x
Tue, 24 Feb 2026	US$5.5t	US$661.0b	US$163.6b	24.3x	33.6x	8.3x
Thu, 22 Jan 2026	US$6.6t	US$649.0b	US$159.9b	30.1x	41x	10.1x
Sat, 20 Dec 2025	US$7.1t	US$645.4b	US$164.7b	32.4x	42.9x	11x
Mon, 17 Nov 2025	US$7.4t	US$641.0b	US$159.9b	31.2x	46x	11.5x
Wed, 15 Oct 2025	US$7.8t	US$621.4b	US$151.7b	34.9x	51.6x	12.6x
Fri, 12 Sep 2025	US$7.6t	US$620.6b	US$151.7b	35.2x	50.3x	12.3x
Sun, 10 Aug 2025	US$7.6t	US$613.9b	US$150.0b	37.7x	50.5x	12.3x
Tue, 08 Jul 2025	US$7.4t	US$598.9b	US$131.3b	43.4x	56.4x	12.4x
Thu, 05 Jun 2025	US$6.8t	US$595.7b	US$131.6b	37.2x	51.9x	11.5x
Sat, 03 May 2025	US$6.3t	US$589.0b	US$131.0b	33.5x	48.3x	10.7x
Mon, 31 Mar 2025	US$5.7t	US$582.3b	US$130.7b	29.5x	43.7x	9.8x
Wed, 26 Feb 2025	US$6.3t	US$580.0b	US$129.5b	36.6x	48.6x	10.8x
Fri, 24 Jan 2025	US$6.7t	US$568.2b	US$129.2b	42.6x	51.9x	11.8x
Sun, 22 Dec 2024	US$6.6t	US$569.1b	US$128.8b	40.8x	51.1x	11.6x
Tue, 19 Nov 2024	US$6.3t	US$566.6b	US$127.1b	40.9x	49.9x	11.2x
Thu, 17 Oct 2024	US$6.0t	US$551.7b	US$124.1b	38.7x	48.7x	11x
Sat, 14 Sep 2024	US$6.0t	US$552.4b	US$124.0b	38.6x	48x	10.8x
Mon, 12 Aug 2024	US$5.6t	US$548.6b	US$121.5b	34.7x	46.1x	10.2x
Wed, 10 Jul 2024	US$6.1t	US$530.5b	US$118.1b	40.1x	52x	11.6x
Fri, 07 Jun 2024	US$5.2t	US$476.6b	US$107.1b	40.2x	48.8x	11x
Sun, 05 May 2024	US$5.2t	US$476.8b	US$103.2b	42.3x	50.1x	10.8x
Tue, 02 Apr 2024	US$5.4t	US$465.9b	US$98.3b	45.2x	54.9x	11.6x
Thu, 29 Feb 2024	US$5.3t	US$466.6b	US$95.1b	42.8x	56.1x	11.4x
Sat, 27 Jan 2024	US$5.5t	US$486.8b	US$82.4b	47.4x	66.2x	11.2x
Mon, 25 Dec 2023	US$5.2t	US$486.1b	US$82.9b	44.5x	62.4x	10.6x
Wed, 22 Nov 2023	US$4.9t	US$482.4b	US$79.9b	45.4x	61.5x	10.2x
Fri, 20 Oct 2023	US$4.5t	US$477.3b	US$73.7b	42.5x	61.4x	9.5x
Sun, 17 Sep 2023	US$4.6t	US$480.1b	US$73.0b	45.2x	62.5x	9.5x
Tue, 15 Aug 2023	US$4.5t	US$473.1b	US$70.1b	45.3x	63.7x	9.4x
Thu, 13 Jul 2023	US$4.5t	US$460.7b	US$60.1b	49.2x	75.5x	9.9x
Sat, 10 Jun 2023	US$4.3t	US$460.1b	US$62.1b	43.1x	69.8x	9.4x


US Market	1.22%
Tech	6.93%
Software	9.93%
Systems Software	10.12%
Application Software	9.48%

Company	Last Price	7D	1Y	Valuation
MSFT Microsoft	US$441.31	6.1% +US$187.8b	-4.7%	PE26.2x
ORCL Oracle	US$244.58	26.7% +US$148.2b	44.6%	PE43.5x
PLTR Palantir Technologies	US$152.17	11.4% +US$37.3b	14.3%	PE159.9x
PANW Palo Alto Networks	US$297.18	15.7% +US$32.8b	50.8%	PE188x
APP AppLovin	US$605.63	17.8% +US$30.7b	52.0%	PE52x

Announcement • 7h

NVIDIA Corporation and Microsoft Reinvent Windows PCs for the Age of Personal AI

NVIDIA Corporation unveiled NVIDIA RTX Spark™, a new superchip that reinvents Windows PCs for the era of personal AI agents — offering a new class of computer that moves from tool to teammate. Designed for AI, creating and gaming, RTX Spark brings together 30 years of NVIDIA innovation — including NVIDIA CUDA®, NVIDIA RTX™, DLSS, FP4, NVIDIA TensorRT™, NVIDIA OptiX™, Reflex and G-SYNC® — to slim Windows laptops with all-day battery life and small, ultraefficient desktop PCs. The RTX Spark superchip features an NVIDIA Blackwell RTX GPU with 6,144 CUDA cores and fifth-generation Tensor Cores with FP4 precision, connected via the NVIDIA NVLink®-C2C chip-to-chip interconnect to a high-performance, 20-core NVIDIA Grace™ CPU. MediaTek, a market leader in Arm-based system-on-a-chip designs, collaborated with NVIDIA on the custom CPU design, contributing to its best-in-class power efficiency, performance and connectivity. AI agents have reached an inflection point, with open source projects such as OpenClaw and Hermes Agent achieving record-breaking numbers on developer networks like GitHub and OpenRouter. Yet broad adoption has been limited by the inability to run agents securely and privately on users’ primary PCs. NVIDIA and Microsoft are partnering to address this challenge by delivering a robust, secure Windows platform for on-device agents. The collaboration begins with a strong foundation — new Windows security primitives and the NVIDIA OpenShell™ runtime — to ensure agents run safely and under full user control. The new Windows primitives deliver identity, containment, policy and end-to-end security capabilities to build and run agents natively. NVIDIA OpenShell provides additional policy capabilities for the user to define what agents can and cannot do, the ability to intelligently route queries to local models based on the user’s privacy policies, and the ability to disguise personal information in queries sent to cloud models. This robust security and privacy layer is being adopted by leading agent developers such as Hermes Agent and OpenClaw in their new Windows apps. These new apps will make it easy and secure for users to access powerful on-device agents that can execute tasks in Windows applications, reason through cross-app workflows, generate images and video, code plug-ins and apps, and semantically search local files. Powering agents on local devices requires both robust security and performant hardware. RTX Spark features up to 1 petaflop of AI compute and 128GB of unified memory to meet the processing demands of on-device agents. Full-Stack RTX Creating and Gaming: RTX Spark delivers the full NVIDIA AI and graphics technology stack to creators, AI developers and gamers.Users can render ultralarge 90GB 3D scenes with OptiX and DLSS, edit 12K 4:2:2 video with the NVIDIA Blackwell decoder, run 120-billion-parameter large language models with 1 million tokens context, and play AAA games at 1440p resolution and over 100 frames per second with ray tracing, DLSS and Reflex. In addition to support for existing technologies, RTX Spark will power new RTX capabilities, including DLSS 4.5 Ray Reconstruction featuring a second-generation transformer model — coming to Blender 5.3 and dozens of games — and RTX Video with 4x Frame Generation, coming to ComfyUI.RTX technology boosts performance, enhances image quality and adds powerful AI features in over 1,000 games and applications. Over 100 Windows software providers such as Adobe, Blackmagic Design, Blender, CapCut, ComfyUI and OTOY, and game developers such as KRAFTON, NetEase, Remedy Entertainment, Riot Games and XBOX are embracing the new RTX Spark platform. Delivering Powerful Creative Experiences: NVIDIA is partnering with Adobe to rearchitect Adobe Premiere and Photoshop for RTX Spark. Firefly-powered Generative Fill in Photoshop and Generative Extend in Premiere are among the hundreds of accelerated tools that deliver creative power, precision and control. RTX Spark takes these capabilities further, delivering up to 2x faster AI, editing, coloring and effects across creative workflows. Adobe Premiere will feature a new video pipeline that taps into RTX Spark’s unified memory, Blackwell GPU and TensorRT software, delivering real-time performance for editing and color correction, GPU-accelerated AI performance and more efficient rendering of complex timelines. In addition, Adobe’s Substance 3D Painter and Stager will run natively on RTX Spark for smoother and more responsive 3D texturing and scene creation workflows. Adobe’s next-generation Photoshop engine will be optimized for GPU-accelerated compositing, enabling live filters, high dynamic range and modern natural brushing. The AI-native pipeline is built to harness the full power of RTX Spark, including TensorRT. Adobe will further extend Premiere and Photoshop to allow users to create, edit and design with Windows agents, providing creators with a collaborative teammate to accelerate their workflows. Updates to Adobe’s creative apps like Premiere, Photoshop and Substance are expected to start rolling out alongside RTX Spark availability. Premium Designs in All Sizes: Engineered to be as slim as 14 millimeters and as light as three pounds, RTX Spark laptops will be available in 14- to 16-inch sizes and feature precision-machined aluminum chassis that blends durability with a clean, modern design. Color-accurate tandem OLED displays with NVIDIA G-SYNC technology provide stunning visuals for creative work and immersive gaming.Small, ultraefficient RTX Spark desktops are built for agents, creative workloads, gaming and everyday productivity. Major hardware makers are rallying around RTX Spark, with many designs already in development. NVIDIA and Microsoft’s collaboration to deliver agents in the Windows experience extends from personal to frontier agents with NVIDIA DGX Station™ for Windows — scaling the Blackwell architecture to enterprise developers by putting an AI supercomputer for running agents deskside.

Announcement • May 28

CrowdStrike Announces Next Evolution of Project QuiltWorks, Extending Industry Framework from Securing Frontier AI Risk to Mitigating Financial Exposure

CrowdStrike announced the next evolution of Project QuiltWorks, extending the industry framework from securing frontier AI risk to mitigating financial exposure. As frontier AI accelerates vulnerability discovery and compresses exploitation timelines, leaders from the cyber insurance industry – Coalition, Liberty Mutual Insurance, Lockton, Resilience, and Marsh – bring actuarial intelligence, underwriting expertise, and financial protection to the framework. QuiltWorks is the industry's first model that spans technical discovery and prioritization, expert remediation, and financial mitigation – giving organizations and their boards a complete picture of frontier AI exposure and a coordinated framework to act on it. Frontier AI is reshaping the economics of cyber risk, accelerating vulnerability discovery, compressing exploitation timelines, and expanding organizations' financial exposure to attacks. Insurers are raising the bar, and, through Project QuiltWorks, helping organizations build the security controls, visibility, and remediation frameworks they need to obtain and maintain coverage. Powered by frontier models from OpenAI and Anthropic, Project QuiltWorks combines CrowdStrike’s AI-driven vulnerability discovery and adversary-informed prioritization with remediation services from the world’s top systems integrators. With the addition of leading cyber insurers and brokers, the framework extends beyond technical risk reduction to financial risk modeling, underwriting intelligence, and coordinated financial mitigation. The result is a coordinated model that gives insurers the confidence to underwrite frontier AI risk and organizations the protection to mitigate it. Financial Risk Modeling: Actuarial expertise and insurer risk intelligence helps organizations – and their boards – gain a precise measure of their financial exposure to frontier AI risk. Exposure Prioritization: Adversary intelligence, vulnerability telemetry, and underwriting insights combine to prioritize the exposures most likely to drive operational and financial loss – going beyond CVSS scores to what adversaries and insurers both know matters most. Underwriting Confidence: Continuous visibility into risk exposure and proven remediation frameworks give insurers the intelligence to confidently underwrite frontier AI risk, and organizations a clear path to obtaining and maintaining the coverage their business demands. Coordinated Risk Mitigation: CrowdStrike, insurers, and ecosystem partners create a continuous feedback loop – combining AI-driven vulnerability discovery, adversary intelligence, expert-led remediation, and claims data – to identify, prioritize, remediate, and financially mitigate frontier AI risk at scale. CrowdStrike Project QuiltWorks is now available.

U.S. Software Industry Analysis

Industry Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

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