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U.S. Tech Sector Analysis

UpdatedMay 21, 2026
DataAggregated Company Financials
Companies999
  • 7D0.5%
  • 3M22.5%
  • 1Y48.6%
  • YTD17.2%

Last week, the Tech industry hasn't moved much but Microsoft is up 3.9% in that time. The past year has been better, since the industry has gained 49% in that time. As for the next few years, earnings are expected to grow by 21% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 21 May 2026US$20.6tUS$2.8tUS$570.9b34.3x36.2x7.4x
Sat, 18 Apr 2026US$23.3tUS$2.7tUS$550.6b32.9x42.3x8.6x
Mon, 16 Mar 2026US$21.0tUS$2.7tUS$542.8b30.6x38.7x7.8x
Wed, 11 Feb 2026US$22.1tUS$2.6tUS$516.8b30.3x42.7x8.4x
Fri, 09 Jan 2026US$22.6tUS$2.6tUS$506.9b31.8x44.7x8.8x
Sun, 07 Dec 2025US$23.0tUS$2.6tUS$496.4b31.2x46.2x8.9x
Tue, 04 Nov 2025US$23.9tUS$2.5tUS$481.9b30.4x49.5x9.4x
Thu, 02 Oct 2025US$22.5tUS$2.5tUS$438.2b31.8x51.3x9.1x
Sat, 30 Aug 2025US$21.0tUS$2.5tUS$429.2b28.4x49x8.6x
Mon, 28 Jul 2025US$20.6tUS$2.4tUS$392.9b28.3x52.5x8.6x
Wed, 25 Jun 2025US$19.2tUS$2.4tUS$391.7b28.3x49.1x8.1x
Fri, 23 May 2025US$17.7tUS$2.4tUS$385.3b26.7x46x7.5x
Sun, 20 Apr 2025US$14.9tUS$2.3tUS$386.6b24.6x38.5x6.4x
Tue, 18 Mar 2025US$16.6tUS$2.3tUS$386.3b26.9x42.9x7.1x
Thu, 13 Feb 2025US$18.4tUS$2.3tUS$370.6b32.7x49.7x8x
Sat, 11 Jan 2025US$18.4tUS$2.3tUS$367.3b32.6x50.2x8.1x
Mon, 09 Dec 2024US$18.8tUS$2.3tUS$362.4b33.4x52x8.4x
Wed, 06 Nov 2024US$17.2tUS$2.2tUS$353.5b30.2x48.7x7.7x
Fri, 04 Oct 2024US$17.0tUS$2.2tUS$378.1b29.1x44.9x7.8x
Sun, 01 Sep 2024US$16.8tUS$2.2tUS$378.3b29.6x44.4x7.8x
Tue, 30 Jul 2024US$16.3tUS$2.1tUS$361.7b31.2x45.2x7.7x
Thu, 27 Jun 2024US$16.8tUS$2.1tUS$360.6b29.8x46.6x8x
Sat, 25 May 2024US$15.2tUS$2.1tUS$349.8b30.4x43.5x7.4x
Mon, 22 Apr 2024US$13.5tUS$2.0tUS$328.6b28x41x6.6x
Wed, 20 Mar 2024US$14.6tUS$2.0tUS$325.3b27.3x45x7.2x
Fri, 16 Feb 2024US$14.4tUS$2.0tUS$310.1b27.2x46.4x7.1x
Sun, 14 Jan 2024US$13.4tUS$2.0tUS$292.0b26x46x6.5x
Tue, 12 Dec 2023US$13.0tUS$2.1tUS$293.3b25.3x44.2x6.3x
Thu, 09 Nov 2023US$12.1tUS$2.0tUS$279.6b22.6x43.2x5.9x
Sat, 07 Oct 2023US$11.8tUS$2.0tUS$269.9b24.3x43.6x5.8x
Mon, 04 Sep 2023US$12.3tUS$2.0tUS$272.5b24.7x45x6x
Wed, 02 Aug 2023US$12.4tUS$2.0tUS$262.7b24.8x47.4x6.1x
Fri, 30 Jun 2023US$11.8tUS$2.0tUS$260.1b24.6x45.5x5.8x
Sun, 28 May 2023US$11.4tUS$2.0tUS$261.9b24.2x43.3x5.6x
Price to Earnings Ratio

43.3x


Total Market Cap: US$11.4tTotal Earnings: US$261.9bTotal 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 36.2x 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 7.5x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 30% per year over the last three years.
  • Revenues for these companies have grown 11% 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-0.32%
Tech0.52%
IT4.97%
Software4.13%
Communications2.75%
Tech Hardware0.27%
Semiconductors-1.11%
Electronic Equipment and Components-5.54%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 33.3x.
    • Analysts are expecting annual earnings growth of 26.7%, which is higher than its past year's earnings growth of 13.4% per year.
  • Investors are most pessimistic about the Semiconductors industry, which is trading below its 3-year average of 54.3x.
Forecasted Growth
  • Analysts are most optimistic on the Electronic Equipment and Components industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 13% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 11% 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
MSFT MicrosoftUS$421.063.9%
+US$117.7b		-7.0%PE25x
AAPL AppleUS$302.251.1%
+US$49.6b		49.6%PE36.2x
CSCO Cisco SystemsUS$114.3512.3%
+US$48.3b		80.9%PE37.7x
ARM Arm HoldingsUS$256.7316.1%
+US$37.8b		96.8%PE302.2x
CRWD CrowdStrike HoldingsUS$650.1115.6%
+US$22.3b		49.5%PS34.4x

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