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U.S. Tech Sector Analysis

UpdatedJul 07, 2026
DataAggregated Company Financials
Companies1001
  • 7D-0.3%
  • 3M26.1%
  • 1Y32.8%
  • YTD17.9%

The Tech is pretty flat in the last 7 days, but Apple has stood out, gaining 11%. The past year has been better, since the industry has gained 33% in that time. As for the next few years, earnings are expected to grow by 22% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 07 Jul 2026US$26.4tUS$2.9tUS$645.1b33.9x40.9x9.1x
Thu, 04 Jun 2026US$23.7tUS$2.8tUS$613.1b36.1x38.7x8.4x
Sat, 02 May 2026US$24.3tUS$2.8tUS$572.3b33.2x42.4x8.8x
Mon, 30 Mar 2026US$19.9tUS$2.7tUS$555.1b29.1x35.9x7.4x
Wed, 25 Feb 2026US$21.4tUS$2.6tUS$519.6b30.1x41.2x8.1x
Fri, 23 Jan 2026US$22.0tUS$2.6tUS$500.9b31.9x44x8.6x
Sun, 21 Dec 2025US$22.5tUS$2.6tUS$506.9b30.9x44.4x8.7x
Tue, 18 Nov 2025US$22.6tUS$2.5tUS$479.5b29.7x47.2x8.9x
Thu, 16 Oct 2025US$22.4tUS$2.5tUS$439.1b32.5x51.1x9x
Sat, 13 Sep 2025US$21.7tUS$2.5tUS$435.6b29.7x49.8x8.8x
Mon, 11 Aug 2025US$21.2tUS$2.4tUS$417.0b28x50.8x8.7x
Wed, 09 Jul 2025US$19.9tUS$2.4tUS$393.2b29.5x50.7x8.4x
Fri, 06 Jun 2025US$18.4tUS$2.4tUS$388.9b27.6x47.3x7.7x
Sun, 04 May 2025US$16.7tUS$2.3tUS$386.4b26.4x43.2x7.1x
Tue, 01 Apr 2025US$15.9tUS$2.3tUS$385.6b26.7x41.3x6.8x
Thu, 27 Feb 2025US$17.8tUS$2.3tUS$368.6b30.2x48.4x7.7x
Sat, 25 Jan 2025US$18.9tUS$2.3tUS$365.6b33.9x51.8x8.4x
Mon, 23 Dec 2024US$18.6tUS$2.3tUS$366.9b31.5x50.6x8.2x
Wed, 20 Nov 2024US$17.8tUS$2.2tUS$351.2b32x50.6x8x
Fri, 18 Oct 2024US$17.6tUS$2.2tUS$378.1b31x46.7x8.1x
Sun, 15 Sep 2024US$16.8tUS$2.2tUS$375.4b28.3x44.7x7.8x
Tue, 13 Aug 2024US$15.8tUS$2.1tUS$369.7b27.2x42.7x7.4x
Thu, 11 Jul 2024US$17.6tUS$2.1tUS$362.9b30x48.5x8.3x
Sat, 08 Jun 2024US$15.6tUS$2.1tUS$351.2b29.5x44.5x7.6x
Mon, 06 May 2024US$14.3tUS$2.0tUS$336.2b28.2x42.7x7x
Wed, 03 Apr 2024US$14.8tUS$2.0tUS$328.6b28.3x45x7.2x
Fri, 01 Mar 2024US$14.4tUS$2.0tUS$327.2b27.7x44.2x7.1x
Sun, 28 Jan 2024US$14.1tUS$2.0tUS$295.9b27x47.5x6.9x
Tue, 26 Dec 2023US$13.4tUS$2.1tUS$292.5b25.9x45.8x6.5x
Thu, 23 Nov 2023US$12.8tUS$2.0tUS$281.5b24.8x45.4x6.3x
Sat, 21 Oct 2023US$11.4tUS$2.0tUS$269.7b23.5x42.2x5.6x
Mon, 18 Sep 2023US$11.8tUS$2.0tUS$272.9b23.9x43.2x5.8x
Wed, 16 Aug 2023US$11.6tUS$2.0tUS$263.5b24.7x44.2x5.7x
Fri, 14 Jul 2023US$12.3tUS$2.0tUS$257.8b25.6x47.6x6.1x
Price to Earnings Ratio

47.6x


Total Market Cap: US$12.3tTotal Earnings: US$257.8bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.2x202420252026
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 40.9x which is lower than its 3-year average PE of 45.2x.
  • The 3-year average PS ratio of 7.6x is lower than the industry's current PS ratio of 9.1x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 36% per year over the last three years.
  • Revenues for these companies have grown 12% 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 Market0.79%
Tech-0.31%
Tech Hardware7.20%
Software4.74%
IT4.40%
Communications-2.15%
Semiconductors-4.88%
Electronic Equipment and Components-9.16%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 34.5x.
    • Analysts are expecting annual earnings growth of 26.9%, which is higher than its past year's earnings growth of 10.1% per year.
  • Investors are most pessimistic about the Software industry, which is trading below its 3-year average of 50.5x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 23% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 12% 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
AAPL AppleUS$312.6611.0%
+US$454.1b		48.9%PE37.5x
MSFT MicrosoftUS$386.744.9%
+US$135.0b		-22.3%PE22.9x
PLTR Palantir TechnologiesUS$132.5414.6%
+US$40.4b		-4.7%PE139.3x
PANW Palo Alto NetworksUS$357.537.7%
+US$20.8b		77.5%PE345.7x
AMD Advanced Micro DevicesUS$552.052.3%
+US$20.5b		309.5%PE182.5x

Latest News

NVDA
US$195.55
NVIDIA
7D
-2.3%
1Y
22.2%
PANW
US$357.53
Palo Alto Networks
7D
7.7%
1Y
77.5%
Seeking Alpha • 9h

Palo Alto Networks: The Valuation Re-Rating Has Gone Too Far

Summary Palo Alto Networks is strategically positioned for the agentic AI era, leveraging both organic innovation and targeted acquisitions. Q3 results showed solid but unspectacular demand, with 14% organic revenue growth and 28% organic NGS ARR growth, but margins remain under pressure. Despite strong long-term AI cybersecurity tailwinds, near-term financial guidance and demand metrics do not indicate accelerating momentum. Valuation is extremely stretched, with Palo Alto Networks trading at a 275% forward P/E premium to the IT sector; I reiterate my sell rating. Read the full article on Seeking Alpha
KLAC
US$233.31
KLA
7D
-16.2%
1Y
155.6%
SNDK
US$1,744.43
Sandisk
7D
-14.9%
1Y
3,757.7%
Seeking Alpha • 20h

Sandisk: Why The Run-Up May Not Be Over

Summary I see Sandisk Corporation as still offering upside, driven by robust AI datacenter buildout and favorable long-term contracts. SNDK benefits from geopolitical tailwinds, hyperscaler demand, and innovations like high-bandwidth flash that could de-commoditize NAND. Bear risks remain: cyclicality, potential global NAND oversupply, and Apple possibly legitimizing Chinese DRAM suppliers. Given high implied volatility, a short put strategy appears attractive for SNDK exposure, with wild price swings likely in the near to medium term. Read the full article on Seeking Alpha
MSFT
US$386.74
Microsoft
7D
4.9%
1Y
-22.3%
Seeking Alpha • 22h

Microsoft Q4 Preview: Azure And AI Investments Focal Points As Shares Lag Behind

Summary Ahead of Microsoft Corporation’s Q4 results, shares are underperforming, with monthly losses of about 6.5%. The stock is also sitting near the bottom end of its 52-week range. The losses come as many investors continue to question whether the company’s AI investments can produce the desired results. MSFT has also announced that it will cut over 3,000 jobs in its Xbox division. I view shares as a Hold ahead of the Q4 release. Read the full article on Seeking Alpha
AAPL
US$312.66
Apple
7D
11.0%
1Y
48.9%
PLTR
US$132.54
Palantir Technologies
7D
14.6%
1Y
-4.7%
Seeking Alpha • Jul 06

Palantir Is Turning AI Into Institutional Infrastructure

Summary Palantir Technologies Inc. is evolving into a control layer for operational AI, integrating models with enterprise data, workflows, and security across commercial and government sectors. AIP Bootcamps accelerate adoption, creating sticky customer relationships and driving rapid commercial expansion, evidenced by 133% U.S. commercial revenue growth in Q1 2026. PLTR delivers elite profitability—46% GAAP operating margin, 53% net income margin, and 57% adjusted free cash flow margin—while scaling revenue at 85% year-over-year. I rate PLTR a Strong Buy for investors able to withstand high valuation risk, as it cements itself as a critical AI infrastructure provider with explosive growth and robust margins. Read the full article on Seeking Alpha
IBM
US$299.52
International Business Machines
7D
7.7%
1Y
2.4%
AMD
US$552.05
Advanced Micro Devices
7D
2.3%
1Y
309.5%
Narrative Update • Jul 06

AMD: AI Data Center Demand And Meta Pact Will Drive Future Upside

Analyst price targets for AMD have moved sharply higher, with the updated fair value estimate rising from about $363 to roughly $681, as analysts point to stronger expectations around AI driven data center demand, EPYC server CPU traction, and AMD's positioning as an alternative GPU supplier in a tight supply environment. Analyst Commentary Recent Street research on Advanced Micro Devices shows a strong tilt toward higher valuation frameworks, with many bullish analysts lifting price targets as they reassess AI related growth opportunities in both data center CPUs and GPUs. The focus is on AMD's role in AI infrastructure, its position as an alternative GPU supplier, and the earnings power implied by long term AI related total addressable market forecasts.
MU
US$984.75
Micron Technology
7D
-14.0%
1Y
721.2%
TXN
US$303.50
Texas Instruments
7D
6.3%
1Y
42.2%
INTC
US$122.20
Intel
7D
-7.2%
1Y
455.5%
Seeking Alpha • Jul 04

Intel: AI Efficiency Could Counter Semiconductor Demand

Summary Intel faces asymmetric downside risk as AI infrastructure efficiency may outpace monetized demand, risking valuation multiple compression across semiconductors. INTC's foundry segment is especially vulnerable, with only $174M in external revenue and a $2.4B loss, amplifying downside if AI capex digestion occurs. Despite strong CPU, ASIC, and edge AI positioning, INTC's current valuation bakes in high sentiment and AI-era relevance, making the entry point unattractive. I rate INTC a Hold, expecting potential -30% downside over 12–18 months, but would phase in capital during a major semiconductor correction. Read the full article on Seeking Alpha
LRCX
US$350.20
Lam Research
7D
-14.8%
1Y
256.8%
APP
US$543.79
AppLovin
7D
9.0%
1Y
57.6%
AMAT
US$592.79
Applied Materials
7D
-14.7%
1Y
210.7%
Narrative Update • Jul 02

AMAT: AI WFE Supercycle Euphoria Will Later Test Overstretched Expectations

Applied Materials' analyst price target has been raised from $511.17 to $578.91 as analysts factor in heavier wafer fab equipment spending, extended backlog visibility, and stronger AI driven demand across foundry, DRAM, and advanced packaging. Analyst Commentary Recent research on Applied Materials points to a wide range of views, with most bullish analysts focused on extended wafer fab equipment visibility and AI related upside, while more cautious voices highlight execution risk against high expectations and valuation sensitivity.
GLW
US$194.80
Corning
7D
-23.8%
1Y
271.9%