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U.S. Tech Sector Analysis

UpdatedJan 08, 2026
DataAggregated Company Financials
Companies992
  • 7D1.0%
  • 3M-1.9%
  • 1Y22.9%
  • YTD0.9%

Over the last 7 days, the Tech industry has remained flat, although notably Apple declined by 4.2%. The past year has been better, since the industry has gained 23% in that time. 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
Thu, 08 Jan 2026US$22.7tUS$2.6tUS$506.8b32.1x44.8x8.8x
Sat, 06 Dec 2025US$22.9tUS$2.6tUS$496.4b31.2x46.1x8.9x
Mon, 03 Nov 2025US$23.9tUS$2.5tUS$481.9b30.2x49.6x9.4x
Wed, 01 Oct 2025US$22.4tUS$2.5tUS$437.8b31.5x51.2x9.1x
Fri, 29 Aug 2025US$21.0tUS$2.4tUS$428.8b29.3x48.9x8.6x
Sun, 27 Jul 2025US$20.6tUS$2.4tUS$392.9b28.3x52.5x8.6x
Tue, 24 Jun 2025US$18.9tUS$2.4tUS$391.7b27.7x48.3x7.9x
Thu, 22 May 2025US$18.0tUS$2.4tUS$385.5b26.5x46.6x7.6x
Sat, 19 Apr 2025US$14.9tUS$2.3tUS$386.6b24.6x38.5x6.4x
Mon, 17 Mar 2025US$16.5tUS$2.3tUS$386.2b26.5x42.9x7.1x
Wed, 12 Feb 2025US$18.4tUS$2.3tUS$371.5b33.1x49.6x8x
Fri, 10 Jan 2025US$18.4tUS$2.3tUS$366.9b33.1x50.2x8.2x
Sun, 08 Dec 2024US$18.8tUS$2.3tUS$362.4b33.4x52x8.4x
Tue, 05 Nov 2024US$17.2tUS$2.2tUS$353.4b29.6x48.8x7.7x
Thu, 03 Oct 2024US$17.3tUS$2.2tUS$378.1b29.4x45.6x8x
Sat, 31 Aug 2024US$16.6tUS$2.2tUS$378.5b29.5x44x7.7x
Mon, 29 Jul 2024US$16.3tUS$2.1tUS$361.7b31.6x45.2x7.7x
Wed, 26 Jun 2024US$16.5tUS$2.1tUS$360.6b29.9x45.9x7.8x
Fri, 24 May 2024US$15.2tUS$2.1tUS$349.5b29.6x43.4x7.4x
Sun, 21 Apr 2024US$13.5tUS$2.0tUS$328.5b27.8x41x6.6x
Tue, 19 Mar 2024US$14.6tUS$2.0tUS$325.1b27.5x44.8x7.1x
Thu, 15 Feb 2024US$14.2tUS$2.0tUS$310.0b27.2x45.8x7x
Sat, 13 Jan 2024US$13.4tUS$2.0tUS$292.0b26x46x6.5x
Mon, 11 Dec 2023US$12.9tUS$2.1tUS$293.2b25x44x6.3x
Wed, 08 Nov 2023US$11.9tUS$2.0tUS$279.6b23.2x42.6x5.9x
Fri, 06 Oct 2023US$11.5tUS$2.0tUS$269.9b24.4x42.7x5.7x
Sun, 03 Sep 2023US$12.3tUS$2.0tUS$272.5b24.7x45x6x
Tue, 01 Aug 2023US$12.4tUS$2.0tUS$263.3b24.8x47.2x6.1x
Thu, 29 Jun 2023US$11.8tUS$2.0tUS$264.5b23.8x44.7x5.8x
Sat, 27 May 2023US$11.4tUS$2.0tUS$261.8b24.2x43.4x5.6x
Mon, 24 Apr 2023US$10.2tUS$2.0tUS$275.1b21.5x36.9x5x
Wed, 22 Mar 2023US$10.0tUS$2.0tUS$278.7b22x35.8x4.9x
Fri, 17 Feb 2023US$11.1tUS$2.3tUS$297.3b23.9x37.4x4.9x
Sun, 15 Jan 2023US$10.2tUS$2.2tUS$327.5b23.8x31.2x4.5x
Price to Earnings Ratio

31.2x


Total Market Cap: US$10.2tTotal Earnings: US$327.5bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.9x202420252026
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 44.9x.
  • The 3-year average PS ratio of 7.1x is lower than the industry's current PS ratio of 8.8x.
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 4.8% 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 Market1.52%
Tech1.03%
Semiconductors3.50%
IT2.68%
Electronic Equipment and Components2.24%
Software0.38%
Communications-0.41%
Tech Hardware-3.37%
Industry PE
  • Investors are most optimistic about the IT industry even though it's trading below its 3-year average PE ratio of 68.9x.
    • Analysts are expecting annual earnings growth of 18.8%, which is lower than the prior year's growth of 22.0% per year.
  • Investors are most pessimistic about the Tech Hardware industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 32.3x.
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 4.7% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.1% 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
NVDA NVIDIAUS$189.111.4%
+US$63.4b		35.0%PE46.3x
MU Micron TechnologyUS$339.5519.0%
+US$60.9b		241.6%PE32.1x
LRCX Lam ResearchUS$203.0818.6%
+US$40.1b		163.6%PE43.9x
INTC IntelUS$42.6315.5%
+US$28.6b		114.4%PE1073.2x
AMAT Applied MaterialsUS$292.2013.7%
+US$27.9b		65.1%PE33.1x

Latest News

APP
US$632.92
AppLovin
7D
-6.1%
1Y
92.3%
INTC
US$42.63
Intel
7D
15.5%
1Y
114.4%
NVDA
US$189.11
NVIDIA
7D
1.4%
1Y
35.0%
AMD
US$210.02
Advanced Micro Devices
7D
-1.9%
1Y
72.4%

AMD: AI And Rack Scale Execution Will Define The Next Chapter

Analysts have raised their AMD fair value estimate from about $137 to roughly $208. This change reflects higher assumptions for revenue growth and profit margins in AI accelerators and rack scale systems, partly offset by a slightly higher discount rate and more conservative future P/E expectations.
LRCX
US$203.08
Lam Research
7D
18.6%
1Y
163.6%

LRCX: AI And Memory Upcycle Enthusiasm Will Eventually Disappoint Expectations

Narrative Update: Lam Research The analyst price target for Lam Research has moved higher from US$110.13 to US$115.00, as analysts factor in recent coverage initiations, higher targets across the Street, and ongoing confidence in the company’s role in AI related wafer fab equipment demand and 3D memory leadership. Analyst Commentary Recent Street research on Lam Research clusters around increasing confidence in the company’s position in AI related wafer fab equipment, memory, and advanced node spending, with several firms lifting price targets following strong quarterly results and guidance.
DELL
US$120.07
Dell Technologies
7D
-4.6%
1Y
0.6%
AVGO
US$343.50
Broadcom
7D
-0.8%
1Y
49.8%

AVGO: Custom AI Chip Deployments And OpenAI Deal Will Shape Future Balance

Narrative Update Analysts lifted their Broadcom fair value estimate from $344.62 to $365.10 as they update models for higher AI related revenue expectations, stronger profitability tied to custom accelerators for partners like OpenAI and Google, and a lower future P/E assumption that reflects rising conviction in the company's role in large scale AI deployments. Analyst Commentary Recent Street research on Broadcom has centered on the company’s role in large scale AI build outs, especially around custom accelerators for major cloud and AI customers.
AAPL
US$260.33
Apple
7D
-4.2%
1Y
7.3%

AAPL: AI Hardware Ambitions Will Strain Margins And Justify Only Limited Upside

Analysts have lifted their Apple fair value estimate from about $175 to roughly $218, as they factor in Street research that highlights stronger expected revenue growth, firmer profit margins, and ongoing interest in Apple's role across iPhone demand, custom silicon, and AI related opportunities. Analyst Commentary Recent Street research around Apple has tilted more constructive, with several firms lifting price targets and some moving to more positive ratings.
CSCO
US$74.72
Cisco Systems
7D
-3.0%
1Y
26.2%
TXN
US$185.71
Texas Instruments
7D
7.0%
1Y
-3.1%

TXN: Margin Reset And Cyclical Softness Will Set Up Future Rebound

Narrative Update Analysts have reduced the implied fair value for Texas Instruments to $245 from $260. This reflects updated views on higher required returns, more moderate revenue growth, softer profit margins, and a higher future P/E multiple following recent price target cuts and more cautious commentary on margins, utilization, and end demand.
MU
US$339.55
Micron Technology
7D
19.0%
1Y
241.6%

MU: AI Memory Supercycle Hype Will Likely Drive Future Multiple Compression

Micron Technology's fair value estimate has been raised from approximately $105.48 to $171.83. Analysts attribute this change to tightening DRAM supply, accelerating high bandwidth memory ramps for AI workloads, and improving margin and earnings visibility despite recent sector volatility.
KLAC
US$1,359.69
KLA
7D
11.9%
1Y
98.1%

KLAC: AI And DRAM Upswing Will Leave Shares Vulnerable To Cycle Normalization

Analysts have raised their price target on KLA from about $655 to roughly $1,083 per share, reflecting increased confidence in the company's strengthening profit margins, higher long term valuation multiple, and improved visibility into AI driven demand and memory investment cycles. Analyst Commentary Recent Street research has turned more constructive on KLA, with multiple firms lifting price targets and highlighting the company’s leverage to AI driven process control intensity and improving memory investment.
AMAT
US$292.20
Applied Materials
7D
13.7%
1Y
65.1%

AMAT: Future Multiple Compression Will Likely Pressure Elevated Share Price

Our fair value estimate for Applied Materials has been raised to $180 from $160.41 as analysts lift price targets into the mid to high $200s, citing above-consensus execution, resilient foundry and memory demand, de-risked China exposure, and strengthening recurring services growth. Analyst Commentary Street research has turned more constructive on Applied Materials, with multiple firms lifting price targets into the $250 to $270 range following solid quarterly execution, above-consensus guidance, and stronger visibility into 2026 wafer fab equipment demand.
SNDK
US$353.56
Sandisk
7D
48.9%
1Y
n/a
ORCL
US$192.84
Oracle
7D
-1.1%
1Y
18.2%
ADBE
US$338.10
Adobe
7D
-3.4%
1Y
-19.4%

ADBE: Rising AI Costs Will Pressure Margins And Drive Multiple Compression

Analysts have reduced their fair value estimate for Adobe from $380.00 to about $271.93 per share, citing expectations for slightly slower revenue growth, lower long term profit margins, and a more conservative valuation multiple. Analyst Commentary Bearish analysts have become more vocal on Adobe, pointing to a combination of moderating growth expectations and tighter competitive dynamics across creative, document, and marketing workflows.