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U.S. Tech Sector Analysis

UpdatedJan 28, 2026
DataAggregated Company Financials
Companies988
  • 7D3.6%
  • 3M-6.3%
  • 1Y23.4%
  • YTD0.6%

In the last week, the Tech industry is up 3.6%, with Microsoft leading the way, up 5.7%. In the same time, Intel was down 9.5%. This means that the industry has gained 23% over the past year. Looking forward, 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
Wed, 28 Jan 2026US$22.4tUS$2.6tUS$500.4b32.3x44.8x8.8x
Fri, 26 Dec 2025US$22.8tUS$2.6tUS$506.9b31.1x45.1x8.8x
Sun, 23 Nov 2025US$21.6tUS$2.6tUS$492.8b28.5x43.8x8.4x
Tue, 21 Oct 2025US$22.9tUS$2.5tUS$439.1b31.2x52.1x9.2x
Thu, 18 Sep 2025US$21.8tUS$2.5tUS$435.5b29.8x50x8.8x
Sat, 16 Aug 2025US$21.2tUS$2.4tUS$418.3b27.9x50.8x8.7x
Mon, 14 Jul 2025US$20.0tUS$2.4tUS$393.2b28.9x50.9x8.4x
Wed, 11 Jun 2025US$18.6tUS$2.4tUS$391.8b27.8x47.6x7.8x
Fri, 09 May 2025US$16.6tUS$2.3tUS$387.4b26.3x42.9x7.1x
Sun, 06 Apr 2025US$14.1tUS$2.3tUS$386.8b24.1x36.4x6x
Tue, 04 Mar 2025US$17.3tUS$2.3tUS$378.5b28.8x45.7x7.5x
Thu, 30 Jan 2025US$18.3tUS$2.3tUS$366.4b34.6x50.1x8.1x
Sat, 28 Dec 2024US$18.8tUS$2.3tUS$366.9b32.1x51.2x8.3x
Mon, 25 Nov 2024US$18.1tUS$2.3tUS$361.1b33x50.2x8.1x
Wed, 23 Oct 2024US$17.9tUS$2.2tUS$378.2b30.1x47.4x8.3x
Fri, 20 Sep 2024US$16.5tUS$2.2tUS$375.4b28.9x44.1x7.6x
Sun, 18 Aug 2024US$16.8tUS$2.1tUS$368.0b29.1x45.7x7.9x
Tue, 16 Jul 2024US$17.6tUS$2.1tUS$363.1b31.3x48.5x8.3x
Thu, 13 Jun 2024US$16.0tUS$2.1tUS$351.3b29.9x45.4x7.8x
Sat, 11 May 2024US$14.4tUS$2.0tUS$337.0b30.1x42.9x7.1x
Mon, 08 Apr 2024US$14.6tUS$2.0tUS$328.6b28.3x44.4x7.1x
Wed, 06 Mar 2024US$14.8tUS$2.0tUS$327.5b27.3x45.3x7.3x
Fri, 02 Feb 2024US$14.0tUS$2.1tUS$302.2b25.8x46.3x6.8x
Sun, 31 Dec 2023US$13.4tUS$2.1tUS$292.6b26.1x45.9x6.5x
Tue, 28 Nov 2023US$12.7tUS$2.0tUS$290.1b25.1x43.8x6.2x
Thu, 26 Oct 2023US$11.3tUS$2.0tUS$274.4b22.6x41.3x5.5x
Sat, 23 Sep 2023US$11.5tUS$2.0tUS$272.9b24.4x42x5.6x
Mon, 21 Aug 2023US$11.4tUS$2.0tUS$264.4b24.5x43.2x5.6x
Wed, 19 Jul 2023US$12.6tUS$2.0tUS$257.8b25.7x48.7x6.2x
Fri, 16 Jun 2023US$11.9tUS$2.0tUS$264.3b24.8x45x5.9x
Sun, 14 May 2023US$10.4tUS$2.0tUS$262.0b22.8x39.5x5.1x
Tue, 11 Apr 2023US$10.2tUS$2.0tUS$275.0b22.8x37.2x5x
Thu, 09 Mar 2023US$11.0tUS$2.3tUS$298.2b22.8x37x4.9x
Sat, 04 Feb 2023US$11.2tUS$2.2tUS$320.4b25.4x34.8x5x
Price to Earnings Ratio

34.8x


Total Market Cap: US$11.2tTotal Earnings: US$320.4bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.2x202420252026
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 45.2x.
  • The 3-year average PS ratio of 7.2x 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 4.4% 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 Market2.04%
Tech3.55%
Communications7.49%
Electronic Equipment and Components5.32%
Tech Hardware4.77%
Software3.39%
Semiconductors2.82%
IT2.80%
Industry PE
  • Investors are most optimistic about the Semiconductors industry, which is trading close to its 3-year average PE ratio of 52.6x.
    • Analysts are expecting annual earnings growth of 25.5%, which is higher than its past year's earnings growth of 4.4% 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 32.5x.
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 4.4% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.6% 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$480.585.7%
+US$193.7b		7.5%PE34x
AAPL AppleUS$258.274.7%
+US$170.1b		8.4%PE33.9x
NVDA NVIDIAUS$188.522.8%
+US$126.4b		52.4%PE46.2x
MU Micron TechnologyUS$410.2412.4%
+US$50.9b		364.9%PE38.8x
AMD Advanced Micro DevicesUS$252.038.7%
+US$32.7b		120.7%PE131x

Latest News

ROP
US$369.27
Roper Technologies
7D
-8.5%
1Y
-32.8%
ANET
US$146.69
Arista Networks
7D
15.0%
1Y
37.7%
NVDA
US$188.52
NVIDIA
7D
2.8%
1Y
52.4%
MSFT
US$480.58
Microsoft
7D
5.7%
1Y
7.5%
LRCX
US$238.46
Lam Research
7D
7.2%
1Y
220.0%
ORCL
US$174.90
Oracle
7D
-2.8%
1Y
6.6%

ORCL: AI Data Center Expansion Will Support Long-Term Cloud Demand Upside

Analysts have trimmed their average Oracle price target by $107 to US$240. This reflects a mix of renewed optimism around artificial intelligence driven infrastructure as a service demand, along with concerns about concentration in large AI contracts, elevated investment needs and recent recalibrations of prior bullish assumptions.
CSCO
US$78.68
Cisco Systems
7D
7.3%
1Y
32.4%

CSCO: AI Infrastructure And Networking Strength Will Support Multi Year Upside

Analysts nudged their price target on Cisco Systems higher to $86.00 from $85.43, citing firm networking trends, improving profit margins, and growing artificial intelligence related demand as key supports for the updated view. Analyst Commentary Recent research on Cisco highlights a mix of optimism around networking and artificial intelligence exposure, with some caution around security and the durability of current trends.
INTC
US$43.93
Intel
7D
-9.5%
1Y
121.9%
ALAB
US$170.93
Astera Labs
7D
-7.0%
1Y
90.7%
AAPL
US$258.27
Apple
7D
4.7%
1Y
8.4%

Maintaining FV - it's all coming true

Am maintaining my FV on this one. This video does a great job of explaining the many years of weak product innovation, which will be hard to recover from.
AMD
US$252.03
Advanced Micro Devices
7D
8.7%
1Y
120.7%

AMD: AI Rack Systems And Policy Risks Will Shape The Next Phase

Analysts nudged their price target higher for Advanced Micro Devices, with fair value moving from $207.91 to $213.89 as they factor in slightly stronger expected revenue growth, a small uplift in profit margins, and a modestly higher future P/E multiple, supported by recent research highlighting AI accelerator demand, rack scale system opportunities, and broader data center traction. Analyst Commentary Recent research around AMD reflects a mix of optimism on AI growth and clear reminders that execution and competition still matter a lot for what investors are paying for the stock.
CRDO
US$129.57
Credo Technology Group Holding
7D
-15.4%
1Y
122.8%

CRDO: Sector Q3 Support And AI Connectivity Licensing Will Drive Upside

Analysts have lifted their fair value estimate for Credo Technology Group Holding by US$10 to US$260, reflecting updated assumptions for revenue growth, profit margins, and a higher future P/E, in line with recent price target increases cited in Street research. Analyst Commentary Recent Street research has leaned constructive on Credo Technology Group Holding, with bullish analysts marking up their price targets in response to their updated outlooks on earnings and sector trends.
APP
US$543.56
AppLovin
7D
-3.9%
1Y
50.7%

APP: Heavy Buybacks And Lofty Margins Will Likely Cap Future Upside

Analysts have nudged their fair value estimate for AppLovin to $544.25, a modest move from $538.97. The change reflects refreshed assumptions around revenue growth, profit margins, discount rate and future P/E multiples.
SHOP
US$137.50
Shopify
7D
-4.8%
1Y
17.1%

SHOP: AI Monetization And Operating Leverage Will Support Measured Upside Into 2026

Analysts have nudged our implied fair value for Shopify to about US$179.49 per share, up roughly US$4 from the prior US$175.43. This reflects Street research that highlights stronger top line potential, rising AI related monetization and operating leverage, partially offset by more cautious views on valuation, margins and already high expectations.
MU
US$410.24
Micron Technology
7D
12.4%
1Y
364.9%

MU: AI Memory Supercycle Hype Will Eventually Meet New DRAM Capacity

Our fair value estimate for Micron Technology has been adjusted higher to US$176.14 from US$171.83, reflecting analysts' higher price targets and rationale around tight DRAM supply, strong AI driven memory demand, and expectations for improved margins and earnings power. Analyst Commentary Recent research has generally pointed to tight DRAM conditions, AI related memory demand, and constrained high bandwidth memory supply as key themes for Micron.
PLTR
US$165.70
Palantir Technologies
7D
-1.7%
1Y
106.5%