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U.S. Tech Sector Analysis

UpdatedMar 05, 2026
DataAggregated Company Financials
Companies988
  • 7D-2.7%
  • 3M-6.3%
  • 1Y24.9%
  • YTD-4.8%

Over the last 7 days, the Tech industry has dropped 2.7%, driven by NVIDIA declining 6.4%. In contrast, Palantir Technologies has gained 13%. Over the past 12 months, the industry was up 25%. As for the next few years, earnings are expected to grow by 19% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 05 Mar 2026US$21.2tUS$2.7tUS$539.8b30.3x39.3x7.9x
Sat, 31 Jan 2026US$22.4tUS$2.6tUS$528.5b30.2x42.3x8.6x
Mon, 29 Dec 2025US$22.9tUS$2.6tUS$506.9b30.7x45.1x8.8x
Wed, 26 Nov 2025US$22.2tUS$2.6tUS$492.8b29.1x45x8.6x
Fri, 24 Oct 2025US$22.7tUS$2.5tUS$442.4b30.4x51.2x9x
Sun, 21 Sep 2025US$22.2tUS$2.5tUS$435.4b31.4x51x9x
Tue, 19 Aug 2025US$21.1tUS$2.4tUS$418.3b27.8x50.5x8.7x
Thu, 17 Jul 2025US$20.3tUS$2.4tUS$393.2b29.1x51.6x8.5x
Sat, 14 Jun 2025US$18.7tUS$2.4tUS$391.0b27.5x47.9x7.9x
Mon, 12 May 2025US$16.8tUS$2.3tUS$383.7b25.7x43.7x7.1x
Wed, 09 Apr 2025US$14.1tUS$2.3tUS$386.8b23.6x36.5x6.1x
Fri, 07 Mar 2025US$17.0tUS$2.3tUS$379.3b28.1x44.9x7.3x
Sun, 02 Feb 2025US$18.0tUS$2.3tUS$370.8b33.3x48.5x7.9x
Tue, 31 Dec 2024US$18.7tUS$2.3tUS$366.8b32x51x8.3x
Thu, 28 Nov 2024US$18.2tUS$2.2tUS$361.4b33x50.3x8.1x
Sat, 26 Oct 2024US$17.7tUS$2.2tUS$378.1b30.6x46.8x8x
Mon, 23 Sep 2024US$17.0tUS$2.2tUS$375.4b28.8x45.2x7.8x
Wed, 21 Aug 2024US$17.1tUS$2.1tUS$368.2b29.7x46.3x8x
Fri, 19 Jul 2024US$17.0tUS$2.1tUS$363.1b31.3x46.8x8x
Sun, 16 Jun 2024US$17.0tUS$2.1tUS$360.7b29.1x47.1x8x
Tue, 14 May 2024US$14.6tUS$2.0tUS$337.0b29.5x43.3x7.2x
Thu, 11 Apr 2024US$14.6tUS$2.0tUS$328.6b28.1x44.4x7.1x
Sat, 09 Mar 2024US$14.7tUS$2.0tUS$324.8b28.3x45.1x7.2x
Mon, 05 Feb 2024US$14.2tUS$2.1tUS$305.9b26.6x46.3x6.9x
Wed, 03 Jan 2024US$13.1tUS$2.1tUS$292.7b25.9x44.6x6.4x
Fri, 01 Dec 2023US$12.8tUS$2.1tUS$292.6b24.9x43.7x6.2x
Sun, 29 Oct 2023US$11.2tUS$2.0tUS$278.4b22.2x40.1x5.5x
Tue, 26 Sep 2023US$11.5tUS$2.0tUS$273.1b24.7x42.1x5.6x
Thu, 24 Aug 2023US$11.9tUS$2.0tUS$264.9b24.3x44.9x5.9x
Sat, 22 Jul 2023US$12.2tUS$2.0tUS$258.1b25.5x47.3x6x
Mon, 19 Jun 2023US$11.9tUS$2.0tUS$264.4b24.9x45.2x5.9x
Wed, 17 May 2023US$10.5tUS$2.0tUS$262.0b22.9x39.9x5.2x
Fri, 14 Apr 2023US$10.3tUS$2.0tUS$274.9b22.9x37.3x5x
Sun, 12 Mar 2023US$10.6tUS$2.3tUS$298.6b21.8x35.7x4.7x
Price to Earnings Ratio

35.7x


Total Market Cap: US$10.6tTotal Earnings: US$298.6bTotal Revenue: US$2.3tTotal 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 39.3x 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 7.3x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 22% per year over the last three years.
  • Revenues for these companies have grown 5.5% 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-1.22%
Tech-2.70%
Software3.48%
IT3.41%
Communications2.27%
Tech Hardware-4.50%
Semiconductors-6.09%
Electronic Equipment and Components-6.77%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 31.4x.
    • Analysts are expecting annual earnings growth of 22.5%, which is higher than its past year's earnings growth of 17.4% per year.
  • Investors are most pessimistic about the Tech Hardware industry, which is trading close to its 3-year average of 32.9x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is better than its past earnings growth rate of 4.1% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.5% 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
PLTR Palantir TechnologiesUS$153.1912.7%
+US$41.3b		90.4%PE225.5x
MSFT MicrosoftUS$405.200.9%
+US$25.8b		2.1%PE25.2x
APP AppLovinUS$482.8114.5%
+US$20.6b		51.8%PE47.4x
DELL Dell TechnologiesUS$147.1019.1%
+US$15.7b		51.3%PE16.4x
INTU IntuitUS$440.1415.5%
+US$15.6b		-28.7%PE28x

Latest News

AVGO
US$317.53
Broadcom
7D
-4.4%
1Y
65.7%
DELL
US$147.10
Dell Technologies
7D
19.1%
1Y
51.3%
INTU
US$440.14
Intuit
7D
15.5%
1Y
-28.7%
AAPL
US$262.52
Apple
7D
-4.3%
1Y
11.4%
APP
US$482.81
AppLovin
7D
14.5%
1Y
51.8%

APP: Higher 2026 Guidance And Strong Margins Will Support Further Upside

Analysts have lowered their AppLovin price target to $651.43 from $737.21 as they incorporate updated assumptions around revenue growth, profit margins and a reduced future P/E multiple, which reflects a more balanced view of the company’s risk and return profile. What's in the News AppLovin issued earnings guidance for the first quarter of 2026, with total revenue expected to be in the range of $1.745 billion to $1.775 billion (Key Developments).
LRCX
US$222.99
Lam Research
7D
-10.6%
1Y
182.1%

LRCX: Future DRAM WFE Cycle May Drive Multi Year Upswing

The analyst price target for Lam Research has been raised by $10 to $254, as analysts point to higher wafer fab equipment growth forecasts, strong demand for DRAM memory spending, and broad Street support including Lam's addition to BofA's "US 1 List". Analyst Commentary Recent research is broadly constructive on Lam Research, with a series of higher price targets and fresh initiations pointing to confidence in the company’s position in wafer fab equipment and memory exposure.
IBM
US$250.06
International Business Machines
7D
5.3%
1Y
-0.5%

IBM: Mainframe And Consulting Execution Will Shape AI Upside And Downside

The analyst price target for International Business Machines has been reduced by about $9 to reflect a slightly higher discount rate and only modest adjustments to long term growth and margin assumptions, as analysts balance recent upgrades and target increases with concerns about slower mainframe and consulting momentum. Analyst Commentary Recent research on International Business Machines reflects a mixed backdrop, with some firms turning more constructive after earlier target hikes and a sharp 2026 share price pullback, and others flagging execution and growth risks around key businesses such as mainframe infrastructure and consulting.
NVDA
US$183.04
NVIDIA
7D
-6.4%
1Y
56.0%
ORCL
US$152.37
Oracle
7D
3.0%
1Y
-5.7%
MU
US$400.77
Micron Technology
7D
-6.6%
1Y
324.8%
SHOP
US$129.65
Shopify
7D
7.8%
1Y
22.1%

SHOP: Rich Multiple And Agentic Commerce Promise Will Shape Near-Term Trading

The analyst price target for Shopify in our model edges up from $110.00 to about $111.12 as analysts weigh a mix of recent target cuts and upgrades, with many still highlighting growth in agentic commerce, AI supported monetization, and the stock's pullback as key parts of their thesis. Analyst Commentary Recent research on Shopify reflects a split view, with some firms upgrading on the stock's pullback and AI and agentic commerce potential, while others are trimming targets or stepping to the sidelines after a strong run.
PLTR
US$153.19
Palantir Technologies
7D
12.7%
1Y
90.4%

Analysis of Palantir Technologies: Commercial Acceleration and Financial Maturity

Palantir Technologies Inc. has evolved from a specialized government contractor into a broad-market software provider.
AMD
US$202.07
Advanced Micro Devices
7D
-4.2%
1Y
98.8%
AMAT
US$357.76
Applied Materials
7D
-9.4%
1Y
130.3%

AMAT: Wafer Equipment Upswing And Services Mix Will Support Future Upside

Our fair value estimate for Applied Materials has been raised from $420.71 to $470.00 as analysts lift long term wafer fab equipment growth expectations and highlight the stock as a top pick in semiconductor production equipment. Analyst Commentary Recent Street research around Applied Materials has been heavily skewed toward positive revisions, with a broad group of bullish analysts lifting price targets and, in several cases, upgrading their ratings.
MSFT
US$405.20
Microsoft
7D
0.9%
1Y
2.1%
APH
US$132.75
Amphenol
7D
-13.0%
1Y
105.1%

APH: Future AI And Acquisition Hype Will Likely Cap Share Upside

Our analyst price target for Amphenol has been adjusted from $123.77 to $135.00, with analysts pointing to raised Street targets, support from data center AI exposure, and the planned CommScope Connectivity and Cable Solutions acquisition as key drivers behind the update. Analyst Commentary Recent Street research on Amphenol has leaned constructive, with several large firms lifting price targets and, in one case, moving the stock to an Overweight rating.