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U.S. Tech Sector Analysis

UpdatedJan 09, 2026
DataAggregated Company Financials
Companies992
  • 7D-0.8%
  • 3M0.7%
  • 1Y21.8%
  • YTD-0.7%

Last week, the Tech industry hasn't moved much but Micron Technology is up 15% in that time. As for the the longer term, the industry is up 22% over the past 12 months. As for the next few years, earnings are expected to grow by 20% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 10 Jan 2026US$22.6tUS$2.6tUS$506.9b31.8x44.7x8.8x
Mon, 08 Dec 2025US$23.0tUS$2.6tUS$496.4b31.2x46.2x8.9x
Wed, 05 Nov 2025US$18.9tUS$2.5tUS$481.7b30.6x39.2x7.5x
Fri, 03 Oct 2025US$22.7tUS$2.5tUS$439.1b32.2x51.7x9.1x
Sun, 31 Aug 2025US$20.8tUS$2.5tUS$429.3b29.4x48.5x8.5x
Tue, 29 Jul 2025US$20.7tUS$2.4tUS$392.9b28.5x52.7x8.7x
Thu, 26 Jun 2025US$19.2tUS$2.4tUS$391.7b28.1x49.1x8.1x
Sat, 24 May 2025US$17.8tUS$2.4tUS$385.8b26.6x46.1x7.5x
Mon, 21 Apr 2025US$14.9tUS$2.3tUS$386.6b24.6x38.4x6.4x
Wed, 19 Mar 2025US$16.5tUS$2.3tUS$386.3b26.7x42.7x7.1x
Fri, 14 Feb 2025US$18.4tUS$2.3tUS$371.2b32.5x49.6x8x
Sun, 12 Jan 2025US$18.0tUS$2.3tUS$367.4b32.3x49.1x8x
Tue, 10 Dec 2024US$18.8tUS$2.3tUS$362.4b33.6x52x8.4x
Thu, 07 Nov 2024US$17.5tUS$2.2tUS$352.9b32.6x49.5x7.8x
Sat, 05 Oct 2024US$17.1tUS$2.2tUS$378.1b29.7x45.1x7.9x
Mon, 02 Sep 2024US$16.8tUS$2.2tUS$378.3b29.6x44.4x7.8x
Wed, 31 Jul 2024US$16.3tUS$2.1tUS$361.3b30.9x45x7.7x
Fri, 28 Jun 2024US$16.9tUS$2.1tUS$360.6b29.9x46.8x8x
Sun, 26 May 2024US$15.4tUS$2.1tUS$349.8b30.5x43.9x7.5x
Tue, 23 Apr 2024US$13.5tUS$2.0tUS$328.6b28x41x6.6x
Thu, 21 Mar 2024US$14.7tUS$2.0tUS$325.2b27.6x45.2x7.2x
Sat, 17 Feb 2024US$14.4tUS$2.0tUS$310.3b27.4x46.3x7.1x
Mon, 15 Jan 2024US$13.4tUS$2.0tUS$292.0b26x46x6.5x
Wed, 13 Dec 2023US$13.1tUS$2.1tUS$293.3b24.9x44.6x6.4x
Fri, 10 Nov 2023US$12.1tUS$2.0tUS$279.1b23.1x43.5x6x
Sun, 08 Oct 2023US$11.8tUS$2.0tUS$269.9b24.3x43.6x5.8x
Tue, 05 Sep 2023US$12.3tUS$2.0tUS$272.5b24.7x45x6x
Thu, 03 Aug 2023US$12.1tUS$2.0tUS$263.7b24.8x45.9x6x
Sat, 01 Jul 2023US$12.0tUS$2.0tUS$260.0b24.8x46.3x5.9x
Mon, 29 May 2023US$11.4tUS$2.0tUS$261.9b24.2x43.3x5.6x
Wed, 26 Apr 2023US$9.9tUS$2.0tUS$275.1b20.8x35.9x4.9x
Fri, 24 Mar 2023US$10.0tUS$2.0tUS$278.5b22.2x36x4.9x
Sun, 19 Feb 2023US$11.0tUS$2.3tUS$297.3b24.1x36.9x4.9x
Tue, 17 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 45x202420252026
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 45.0x.
  • 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 Market1.49%
Tech-0.84%
IT2.69%
Electronic Equipment and Components0.59%
Semiconductors0.54%
Software-1.10%
Communications-3.34%
Tech Hardware-3.99%
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 18.7%, 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
MU Micron TechnologyUS$327.0214.6%
+US$46.8b		229.0%PE30.9x
LRCX Lam ResearchUS$200.9617.4%
+US$37.4b		160.9%PE43.4x
INTC IntelUS$41.1111.4%
+US$21.0b		106.8%PE1035x
AMAT Applied MaterialsUS$281.649.6%
+US$19.5b		59.1%PE31.9x
KLAC KLAUS$1.32k9.0%
+US$14.4b		93.0%PE41.1x

Latest News

AAPL
US$259.04
Apple
7D
-4.7%
1Y
6.7%
NVDA
US$185.04
NVIDIA
7D
-2.0%
1Y
36.1%
ADI
US$299.16
Analog Devices
7D
10.3%
1Y
35.7%
KLAC
US$1,324.60
KLA
7D
9.0%
1Y
93.0%
MSFT
US$478.11
Microsoft
7D
-1.1%
1Y
12.6%
APP
US$616.53
AppLovin
7D
-8.5%
1Y
87.3%
INTC
US$41.11
Intel
7D
11.4%
1Y
106.8%
CSCO
US$73.96
Cisco Systems
7D
-4.0%
1Y
24.9%

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

Analysts nudged their Cisco Systems price target higher, citing a modest uptick in fair value and a slightly richer assumed future P/E multiple, supported by recent research highlighting continued strength in networking and growing artificial intelligence related demand despite softer security trends. Analyst Commentary Recent research on Cisco Systems reflects a generally constructive stance, with several firms lifting price targets and a couple of upgrades that highlight how investors are weighing networking strength and artificial intelligence demand against softer security trends.
AMD
US$204.68
Advanced Micro Devices
7D
-4.4%
1Y
68.0%

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$200.96
Lam Research
7D
17.4%
1Y
160.9%

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.
AVGO
US$332.48
Broadcom
7D
-4.4%
1Y
48.2%

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.
TXN
US$188.45
Texas Instruments
7D
8.6%
1Y
-1.7%

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$327.02
Micron Technology
7D
14.6%
1Y
229.0%

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.
AMAT
US$281.64
Applied Materials
7D
9.6%
1Y
59.1%

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$334.54
Sandisk
7D
40.9%
1Y
n/a
ORCL
US$189.65
Oracle
7D
-2.7%
1Y
16.2%