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U.S. Tech Sector Analysis

UpdatedAug 26, 2026
DataAggregated Company Financials
Companies984
  • 7D-1.9%
  • 3M-0.4%
  • 1Y29.4%
  • YTD20.2%

Over the last 7 days, the Tech industry has dropped 4.9%, driven by a pullback from NVIDIA of 3.0%. This takes the industry's 12 month performance to a gain of 30%. Earnings are forecast to grow by 23% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 26 Aug 2026US$21.7tUS$3.0tUS$637.3b33.2x34x7.3x
Fri, 24 Jul 2026US$21.5tUS$2.9tUS$645.1b32.7x33.4x7.5x
Sun, 21 Jun 2026US$22.7tUS$2.8tUS$618.6b34.7x36.6x8x
Tue, 19 May 2026US$21.0tUS$2.8tUS$570.8b34.9x36.7x7.5x
Thu, 16 Apr 2026US$22.6tUS$2.7tUS$555.0b32.6x40.7x8.4x
Sat, 14 Mar 2026US$21.2tUS$2.7tUS$542.7b30x39.1x7.9x
Mon, 09 Feb 2026US$21.7tUS$2.6tUS$517.1b30.3x42.1x8.3x
Wed, 07 Jan 2026US$22.5tUS$2.6tUS$506.8b32.1x44.5x8.7x
Fri, 05 Dec 2025US$22.8tUS$2.6tUS$497.5b30.8x45.8x8.9x
Sun, 02 Nov 2025US$23.9tUS$2.5tUS$481.9b30.2x49.6x9.4x
Tue, 30 Sep 2025US$22.2tUS$2.5tUS$437.8b30.9x50.8x9x
Thu, 28 Aug 2025US$21.0tUS$2.4tUS$419.1b29.3x50x8.6x
Sat, 26 Jul 2025US$20.6tUS$2.4tUS$392.9b28.3x52.3x8.6x
Mon, 23 Jun 2025US$18.7tUS$2.4tUS$391.7b27.2x47.8x7.8x
Wed, 21 May 2025US$18.1tUS$2.4tUS$385.2b26.7x47x7.7x
Fri, 18 Apr 2025US$14.9tUS$2.3tUS$386.6b24.6x38.6x6.4x
Sun, 16 Mar 2025US$16.6tUS$2.3tUS$386.2b26.5x42.9x7.1x
Tue, 11 Feb 2025US$18.2tUS$2.3tUS$372.0b33.2x48.8x7.9x
Thu, 09 Jan 2025US$18.4tUS$2.3tUS$366.9b33.1x50.2x8.2x
Sat, 07 Dec 2024US$18.8tUS$2.3tUS$362.4b33.4x51.9x8.4x
Mon, 04 Nov 2024US$17.2tUS$2.2tUS$353.4b29.7x48.8x7.7x
Wed, 02 Oct 2024US$17.3tUS$2.2tUS$378.1b29.4x45.6x8x
Fri, 30 Aug 2024US$16.7tUS$2.2tUS$378.3b29.2x44.2x7.7x
Sun, 28 Jul 2024US$16.3tUS$2.1tUS$361.7b31.6x45.2x7.7x
Tue, 25 Jun 2024US$16.9tUS$2.1tUS$360.6b29.8x46.8x8x
Thu, 23 May 2024US$15.2tUS$2.0tUS$337.3b29.6x44.9x7.4x
Sat, 20 Apr 2024US$13.9tUS$2.0tUS$328.5b27.8x42.3x6.8x
Mon, 18 Mar 2024US$14.5tUS$2.0tUS$325.3b27.9x44.7x7.1x
Wed, 14 Feb 2024US$14.2tUS$2.0tUS$309.8b27x45.8x7x
Fri, 12 Jan 2024US$13.4tUS$2.0tUS$292.0b26.1x45.7x6.5x
Sun, 10 Dec 2023US$12.9tUS$2.1tUS$293.2b25x44x6.3x
Tue, 07 Nov 2023US$11.8tUS$2.0tUS$279.2b22.8x42.4x5.8x
Thu, 05 Oct 2023US$11.6tUS$2.0tUS$269.9b24.7x43x5.7x
Sat, 02 Sep 2023US$12.3tUS$2.0tUS$272.5b24.7x45x6x
Price to Earnings Ratio

45x


Total Market Cap: US$12.3tTotal Earnings: US$272.5bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.8x202420252026
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 34.4x which is lower than its 3-year average PE of 44.8x.
  • The industry is trading close to its 3-year average PS ratio of 7.7x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 33% per year over the last three years.
  • Revenues for these companies have grown 13% 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-0.31%
Tech-1.88%
Software1.02%
IT-0.30%
Communications-0.86%
Tech Hardware-1.25%
Semiconductors-3.74%
Electronic Equipment and Components-4.82%
Industry PE
  • Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 36.5x.
    • Analysts are expecting annual earnings growth of 24.4%, which is higher than its past year's earnings growth of 14.3% per year.
  • Investors are most pessimistic about the Semiconductors industry, which is trading below its 3-year average of 53.5x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.7% 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$491.712.1%
+US$74.8b		-2.1%PE27.3x
MRVL Marvell TechnologyUS$240.3811.3%
+US$21.6b		223.7%PE83.4x
MSTR StrategyUS$126.8337.1%
+US$13.2b		-63.9%PS97.8x
SHOP ShopifyUS$153.885.0%
+US$9.4b		9.3%PE102.7x
ACN AccentureUS$186.938.1%
+US$8.6b		-26.8%PE14.7x

Latest News

MRVL
US$240.38
Marvell Technology
7D
11.3%
1Y
223.7%
Seeking Alpha • 11h

Marvell Technology: Strong Buy After A 23% Selloff

Summary Marvell Technology remains a strong buy, with a new price target of $435, indicating 90% upside despite recent share price volatility. MRVL is expected to deliver robust revenue and EPS growth, with consensus projecting 35% revenue growth and 39% EPS growth for Q2 FY27. Long-term growth is underpinned by accelerating demand for high-speed optical connectivity and custom silicon, supporting sustained 40%-45% annual growth through FY29. Margins may face short-term pressure from product mix and ramp-up, but free cash flow and shareholder returns are set to increase substantially in coming years. Read the full article on Seeking Alpha
NVDA
US$213.05
NVIDIA
7D
-3.0%
1Y
17.2%
ACN
US$186.93
Accenture
7D
8.1%
1Y
-26.8%
INTC
US$87.48
Intel
7D
-9.5%
1Y
259.3%
MSTR
US$126.83
Strategy
7D
37.1%
1Y
-63.9%
ORCL
US$144.76
Oracle
7D
1.4%
1Y
-38.2%
CRWD
US$185.38
CrowdStrike Holdings
7D
-12.9%
1Y
77.6%
Seeking Alpha • Aug 24

CrowdStrike: Excellent Product, Unjustifiable Valuation

Summary CrowdStrike is fundamentally overvalued, trading at a $195B market cap and forward P/E of 155, despite strong revenue growth. CRWD's business model requires perpetual high spending on R&D and marketing, limiting future net margin expansion and undermining bullish operating leverage assumptions. Generative AI accelerates competition, lowering barriers for both startups and tech giants, threatening CRWD’s pricing power and market share. I rate CRWD a Strong Sell, as current valuations price in flawless execution and ignore structural profitability constraints and intensifying competitive risks. Read the full article on Seeking Alpha
CRM
US$205.69
Salesforce
7D
4.9%
1Y
-15.6%
Seeking Alpha • Aug 24

Salesforce Forcing Itself Higher Through Massive Buybacks And AI-Led Growth

Summary Salesforce is positioned as a buy ahead of Q2 earnings, driven by modest valuation and technical breakout. CRM trades at 4x revenue and 14x PE, with limited optimism priced in, suggesting potential for upside surprise. The company executed a $27.5 billion share buyback, reducing shares outstanding by 12% and establishing valuation support. Growth in new AI revenue streams, including AgentForce ($1B+ ARR) and Data 360 ($3.4B ARR), underpins the investment thesis. Read the full article on Seeking Alpha
SNDK
US$1,480.77
Sandisk
7D
-8.9%
1Y
3,027.3%
Seeking Alpha • Aug 24

Why Sandisk? Cyclicality Is Not The Only Open Question

Summary Two-thirds of Sandisk's impressive sequential revenue growth came from Pricing, only one-third from volume. One key question is, therefore, sustainability beyond the current rush driven by AI datacenter buildout. More notably, however, SNDK's growth projections closely track the overall flash storage market, with no expected market share gains. Given industry-wide drivers, rather than idiosyncratic ones, a Memory or Storage ETF might be preferable to single-stock exposure. Read the full article on Seeking Alpha
STX
US$821.67
Seagate Technology Holdings
7D
-9.1%
1Y
397.3%
MSFT
US$491.71
Microsoft
7D
2.1%
1Y
-2.1%
AMAT
US$480.04
Applied Materials
7D
-6.7%
1Y
191.8%
Seeking Alpha • Aug 22

Applied Materials: I Am Reiterating My Strong Buy As AI Manufacturing Demand Accelerates

Summary I'm reiterating Applied Materials as a Strong Buy rating, with the price target revised to $680 from $802 due to a more conservative valuation multiple. Q3 2026 results reinforce my thesis that AI-driven demand is transforming semiconductor equipment into a structural growth cycle, not just a capacity cycle. AMAT is well-positioned, as leading-edge foundry logic, DRAM, and advanced packaging are set to drive 80% of WFE growth through 2027. Valuation has compressed to 38.79x FWD P/E, while forward growth metrics remain robust, improving the risk-reward profile after the recent selloff. Read the full article on Seeking Alpha
NOW
US$127.00
ServiceNow
7D
6.3%
1Y
-26.6%
PANW
US$339.90
Palo Alto Networks
7D
-9.2%
1Y
84.5%
Seeking Alpha • Aug 21

Palo Alto Networks: Upcoming Earnings Beat, Valuation Is Crazy

Summary Palo Alto Networks, Inc. is expected to report robust Q4 revenue growth, likely exceeding consensus estimates, driven by strong bookings and Next-Generation Security momentum. Recurring revenue from Next-Generation Security grew 60% last quarter, while remaining performance obligations rose 36%, supporting sustained top-line expansion. Despite consistent earnings beats, EPS growth is constrained by a 15% share count increase, resulting in projected EPS growth of only 5–10%. At ~95x earnings and a PEG ratio near 5, PANW's valuation appears stretched relative to its near-term EPS growth, prompting a neutral stance. Read the full article on Seeking Alpha
AVGO
US$356.74
Broadcom
7D
-6.1%
1Y
19.7%
Seeking Alpha • Aug 20

Broadcom: Marvell Panic Causes A Huge Buying Opportunity

Summary Broadcom Inc. remains a prime beneficiary of the AI boom, with robust profit growth expected for years. The recent selloff following the Marvell-Alphabet deal is seen as an overreaction; the partnership does not threaten AVGO’s position or growth trajectory. AVGO’s valuation is compelling, with downside risk already priced in even under conservative growth assumptions. Even with bearish growth scenarios, AVGO offers attractive annualized returns of 12%+, with potential for much higher upside if consensus is met or exceeded. Read the full article on Seeking Alpha
SHOP
US$153.88
Shopify
7D
5.0%
1Y
9.3%
Narrative Update • Aug 20

SHOP: AI And Agentic Commerce Euphoria Will Pressure Future Return Multiples

Shopify's analyst fair value estimate has been updated from $105.00 to about $123.66 as analysts factor in stronger modeled revenue growth and a slightly higher future P/E multiple, while acknowledging some pressure on projected profit margins and using a higher discount rate. Analyst Commentary Recent research coverage on Shopify points to generally constructive sentiment, with many firms lifting price targets after the latest quarterly results.