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U.S. Tech Sector Analysis

UpdatedSep 17, 2026
DataAggregated Company Financials
Companies989
  • 7D-1.5%
  • 3M-1.7%
  • 1Y25.7%
  • YTD21.3%

Over the last 7 days, the Tech industry has dropped 1.5%, driven by NVIDIA declining 4.4%. Meanwhile, Apple actually outperformed within the industry, gaining 5.4% in the last week. This takes the industry's 12 month performance to a gain of 26%. As for the next few years, earnings are expected to grow by 23% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 17 Sep 2026US$22.1tUS$3.1tUS$687.3b33.6x32.2x7.2x
Sat, 15 Aug 2026US$22.8tUS$3.0tUS$634.7b34.6x36x7.7x
Mon, 13 Jul 2026US$22.1tUS$2.9tUS$645.3b34.3x34.2x7.7x
Wed, 10 Jun 2026US$22.0tUS$2.8tUS$617.4b34.8x35.7x7.8x
Fri, 08 May 2026US$20.3tUS$2.8tUS$568.6b34.5x35.7x7.4x
Sun, 05 Apr 2026US$20.8tUS$2.7tUS$554.9b30x37.6x7.7x
Tue, 03 Mar 2026US$21.2tUS$2.7tUS$542.4b29.7x39.1x8x
Thu, 29 Jan 2026US$22.7tUS$2.6tUS$501.0b31.2x45.4x8.9x
Sat, 27 Dec 2025US$22.8tUS$2.6tUS$506.9b30.7x45.1x8.8x
Mon, 24 Nov 2025US$21.6tUS$2.6tUS$492.6b28.5x43.8x8.4x
Wed, 22 Oct 2025US$22.9tUS$2.5tUS$439.2b31.6x52x9.1x
Fri, 19 Sep 2025US$21.8tUS$2.5tUS$435.4b30.9x50x8.8x
Sun, 17 Aug 2025US$21.1tUS$2.4tUS$418.3b27.8x50.5x8.7x
Tue, 15 Jul 2025US$20.0tUS$2.4tUS$393.2b28.7x50.9x8.4x
Thu, 12 Jun 2025US$18.7tUS$2.4tUS$391.8b28x47.6x7.8x
Sat, 10 May 2025US$16.8tUS$2.3tUS$383.7b25.7x43.7x7.1x
Mon, 07 Apr 2025US$14.1tUS$2.3tUS$386.8b24.1x36.4x6x
Wed, 05 Mar 2025US$17.0tUS$2.3tUS$378.7b28.7x44.8x7.3x
Fri, 31 Jan 2025US$18.2tUS$2.3tUS$370.8b33.5x49x8x
Sun, 29 Dec 2024US$18.7tUS$2.3tUS$366.9b32.1x51x8.3x
Tue, 26 Nov 2024US$18.1tUS$2.2tUS$361.3b33.5x50.2x8.1x
Thu, 24 Oct 2024US$17.9tUS$2.2tUS$377.9b29.7x47.4x8.3x
Sat, 21 Sep 2024US$17.1tUS$2.2tUS$375.4b28.7x45.4x7.9x
Mon, 19 Aug 2024US$16.8tUS$2.1tUS$368.0b29.1x45.7x7.9x
Wed, 17 Jul 2024US$17.7tUS$2.1tUS$363.1b32x48.6x8.4x
Fri, 14 Jun 2024US$16.9tUS$2.1tUS$361.8b29.5x46.7x8x
Sun, 12 May 2024US$14.5tUS$2.0tUS$337.1b30.1x43x7.1x
Tue, 09 Apr 2024US$14.6tUS$2.0tUS$328.6b28.6x44.4x7.1x
Thu, 07 Mar 2024US$14.5tUS$2.0tUS$327.8b28.1x44.2x7.1x
Sat, 03 Feb 2024US$14.2tUS$2.1tUS$305.8b26.6x46.3x6.9x
Mon, 01 Jan 2024US$13.4tUS$2.1tUS$292.6b26.1x45.9x6.5x
Wed, 29 Nov 2023US$12.7tUS$2.0tUS$290.3b24.9x43.8x6.2x
Fri, 27 Oct 2023US$11.1tUS$2.0tUS$279.1b22.3x39.9x5.5x
Sun, 24 Sep 2023US$11.5tUS$2.0tUS$273.1b24.4x41.9x5.6x
Price to Earnings Ratio

41.9x


Total Market Cap: US$11.5tTotal Earnings: US$273.1bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.6x202420252026
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 32.2x which is lower than its 3-year average PE of 44.6x.
  • 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 36% per year over the last three years.
  • Revenues for these companies have grown 14% 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-1.07%
Tech-1.51%
Tech Hardware3.01%
IT1.18%
Communications0.84%
Software0.58%
Semiconductors-4.79%
Electronic Equipment and Components-4.88%
Industry PE
  • Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 37.3x.
    • Analysts are expecting annual earnings growth of 23.4%, which is higher than its past year's earnings growth of 14.4% per year.
  • Investors are most pessimistic about the Semiconductors industry, which is trading below its 3-year average of 53.0x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 31% 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 9.4% 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
AAPL AppleUS$332.415.4%
+US$249.1b		39.1%PE37.6x
CRWD CrowdStrike HoldingsUS$241.3616.2%
+US$34.9b		116.7%PE5504.3x
PANW Palo Alto NetworksUS$375.6512.1%
+US$34.2b		84.9%PE1000.9x
DELL Dell TechnologiesUS$563.295.2%
+US$17.8b		332.2%PE31.5x
PLTR Palantir TechnologiesUS$174.342.8%
+US$11.6b		3.6%PE138.9x

Latest News

MU
US$926.55
Micron Technology
7D
-5.2%
1Y
448.6%
PLTR
US$174.34
Palantir Technologies
7D
2.8%
1Y
3.6%
Seeking Alpha • 8h

Palantir's Real Moat Just Got Stronger

Summary Nvidia and Nebius partnerships strengthen Palantir’s position as the orchestration layer connecting AI compute, models, enterprise data, and workflows. Nvidia’s deployment spans over 1.3 million components per rack, potentially creating a reusable reference architecture for Palantir's customers. Palantir trades near 108x forward earnings versus 22x for the sector, leaving little room for execution or growth disappointments. Consensus EPS growth reaches 114% in 2026 before slowing toward 44% in 2027, making sustained execution critical to valuation support. Receivables reached $1.49 billion, while one customer represented 27%, adding financial risk alongside Palantir’s already demanding valuation. Read the full article on Seeking Alpha
ORCL
US$143.16
Oracle
7D
-11.4%
1Y
-52.5%
Seeking Alpha • 8h

Oracle: Dismiss The Overblown Credit Fears

Summary We believe Oracle to be undervalued due to overblown credit market fears regarding its capex and AI-related exposure. We point to a rising RPO balance, and accelerating deferred revenue and recognized revenue growth as indicating upside surprise potential in the stock. We rate ORCL at Accumulate between $134 and $198, and Hold between $198 and $250, with a $250 initial price target and a proposed stop below $134. Read the full article on Seeking Alpha
PANW
US$375.65
Palo Alto Networks
7D
12.1%
1Y
84.9%
CRWD
US$241.36
CrowdStrike Holdings
7D
16.2%
1Y
116.7%
AAPL
US$332.41
Apple
7D
5.4%
1Y
39.1%
NVDA
US$213.90
NVIDIA
7D
-4.4%
1Y
25.6%
LRCX
US$269.23
Lam Research
7D
-14.8%
1Y
120.9%
FTNT
US$171.77
Fortinet
7D
9.3%
1Y
113.9%
AVGO
US$339.51
Broadcom
7D
-6.8%
1Y
-1.9%
Seeking Alpha • Sep 15

Broadcom's Biggest Customers Want To Slow AI Down - They're Still Buying

Summary Broadcom Inc. maintains a Strong Buy rating as AI chip demand is robust, with $350 billion in shipments locked for fiscal 2027–2028. AVGO's AI revenue targets—$115B in 2027 and $230B in 2028—are grounded in secured supply and customer power constraints, not theoretical ceilings. Capex is rising sharply to address supply chokepoints, but operating margin remains strong at 67.9%, with AI now 56% of total revenue. AVGO's valuation has compressed to ~11.5x management's $30+ 2028 EPS target as market focus shifts to credit risk from AI lease guarantees. Read the full article on Seeking Alpha
SNDK
US$1,519.97
Sandisk
7D
-13.8%
1Y
1,517.5%
Seeking Alpha • Sep 14

Sandisk And The NAND Stabilization Test

Summary Sandisk Corporation's major upcoming test will be preserving and attempting to increase its earnings power as potentially NAND supply stabilizes and pricing becomes less favorable. Multi-year New Business Model agreements covering about half of projected fiscal 2027 bit shipments and roughly two-thirds of fiscal 2028 bits could reduce SNDK’s exposure to the NAND cycle. Growing enterprise SSD demand from AI inference, combined with Sandisk’s UltraQLC, BiCS9, BiCS10, and High Bandwidth Flash initiatives, could support a higher-value product mix and lower costs per bit. While acknowledging risks, I rate SNDK stock a cautious Buy, as the company has unique tools for this stage of the cycle, including increased exposure to AI inference. Read the full article on Seeking Alpha
AMAT
US$415.38
Applied Materials
7D
-11.4%
1Y
133.2%
QCOM
US$184.84
QUALCOMM
7D
4.8%
1Y
11.8%
Seeking Alpha • Sep 13

Qualcomm: AI Boom Ignored

Summary Qualcomm is executing a major pivot from handsets to AI data centers, highlighted by a transformative AWS deal. The wireless company targets $15B in data center revenue by FY29, with non-handset sales projected at $40B, signaling robust diversification. The AWS agreement includes up to $60B in payments for 25M warrants, accelerating QCOM’s data center revenue ramp at a limited cost. The stock trades at ~10x FY29 EPS target of $18, offering substantial upside as the market underappreciates its AI-driven growth trajectory. Read the full article on Seeking Alpha
DELL
US$563.29
Dell Technologies
7D
5.2%
1Y
332.2%
Seeking Alpha • Sep 13

Dell: Powerhouse AI Stock

Summary Dell Technologies has transformed into a mission-critical supplier for the global AI rollout, achieving record highs and justifying its momentum with robust fundamentals. ISG revenue surged 89% year-over-year to $31.8 billion, driven by unprecedented AI server demand, while CSG posted its strongest commercial growth in over four years. Fiscal Q2 2027 delivered a record $47.0 billion revenue and $7.04 adjusted EPS, with management raising full-year guidance to $192 billion revenue and $25.50 EPS. Despite a 345% YTD rally, DELL remains attractively valued at under 22x EPS, with a $95 billion backlog and a medium-term price target of $700 if execution persists. However, there are notable risks that can derail the momentum. Read the full article on Seeking Alpha
WDC
US$416.97
Western Digital
7D
-13.5%
1Y
313.1%
Seeking Alpha • Sep 11

Western Digital: The Correction Priced Out The Froth, Not The Compounding

Summary Western Digital is rated a Buy, with compounding AI-driven storage demand and a reasonable ~17.5x forward EV/EBITDA multiple supporting the thesis. Structural shifts from inference, agentic, and physical AI workloads underpin a 'new normal' of robust, less-cyclical storage demand, with pricing power intact through FY2027. Medium-term growth expectations have moderated to ~25% exabyte shipment growth, but pricing-led revenue and margin expansion remain strong, mitigating short-term volume fluctuations. Outer-year risks center on potential margin compression and multiple contraction, but base-case scenarios still screen net positive through FY2029, supporting near-term upside. Read the full article on Seeking Alpha
NOW
US$139.82
ServiceNow
7D
6.6%
1Y
-26.4%
Seeking Alpha • Sep 09

ServiceNow: A Gem Beating The SaaSpocalypse Narrative

Summary ServiceNow remains a Strong Buy, driven by robust AI integration, a resilient business model, and reaffirmed 2030 targets. NOW expects AI to grow from 9.5% to 30% of revenue by 2030, supporting management’s $30–32B subscription revenue target. Gross margins are projected to stay above 80% as AI adoption scales, with operating and FCF margin expansion anticipated in 2027. Despite premium valuation, NOW’s superior revenue and EBITDA growth, expanding ecosystem, and durable pricing power justify its multiple. Read the full article on Seeking Alpha