Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Tech Sector Analysis

UpdatedJan 16, 2026
DataAggregated Company Financials
Companies991
  • 7D-0.003%
  • 3M-1.3%
  • 1Y22.3%
  • YTD-0.6%

The Tech industry has been flat over the last week, but Microsoft has lost 4.5%. The past year has been better, since the industry has gained 22% in that time. 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
Fri, 16 Jan 2026US$22.4tUS$2.6tUS$500.6b32x44.7x8.8x
Sun, 14 Dec 2025US$22.4tUS$2.6tUS$503.6b31.1x44.6x8.7x
Tue, 11 Nov 2025US$23.2tUS$2.5tUS$478.4b30.1x48.5x9.1x
Thu, 09 Oct 2025US$22.7tUS$2.5tUS$438.2b32.5x51.9x9.2x
Sat, 06 Sep 2025US$20.8tUS$2.5tUS$435.1b29.2x47.9x8.5x
Mon, 04 Aug 2025US$20.3tUS$2.4tUS$413.0b27.6x49.1x8.4x
Wed, 02 Jul 2025US$19.6tUS$2.4tUS$393.2b28.8x49.8x8.2x
Fri, 30 May 2025US$18.0tUS$2.4tUS$389.8b27.3x46.3x7.6x
Sun, 27 Apr 2025US$16.1tUS$2.3tUS$386.0b25.9x41.7x6.9x
Tue, 25 Mar 2025US$16.6tUS$2.3tUS$386.8b27.7x42.9x7.1x
Thu, 20 Feb 2025US$18.9tUS$2.3tUS$369.6b32.1x51x8.2x
Sat, 18 Jan 2025US$18.2tUS$2.3tUS$367.0b33.9x49.6x8x
Mon, 16 Dec 2024US$18.7tUS$2.3tUS$363.6b32.3x51.4x8.3x
Wed, 13 Nov 2024US$18.1tUS$2.2tUS$349.2b33.1x51.9x8.1x
Fri, 11 Oct 2024US$17.6tUS$2.2tUS$378.2b29.9x46.5x8.1x
Sun, 08 Sep 2024US$15.6tUS$2.2tUS$374.5b27.2x41.7x7.2x
Tue, 06 Aug 2024US$15.6tUS$2.1tUS$363.3b28.3x42.9x7.3x
Thu, 04 Jul 2024US$17.4tUS$2.1tUS$362.9b30.8x47.9x8.2x
Sat, 01 Jun 2024US$15.1tUS$2.1tUS$351.1b29.5x43x7.3x
Mon, 29 Apr 2024US$14.2tUS$2.1tUS$335.6b28.4x42.3x6.9x
Wed, 27 Mar 2024US$14.8tUS$2.0tUS$328.2b27.4x45.1x7.3x
Fri, 23 Feb 2024US$13.9tUS$2.0tUS$322.1b28.1x43.1x6.8x
Sun, 21 Jan 2024US$13.9tUS$2.0tUS$292.0b26.5x47.4x6.8x
Tue, 19 Dec 2023US$13.4tUS$2.1tUS$293.6b26.2x45.5x6.5x
Thu, 16 Nov 2023US$12.6tUS$2.0tUS$280.3b24.5x44.8x6.2x
Sat, 14 Oct 2023US$11.7tUS$2.0tUS$270.2b24.8x43.5x5.8x
Mon, 11 Sep 2023US$12.0tUS$2.0tUS$272.9b24.3x43.8x5.9x
Wed, 09 Aug 2023US$11.8tUS$2.0tUS$262.4b25.1x45x5.8x
Fri, 07 Jul 2023US$11.9tUS$2.0tUS$258.1b24.7x46.1x5.9x
Sun, 04 Jun 2023US$11.5tUS$2.0tUS$264.1b24.7x43.7x5.7x
Tue, 02 May 2023US$10.3tUS$2.0tUS$265.3b21.3x38.9x5.1x
Thu, 30 Mar 2023US$10.1tUS$2.0tUS$279.2b22.9x36.3x5x
Sat, 25 Feb 2023US$10.7tUS$2.3tUS$295.9b23.2x36.1x4.7x
Mon, 23 Jan 2023US$10.3tUS$2.2tUS$327.5b23.5x31.5x4.6x
Price to Earnings Ratio

31.5x


Total Market Cap: US$10.3tTotal 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 15% 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 Market0.31%
Tech-0.0033%
Electronic Equipment and Components9.20%
Communications3.12%
Semiconductors2.56%
Tech Hardware0.30%
IT-1.53%
Software-4.24%
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 expect its future annual earnings growth (19.0%) to be largely in line with prior year's earnings growth.
  • 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 32.4x.
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 9.4% 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
NVDA NVIDIAUS$187.051.2%
+US$53.2b		35.8%PE45.8x
AVGO BroadcomUS$342.983.2%
+US$49.8b		49.5%PE70.3x
AMD Advanced Micro DevicesUS$227.9211.4%
+US$37.8b		92.4%PE118.5x
AMAT Applied MaterialsUS$319.0813.3%
+US$29.7b		71.1%PE36.2x
APH AmphenolUS$154.2213.2%
+US$22.0b		120.8%PE49.4x

Latest News

INTU
US$554.58
Intuit
7D
-15.0%
1Y
-8.7%
KLAC
US$1,544.96
KLA
7D
10.4%
1Y
104.0%
AMAT
US$319.08
Applied Materials
7D
13.3%
1Y
71.1%
APH
US$154.22
Amphenol
7D
13.2%
1Y
120.8%

Bullish: Analysts Just Made A Decent Upgrade To Their Amphenol Corporation (NYSE:APH) Forecasts

Jan 14
Bullish: Analysts Just Made A Decent Upgrade To Their Amphenol Corporation (NYSE:APH) Forecasts
LRCX
US$217.47
Lam Research
7D
8.2%
1Y
174.5%
AAPL
US$258.21
Apple
7D
-0.3%
1Y
13.1%
CRM
US$233.53
Salesforce
7D
-10.4%
1Y
-27.0%
MSFT
US$456.66
Microsoft
7D
-4.5%
1Y
7.6%

Microsoft (MSFT): When AI Becomes the Operating Layer of Work

Microsoft (NASDAQ: MSFT) is no longer just a software company—it’s becoming the operating layer for modern work. Windows, Office, Azure, and now AI-powered copilots form an interconnected ecosystem that spans individual users, enterprises, and governments.
NVDA
US$187.05
NVIDIA
7D
1.2%
1Y
35.8%
AVGO
US$342.98
Broadcom
7D
3.2%
1Y
49.5%
QCOM
US$161.39
QUALCOMM
7D
-11.3%
1Y
-0.02%

QCOM: Premium Android Execution And AI Infrastructure Optionality Will Shape Balanced Outcomes

Analysts have nudged their fair value estimate for Qualcomm slightly higher to about $193, citing refreshed models that reflect recent price target increases following broad-based QCT strength, expanding premium-tier Android exposure, and growing attention on the company’s AI accelerator and data center opportunities. Analyst Commentary Recent Street research around Qualcomm highlights a mix of enthusiasm around execution in premium Android and AI, alongside caution on broader semiconductor sentiment and AI expectations.
INTC
US$48.32
Intel
7D
6.1%
1Y
124.8%
NOW
US$131.17
ServiceNow
7D
-10.3%
1Y
-38.0%
ADBE
US$304.09
Adobe
7D
-10.3%
1Y
-28.8%

ADBE: Future AI And Marketing Deals Will Reshape Cash Flow Profile

Narrative Update on Adobe Analysts have revised their Adobe fair value estimate from $605.00 to about $585.69. This reflects slightly lower revenue growth and profit margin assumptions, a somewhat higher discount rate, and a partially offsetting increase in the future P/E input in their models.
AMD
US$227.92
Advanced Micro Devices
7D
11.4%
1Y
92.4%

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.
SHOP
US$157.99
Shopify
7D
-6.1%
1Y
52.6%

SHOP: Lofty Multiples And Soft Cash Flow Will Restrain Near-Term Upside

Analysts increased their Shopify fair value estimate from about US$116 to roughly US$139, citing stronger expected revenue growth, a slightly higher assumed future P/E, and recent price target hikes across the Street. They attribute these changes to what they view as solid Q3 execution, despite some concerns around valuation and free cash flow.