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U.S. Tech Sector Analysis

UpdatedNov 29, 2022
DataAggregated Company Financials
Companies1180
  • 7D0.02%
  • 3M-6.2%
  • 1Y-29.3%
  • YTD-30.2%

The Tech is pretty flat in the last 7 days, but NVIDIA has stood out, gaining 3.3%. As for the longer term, the industry has declined 26% in the last year. As for the next few years, earnings are expected to grow by 15% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 29 Nov 2022US$10.2tUS$2.2tUS$332.6b22x30.7x4.6x
Thu, 27 Oct 2022US$10.1tUS$2.2tUS$338.9b19.7x29.9x4.6x
Sat, 24 Sep 2022US$9.9tUS$2.2tUS$347.0b19.3x28.4x4.5x
Mon, 22 Aug 2022US$11.8tUS$2.2tUS$349.1b23x33.7x5.4x
Wed, 20 Jul 2022US$10.6tUS$2.2tUS$359.5b22.9x29.4x4.9x
Fri, 17 Jun 2022US$9.8tUS$2.1tUS$358.5b22.4x27.3x4.6x
Sun, 15 May 2022US$10.9tUS$2.1tUS$357.1b22.7x30.6x5.1x
Tue, 12 Apr 2022US$12.2tUS$2.1tUS$345.7b23.9x35.3x5.9x
Thu, 10 Mar 2022US$12.3tUS$2.0tUS$346.6b25.5x35.4x6x
Sat, 05 Feb 2022US$13.3tUS$2.2tUS$353.4b26.7x37.8x6.2x
Mon, 03 Jan 2022US$14.8tUS$2.1tUS$346.7b29.2x42.7x6.9x
Wed, 01 Dec 2021US$14.5tUS$2.1tUS$342.5b27.9x42.3x6.8x
Fri, 29 Oct 2021US$14.2tUS$2.1tUS$327.3b31.3x43.3x6.9x
Sun, 26 Sep 2021US$14.0tUS$2.0tUS$313.4b33.4x44.5x6.9x
Tue, 24 Aug 2021US$13.7tUS$2.0tUS$310.0b30.8x44.3x6.8x
Wed, 30 Jun 2021US$12.9tUS$2.0tUS$309.3b30.9x41.7x6.5x
Sat, 03 Apr 2021US$11.7tUS$1.9tUS$289.5b31.8x40.3x6.1x
Tue, 05 Jan 2021US$11.4tUS$1.8tUS$256.8b32.2x44.5x6.2x
Fri, 09 Oct 2020US$10.0tUS$1.7tUS$233.1b28.4x42.8x5.9x
Thu, 02 Jul 2020US$8.7tUS$1.6tUS$233.1b29.5x37.4x5.3x
Sun, 05 Apr 2020US$6.6tUS$1.6tUS$240.0b22.4x27.4x4x
Wed, 08 Jan 2020US$7.7tUS$1.6tUS$241.2b30x31.9x4.7x
Price to Earnings Ratio

31.9x


Total Market Cap: US$7.4tTotal Earnings: US$232.7bTotal Revenue: US$1.6tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 37.4x202020212022
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 31.3x which is lower than its 3-year average PE of 37.4x.
  • The 3-year average PS ratio of 5.7x is higher than the industry's current PS ratio of 4.6x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 13% per year over the last three years.
  • Revenues for these companies have grown 12% 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 Market1.26%
Tech0.86%
Software2.15%
Semiconductors1.74%
Electronic Equipment and Components1.60%
IT1.27%
Communications1.10%
Tech Hardware-2.01%
Industry PE
  • Investors are most optimistic about the Software industry, which is trading close to its 3-year average PE ratio of 55.0x.
    • Analysts are expecting annual earnings growth of 20.0%, which is higher than its past year's earnings growth of 2.1% per year.
  • Investors are most pessimistic about the Semiconductors industry, which is trading below its 3-year average of 26.7x.
Forecasted Growth
  • Analysts are most optimistic on the IT industry, expecting annual earnings growth of 21% over the next 5 years.
  • This is better than its past earnings growth rate of 16% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 3.7% 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
NVDA NVIDIAUS$158.273.3%
+US$12.6b
-52.6%PE65.4x
V VisaUS$211.262.4%
+US$10.2b
7.6%PE29.8x
CRM SalesforceUS$153.696.1%
+US$8.8b
-48.2%PE286.5x
MA MastercardUS$344.591.9%
+US$6.1b
6.7%PE33.9x
ORCL OracleUS$81.392.0%
+US$4.2b
-12.4%PE37.8x
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Latest News

MSFT

US$241.76

Microsoft

7D

-0.1%

1Y

-28.2%

AAPL

US$144.22

Apple

7D

-2.6%

1Y

-10.0%

ROP

US$424.03

Roper Technologies

7D

-2.4%

1Y

-11.9%

V

US$211.26

Visa

7D

2.4%

1Y

7.6%

NVDA

US$158.27

NVIDIA

7D

3.3%

1Y

-52.6%

MU

US$55.75

Micron Technology

7D

-2.5%

1Y

-35.3%

ADSK

US$195.35

Autodesk

7D

-5.4%

1Y

-25.2%

AMAT

US$103.47

Applied Materials

7D

-1.6%

1Y

-31.6%

ORCL

US$81.39

Oracle

7D

2.0%

1Y

-12.4%

CRM

US$153.69

Salesforce

7D

6.1%

1Y

-48.2%

NXPI

US$164.10

NXP Semiconductors

7D

-2.8%

1Y

-26.7%

NOW

US$401.93

ServiceNow

7D

3.8%

1Y

-40.3%