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U.S. Tech Sector Analysis

UpdatedJul 15, 2026
DataAggregated Company Financials
Companies996
  • 7D2.3%
  • 3M15.7%
  • 1Y31.1%
  • YTD18.1%

Over the last 7 days, the Tech industry has risen 2.3%, driven by gains from NVIDIA of 7.6%. During this same period, the International Business Machines underperformed, falling 29%. This takes the industry's 12 month performance to a gain of 31%. As for the next few years, earnings are expected to grow by 22% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 15 Jul 2026US$26.6tUS$2.9tUS$645.3b34.2x41.2x9.2x
Fri, 12 Jun 2026US$26.1tUS$2.8tUS$618.2b35.4x42.2x9.2x
Sun, 10 May 2026US$20.6tUS$2.8tUS$570.4b35.4x36.2x7.4x
Tue, 07 Apr 2026US$20.8tUS$2.7tUS$554.9b30x37.6x7.7x
Thu, 05 Mar 2026US$21.2tUS$2.7tUS$539.8b30.3x39.3x7.9x
Sat, 31 Jan 2026US$22.4tUS$2.6tUS$528.5b30.2x42.3x8.6x
Mon, 29 Dec 2025US$22.9tUS$2.6tUS$506.9b30.7x45.1x8.8x
Wed, 26 Nov 2025US$22.2tUS$2.6tUS$492.8b29.1x45x8.6x
Fri, 24 Oct 2025US$22.7tUS$2.5tUS$442.4b30.4x51.2x9x
Sun, 21 Sep 2025US$22.2tUS$2.5tUS$435.4b31.4x51x9x
Tue, 19 Aug 2025US$21.1tUS$2.4tUS$418.3b27.8x50.5x8.7x
Thu, 17 Jul 2025US$20.3tUS$2.4tUS$393.2b29.1x51.6x8.5x
Sat, 14 Jun 2025US$18.7tUS$2.4tUS$391.0b27.5x47.9x7.9x
Mon, 12 May 2025US$16.8tUS$2.3tUS$383.7b25.7x43.7x7.1x
Wed, 09 Apr 2025US$14.1tUS$2.3tUS$386.8b23.6x36.5x6.1x
Fri, 07 Mar 2025US$17.0tUS$2.3tUS$379.3b28.1x44.9x7.3x
Sun, 02 Feb 2025US$18.0tUS$2.3tUS$370.8b33.3x48.5x7.9x
Tue, 31 Dec 2024US$18.7tUS$2.3tUS$366.8b32x51x8.3x
Thu, 28 Nov 2024US$18.2tUS$2.2tUS$361.4b33x50.3x8.1x
Sat, 26 Oct 2024US$17.7tUS$2.2tUS$378.1b30.6x46.8x8x
Mon, 23 Sep 2024US$17.0tUS$2.2tUS$375.4b28.8x45.2x7.8x
Wed, 21 Aug 2024US$17.1tUS$2.1tUS$368.2b29.7x46.3x8x
Fri, 19 Jul 2024US$17.0tUS$2.1tUS$363.1b31.3x46.8x8x
Sun, 16 Jun 2024US$17.0tUS$2.1tUS$360.7b29.1x47.1x8x
Tue, 14 May 2024US$14.6tUS$2.0tUS$337.0b29.5x43.3x7.2x
Thu, 11 Apr 2024US$14.6tUS$2.0tUS$328.6b28.1x44.4x7.1x
Sat, 09 Mar 2024US$14.7tUS$2.0tUS$324.8b28.3x45.1x7.2x
Mon, 05 Feb 2024US$14.2tUS$2.1tUS$305.9b26.6x46.3x6.9x
Wed, 03 Jan 2024US$13.1tUS$2.1tUS$292.7b25.9x44.6x6.4x
Fri, 01 Dec 2023US$12.8tUS$2.1tUS$292.6b24.9x43.7x6.2x
Sun, 29 Oct 2023US$11.2tUS$2.0tUS$278.4b22.2x40.1x5.5x
Tue, 26 Sep 2023US$11.5tUS$2.0tUS$273.1b24.7x42.1x5.6x
Thu, 24 Aug 2023US$11.9tUS$2.0tUS$264.9b24.3x44.9x5.9x
Sat, 22 Jul 2023US$12.2tUS$2.0tUS$258.1b25.5x47.3x6x
Price to Earnings Ratio

47.3x


Total Market Cap: US$12.2tTotal Earnings: US$258.1bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.2x202420252026
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 41.2x which is lower than its 3-year average PE of 45.2x.
  • The 3-year average PS ratio of 7.6x is lower than the industry's current PS ratio of 9.2x.
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 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 Market0.22%
Tech2.28%
Communications5.80%
Semiconductors5.07%
Tech Hardware2.07%
Electronic Equipment and Components1.21%
Software-1.27%
IT-10.03%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 34.7x.
    • Analysts are expecting annual earnings growth of 26.8%, which is higher than its past year's earnings growth of 10.1% per year.
  • Investors are most pessimistic about the Software industry, which is trading below its 3-year average of 50.2x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 28% 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 12% 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$211.807.6%
+US$360.2b		24.1%PE32.1x
AVGO BroadcomUS$389.114.9%
+US$87.2b		38.5%PE63.1x
AAPL AppleUS$314.861.4%
+US$61.7b		50.6%PE37.7x
AMD Advanced Micro DevicesUS$548.136.2%
+US$52.2b		252.2%PE181.2x
MU Micron TechnologyUS$983.124.8%
+US$50.5b		718.5%PE22x

Latest News

IBM
US$217.07
International Business Machines
7D
-29.1%
1Y
-23.2%
AAPL
US$314.86
Apple
7D
1.4%
1Y
50.6%
MSFT
US$384.93
Microsoft
7D
-1.0%
1Y
-23.9%
ORCL
US$127.94
Oracle
7D
-9.6%
1Y
-45.5%
MU
US$983.12
Micron Technology
7D
4.8%
1Y
718.5%
Seeking Alpha • 6h

Micron: The Dangerous Disconnect Between Physical Wafer Volume And HBM Hype

Summary Micron Technology is currently valued at over $1.1 trillion, driven by AI memory demand and peak commodity pricing. MU's revenue surge is fueled by a temporary price spike, while physical production has only increased 1.5x since 2023. By 2028–2029, new global memory capacity will likely end the current supply deficit, normalizing prices and compressing margins. I recommend a Hold rating, advising profit-taking and position reduction as MU's valuation does not reflect its cyclical, commodity-based business. Read the full article on Seeking Alpha
LRCX
US$346.10
Lam Research
7D
6.1%
1Y
242.4%
DELL
US$457.54
Dell Technologies
7D
9.6%
1Y
264.0%
Seeking Alpha • 20h

Dell Technologies And Its Real Value

Summary Dell Technologies has surged 120% in 2024, but current valuations appear significantly overpriced relative to multiple valuation models. AI infrastructure demand drives DELL’s backlog and earnings growth, yet gross margins remain below preferred levels and short-term liquidity is limited. DELL’s net debt and leverage have improved, but negative shareholder equity make this company more challenging to analyze. Despite strong cash generation and ROIC, DELL’s recent exponential share price growth appears unsustainable, warranting investor caution. Read the full article on Seeking Alpha
NVDA
US$211.80
NVIDIA
7D
7.6%
1Y
24.1%
Seeking Alpha • Jul 14

Nvidia: The Valuation Gap May Collapse With This Q2 Catalyst, Lifting The Stock

Summary Nvidia Corporation remains a compelling investment opportunity, make even more appealing for its massive valuation gap. This valuation gap belies its unmatched revenue growth trajectory, supporting a continued bullish outlook. Risks include potential supply chain constraints and competitive pressures, but NVDA's execution and innovation mitigate these concerns. I maintain a strong conviction in NVDA's long-term upside, supported by secular AI trends resulting in superior growth at the top line. Read the full article on Seeking Alpha
APP
US$448.98
AppLovin
7D
-15.0%
1Y
27.2%
Seeking Alpha • Jul 14

AppLovin: Amazing Buying Opportunity On The Recent Selling Frenzy

Summary AppLovin (APP) remains a strong buy as it navigates a recent selling frenzy as it launches its self-serve ad engine into general availability. APP's growth hinges on expanding beyond gaming into the much larger consumer and e-commerce verticals, furthering its TAM and sustaining 20–30% long-term growth. Margins remain robust (84%+ adj. EBITDA), but further expansion is constrained by data center and AI costs as APP scales into new verticals. Valuation has compressed to a PEG of 0.8x, reflecting steep execution risks. Yet price action and fundamentals support an uptrending bias if June levels hold. I explain why this is the time for us to consider loading up before the market returns from its hangover. Read the full article on Seeking Alpha
NOW
US$104.85
ServiceNow
7D
-5.3%
1Y
-45.2%
Seeking Alpha • Jul 14

ServiceNow: Software Rebound Is On, But This Isn't The Market's Best Deal (Rating Upgrade)

Summary ServiceNow has enjoyed a ~30% rally from its trough levels near $80, though the stock remains down ~25% year to date. The company remains a strong performer balancing ~20% growth alongside 30%+ pro forma margins, positioning the stock in the upper echelon of the software sector. Peers like Salesforce and Workday, however, trade at much lower valuations than ServiceNow's ~6x forward revenue. I'm upgrading NOW to a neutral rating, reflecting my optimism that software stocks will continue rebounding; but this isn't the sector's best opportunity. Read the full article on Seeking Alpha
AMAT
US$595.70
Applied Materials
7D
7.4%
1Y
198.9%
INTC
US$107.76
Intel
7D
-2.4%
1Y
370.2%
Narrative Update • Jul 13

INTC: AI Server CPU Demand And Foundry Wins Will Drive Repricing

Intel's fair value estimate has been raised from $151.69 to $167.58 as analysts incorporate higher long term assumptions for AI driven server CPU demand, advanced packaging and the growing visibility of the foundry business into their models and price targets. Analyst Commentary Recent research coverage around Intel highlights a clear shift toward higher fair value assumptions, with a series of upward price target revisions and multiple upgrades tied to AI driven server CPU demand, advanced packaging and the expanding foundry story.
ARM
US$281.17
Arm Holdings
7D
-6.4%
1Y
91.1%
Narrative Update • Jul 12

ARM: Agentic AI CPU Euphoria Will Struggle To Sustain Premium Earnings Multiple

Arm Holdings' fair value estimate has been updated from $99.75 to $125.00 as analysts cite higher expected revenue growth from agentic AI related CPU demand, even while assuming a lower profit margin and a higher future P/E multiple in line with a series of sharply higher Street price targets. Analyst Commentary Street research on Arm Holdings has turned increasingly focused on how agentic AI could reshape CPU demand, but not every analyst is leaning bullish.
AVGO
US$389.11
Broadcom
7D
4.9%
1Y
38.5%
AMD
US$548.13
Advanced Micro Devices
7D
6.2%
1Y
252.2%
MRVL
US$222.44
Marvell Technology
7D
-3.6%
1Y
207.2%
Narrative Update • Jul 09

MRVL: AI Data Center Networking And Optics Will Drive Future Upside

Marvell Technology's updated analyst fair value estimate has shifted materially higher to about $372 from roughly $250, as analysts point to a larger AI data center and optical interconnect opportunity that is reflected in higher revenue growth assumptions and a richer future P/E multiple. Analyst Commentary Recent Street research around Marvell Technology has turned more constructive, with a cluster of higher fair value estimates and price targets that connect directly to the AI data center story, optical interconnect, and custom silicon programs.