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U.S. Tech Sector Analysis

UpdatedAug 22, 2025
DataAggregated Company Financials
Companies943
  • 7D-3.6%
  • 3M16.3%
  • 1Y22.3%
  • YTD11.7%

Over the last 7 days, the Tech industry has dropped 3.6%, driven by a pullback from NVIDIA of 3.9%. On the other hand Salesforce is actually up 5.3%. Over the past 12 months, the industry was up 22%. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 22 Aug 2025US$20.6tUS$2.4tUS$418.1b27.2x49.2x8.5x
Sun, 20 Jul 2025US$20.5tUS$2.4tUS$392.6b29.1x52.2x8.6x
Tue, 17 Jun 2025US$18.6tUS$2.4tUS$391.0b27.9x47.5x7.8x
Thu, 15 May 2025US$18.0tUS$2.4tUS$384.0b27x46.8x7.6x
Sat, 12 Apr 2025US$15.0tUS$2.3tUS$386.7b24.5x38.9x6.5x
Mon, 10 Mar 2025US$16.9tUS$2.3tUS$384.4b28.1x44x7.3x
Wed, 05 Feb 2025US$17.7tUS$2.3tUS$371.0b33x47.7x7.7x
Fri, 03 Jan 2025US$18.3tUS$2.3tUS$366.8b31.9x49.9x8.1x
Sun, 01 Dec 2024US$18.2tUS$2.2tUS$361.4b32.9x50.3x8.1x
Tue, 29 Oct 2024US$17.8tUS$2.2tUS$377.9b30.4x47.1x8x
Thu, 26 Sep 2024US$17.1tUS$2.2tUS$375.4b28.9x45.5x7.9x
Sat, 24 Aug 2024US$16.9tUS$2.1tUS$367.4b29.6x45.9x7.9x
Mon, 22 Jul 2024US$16.7tUS$2.1tUS$363.1b30.7x46x7.9x
Wed, 19 Jun 2024US$17.2tUS$2.1tUS$360.7b29.5x47.6x8.1x
Fri, 17 May 2024US$15.0tUS$2.0tUS$336.2b29.7x44.7x7.4x
Sun, 14 Apr 2024US$14.8tUS$2.0tUS$328.5b28x45.1x7.2x
Tue, 12 Mar 2024US$14.6tUS$2.0tUS$325.0b28.3x44.9x7.1x
Thu, 08 Feb 2024US$14.0tUS$2.0tUS$306.8b26x45.5x6.9x
Sat, 06 Jan 2024US$12.8tUS$2.1tUS$292.6b26x43.8x6.2x
Mon, 04 Dec 2023US$12.8tUS$2.1tUS$292.3b25.4x43.8x6.2x
Wed, 01 Nov 2023US$11.3tUS$2.0tUS$277.5b22.7x40.9x5.6x
Fri, 29 Sep 2023US$11.4tUS$2.0tUS$269.7b24.5x42.4x5.6x
Sun, 27 Aug 2023US$11.7tUS$2.0tUS$270.6b24.4x43.3x5.8x
Tue, 25 Jul 2023US$12.2tUS$2.0tUS$258.1b25.4x47.4x6x
Thu, 22 Jun 2023US$11.7tUS$2.0tUS$264.4b24.7x44.3x5.8x
Sat, 20 May 2023US$10.8tUS$2.0tUS$260.9b23.4x41.4x5.3x
Mon, 17 Apr 2023US$10.2tUS$2.0tUS$274.9b22.6x37.2x5x
Wed, 15 Mar 2023US$10.8tUS$2.3tUS$298.6b22.1x36.1x4.7x
Fri, 10 Feb 2023US$11.1tUS$2.2tUS$314.2b24x35.2x4.9x
Sun, 08 Jan 2023US$9.8tUS$2.2tUS$327.4b22x29.8x4.3x
Tue, 06 Dec 2022US$10.4tUS$2.2tUS$329.3b22.8x31.5x4.6x
Thu, 03 Nov 2022US$9.6tUS$2.2tUS$333.1b20x28.9x4.3x
Sat, 01 Oct 2022US$9.5tUS$2.2tUS$346.0b19.1x27.4x4.3x
Mon, 29 Aug 2022US$11.2tUS$2.2tUS$346.2b22.5x32.2x5.1x
Price to Earnings Ratio

32.2x


Total Market Cap: US$11.2tTotal Earnings: US$346.2bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 42.6x202320242025
Current Industry PE
  • Investors are optimistic on the American Information Technology industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 49.2x which is higher than its 3-year average PE of 42.6x.
  • The 3-year average PS ratio of 6.5x is lower than the industry's current PS ratio of 8.5x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 6.5% per year over the last three years.
  • Revenues for these companies have grown 3.7% 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-1.60%
Tech-3.57%
IT-0.60%
Electronic Equipment and Components-2.65%
Communications-2.74%
Software-3.04%
Tech Hardware-3.36%
Semiconductors-4.65%
Industry PE
  • Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 47.2x.
    • Analysts are expecting annual earnings growth of 23.0%, which is higher than its past year's earnings decline of 0.4% per year.
  • 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 30.4x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 23% over the next 5 years.
  • This is better than its past earnings decline of 0.4% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.3% 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
CRM SalesforceUS$245.835.3%
+US$11.9b		-4.9%PE37.9x
PANW Palo Alto NetworksUS$183.325.6%
+US$6.5b		4.9%PE108x
TXN Texas InstrumentsUS$200.713.6%
+US$6.4b		-1.5%PE36.4x
NOW ServiceNowUS$876.973.1%
+US$5.4b		6.8%PE109.6x
ACN AccentureUS$253.993.2%
+US$4.9b		-23.2%PE20x

Latest News

ADI
US$246.95
Analog Devices
7D
4.5%
1Y
11.3%
PLTR
US$156.18
Palantir Technologies
7D
-13.7%
1Y
389.3%
AMAT
US$159.84
Applied Materials
7D
-15.1%
1Y
-20.2%
IBM
US$239.40
International Business Machines
7D
1.0%
1Y
22.2%

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Aug 20
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ADBE
US$353.43
Adobe
7D
1.4%
1Y
-36.6%
CRM
US$245.83
Salesforce
7D
5.3%
1Y
-4.9%
NOW
US$876.97
ServiceNow
7D
3.1%
1Y
6.8%
PANW
US$183.32
Palo Alto Networks
7D
5.6%
1Y
4.9%
ACN
US$253.99
Accenture
7D
3.2%
1Y
-23.2%
NVDA
US$174.98
NVIDIA
7D
-3.9%
1Y
41.4%

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Commonly, public misconceptions mislead the market to poorly represent a company's true worth. The saying says "if it sounds too good to be true, it's most likely not true" rings in my ear when evaluating the future of NVIDIA.
MSFT
US$504.24
Microsoft
7D
-3.5%
1Y
21.3%
ORCL
US$233.16
Oracle
7D
-4.8%
1Y
68.9%
AAPL
US$224.90
Apple
7D
-3.4%
1Y
0.2%
AMD
US$163.71
Advanced Micro Devices
7D
-7.8%
1Y
5.6%

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Advanced Micro Devices’ fair value estimate has increased, primarily reflecting modest improvements in net profit margin and revenue growth forecasts, resulting in a higher consensus analyst price target rising from $155.96 to $178.78. What's in the News AMD guided Q3 2025 revenue to ~$8.7B, implying ~28% YoY and ~13% sequential growth.
AVGO
US$289.60
Broadcom
7D
-6.9%
1Y
78.4%
TXN
US$200.71
Texas Instruments
7D
3.6%
1Y
-1.5%

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Aug 01
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