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U.S. Tech Sector Analysis

UpdatedAug 22, 2026
DataAggregated Company Financials
Companies981
  • 7D-3.5%
  • 3M1.3%
  • 1Y31.2%
  • YTD21.3%

Over the last 7 days, the Tech industry has dropped 3.7%, driven by a pullback from NVIDIA of 4.6%. This takes the industry's 12 month performance to a gain of 32%. 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
Sat, 22 Aug 2026US$21.9tUS$3.0tUS$637.1b33.3x34.4x7.3x
Mon, 20 Jul 2026US$26.1tUS$2.9tUS$645.1b33.1x40.4x9x
Wed, 17 Jun 2026US$22.3tUS$2.8tUS$618.5b34.8x36x7.8x
Fri, 15 May 2026US$20.9tUS$2.8tUS$570.6b35.2x36.7x7.5x
Sun, 12 Apr 2026US$21.8tUS$2.7tUS$555.0b31.2x39.3x8.1x
Tue, 10 Mar 2026US$21.2tUS$2.7tUS$542.3b30.2x39x7.9x
Thu, 05 Feb 2026US$21.5tUS$2.6tUS$530.6b28.7x40.5x8.2x
Sat, 03 Jan 2026US$22.5tUS$2.6tUS$506.7b31x44.3x8.7x
Mon, 01 Dec 2025US$22.6tUS$2.6tUS$494.1b30.2x45.7x8.8x
Wed, 29 Oct 2025US$23.7tUS$2.5tUS$463.2b30.2x51.2x9.5x
Fri, 26 Sep 2025US$22.2tUS$2.5tUS$437.8b31.3x50.7x9x
Sun, 24 Aug 2025US$20.8tUS$2.4tUS$418.9b28.4x49.7x8.6x
Tue, 22 Jul 2025US$20.5tUS$2.4tUS$392.6b29.2x52.2x8.6x
Thu, 19 Jun 2025US$18.7tUS$2.4tUS$391.4b27.5x47.8x7.8x
Sat, 17 May 2025US$18.1tUS$2.4tUS$385.4b27x47x7.7x
Mon, 14 Apr 2025US$15.4tUS$2.3tUS$386.7b24.5x39.8x6.6x
Wed, 12 Mar 2025US$16.1tUS$2.3tUS$384.9b27.3x41.9x6.9x
Fri, 07 Feb 2025US$18.3tUS$2.3tUS$370.5b33.8x49.5x8x
Sun, 05 Jan 2025US$18.6tUS$2.3tUS$366.9b32.7x50.7x8.2x
Tue, 03 Dec 2024US$18.2tUS$2.2tUS$361.3b33.3x50.3x8.1x
Thu, 31 Oct 2024US$17.9tUS$2.2tUS$376.6b29.9x47.5x8.1x
Sat, 28 Sep 2024US$17.2tUS$2.2tUS$378.0b29.7x45.6x7.9x
Mon, 26 Aug 2024US$17.0tUS$2.1tUS$367.7b29.6x46.3x8x
Wed, 24 Jul 2024US$17.0tUS$2.1tUS$363.1b30.8x46.8x8x
Fri, 21 Jun 2024US$17.3tUS$2.1tUS$360.6b29.9x47.9x8.2x
Sun, 19 May 2024US$14.9tUS$2.0tUS$337.1b29.9x44.4x7.3x
Tue, 16 Apr 2024US$14.5tUS$2.0tUS$328.5b27.6x44.3x7.1x
Thu, 14 Mar 2024US$14.9tUS$2.0tUS$325.2b28.1x45.7x7.3x
Sat, 10 Feb 2024US$14.6tUS$2.0tUS$308.2b26.8x47.2x7.2x
Mon, 08 Jan 2024US$12.8tUS$2.1tUS$292.6b26x43.9x6.3x
Wed, 06 Dec 2023US$12.7tUS$2.1tUS$292.7b25x43.3x6.2x
Fri, 03 Nov 2023US$11.5tUS$2.0tUS$277.7b22.8x41.6x5.7x
Sun, 01 Oct 2023US$11.5tUS$2.0tUS$269.8b24.5x42.5x5.6x
Tue, 29 Aug 2023US$11.7tUS$2.0tUS$270.6b24.4x43.3x5.8x
Price to Earnings Ratio

43.3x


Total Market Cap: US$11.7tTotal Earnings: US$270.6bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.8x202420252026
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 34.6x which is lower than its 3-year average PE of 44.8x.
  • 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 33% 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-1.53%
Tech-3.51%
Tech Hardware-0.33%
Software-1.74%
IT-2.87%
Communications-3.01%
Semiconductors-5.46%
Electronic Equipment and Components-8.89%
Industry PE
  • Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 36.3x.
    • Analysts are expecting annual earnings growth of 24.3%, which is higher than its past year's earnings growth of 14.3% per year.
  • Investors are most pessimistic about the Semiconductors industry, which is trading below its 3-year average of 53.5x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 29% 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 9.7% 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
AAPL AppleUS$309.351.1%
+US$49.9b		35.8%PE35x
PLTR Palantir TechnologiesUS$179.943.4%
+US$14.2b		13.4%PE143.3x
MRVL Marvell TechnologyUS$237.046.8%
+US$13.4b		224.7%PE82.3x
CRM SalesforceUS$209.176.6%
+US$10.6b		-15.8%PE21.4x
MSTR StrategyUS$119.2528.2%
+US$10.1b		-66.7%PS91.9x

Latest News

NVDA
US$214.75
NVIDIA
7D
-4.6%
1Y
20.7%
MRVL
US$237.04
Marvell Technology
7D
6.8%
1Y
224.7%
ARM
US$243.32
Arm Holdings
7D
-12.9%
1Y
76.4%
Seeking Alpha • 12h

Arm Holdings: What The $25 Billion Target Actually Requires

Summary Arm Holdings trades at extreme multiples, reflecting high expectations for its move into fabless AI data center CPUs (AGI CPUs). ARM's royalty capture from AI buildout remains low (~1.7%), and aggressive growth in royalties and AGI CPU sales is required to justify the current valuation. Management's FY2031 targets—$25B revenue, $9+ EPS—demand significant royalty rate expansion, and rapid AGI CPU ramp. Although its cloud compute TAM could be understated. The 20% royalty CAGR rests on one demanding assumption. At $250, the stock is priced beyond what management has guided even with optimistic margin/sales growth assumptions. Read the full article on Seeking Alpha
ACN
US$185.28
Accenture
7D
4.7%
1Y
-28.5%
Seeking Alpha • 21h

Accenture: Bears Are On Wrong Side Of High-ARR AI SaaS-Ification Trend

Summary Accenture plc is undergoing a strategic shift toward high-margin SaaS and OT cybersecurity, decoupling revenue from headcount and targeting a $240B mid-market TAM. I upgrade ACN to Strong Buy, citing a compressed ~13.1x forward P/E versus a potential re-rating to ~23.15x as SaaS revenue grows and platform integration accelerates. ACN is deploying $9B in M&A, acquiring OT cybersecurity assets at ~20x EV/ARR, which, if integrated smoothly, could drive 50%+ ARR growth and margin expansion. Key risks include AI hardware CapEx crowding-out, M&A integration challenges, and short-term consulting revenue pressure; monitoring Edge adoption, book-to-bill, and margin guidance is critical. Read the full article on Seeking Alpha
NOW
US$128.48
ServiceNow
7D
3.6%
1Y
-27.6%
Seeking Alpha • 22h

ServiceNow: The Growth Story Isn't Done Yet

Summary ServiceNow has surged 50% since my last update, outperforming the benchmark's 8% rise. Despite NOW trading at a 31x forward P/E, a 35% sector premium, I view the valuation as justified. Multi-year catalysts in AI, cloud, and SaaS markets continue to support robust demand and revenue acceleration. My buy rating remains unchanged, supported by solid fundamentals and no perceived structural issues. Read the full article on Seeking Alpha
DELL
US$442.08
Dell Technologies
7D
-9.9%
1Y
237.9%
Seeking Alpha • 23h

I'm Downgrading Dell Ahead Of Q2 Earnings (Preview)

Summary Dell Technologies (DELL) is downgraded from Buy to Hold ahead of Q2 2027 earnings due to valuation concerns. DELL’s AI infrastructure and storage growth, plus a looming PC refresh cycle, have driven rapid top-line and EPS expansion. Much of DELL’s operational upside appears priced in, with the stock trading at ~19x FY2028 earnings and a forward PEG of 1x. I prefer to wait for a correction or stronger guidance before increasing exposure, as further upside may be limited near term. Read the full article on Seeking Alpha
MSFT
US$483.24
Microsoft
7D
-2.5%
1Y
-4.7%
AMD
US$473.25
Advanced Micro Devices
7D
-8.0%
1Y
182.1%
AAPL
US$309.35
Apple
7D
1.1%
1Y
35.8%
Seeking Alpha • Aug 21

Apple's Immunity To Headwinds Is Fading (Rating Downgrade)

Summary Apple is downgraded to a sell rating due to unjustified valuation premiums amid deteriorating growth and margin prospects. Q3 results were robust, with 16.36% YoY revenue growth and significant margin expansion, but Q4 guidance signals deceleration and potential gross margin contraction. Cost pressures, especially in memory and components, threaten future profitability, while attempts to mitigate them via CXMT chips face political and pricing obstacles. Potential catalysts like the Alibaba AI partnership and new product launches exist, but rising risks and premium multiples outweigh the positives. Read the full article on Seeking Alpha
AVGO
US$368.45
Broadcom
7D
-6.2%
1Y
25.3%
Seeking Alpha • Aug 20

Broadcom: Marvell Panic Causes A Huge Buying Opportunity

Summary Broadcom Inc. remains a prime beneficiary of the AI boom, with robust profit growth expected for years. The recent selloff following the Marvell-Alphabet deal is seen as an overreaction; the partnership does not threaten AVGO’s position or growth trajectory. AVGO’s valuation is compelling, with downside risk already priced in even under conservative growth assumptions. Even with bearish growth scenarios, AVGO offers attractive annualized returns of 12%+, with potential for much higher upside if consensus is met or exceeded. Read the full article on Seeking Alpha
MSTR
US$119.25
Strategy
7D
28.2%
1Y
-66.7%
Seeking Alpha • Aug 20

Strategy Doubles Down On Its Aggressive Defense Of 12.6% Yielding STRC

Summary Strategy has aggressively defended its STRC preferreds, restoring prices close to the $100 per share redemption anchor after a deep 25% discount in June. STRC now offers a 13.6% dividend yield, about 900 basis points above the 10-year Treasury, reflecting its unique risk profile. MSTR’s $63 billion liquidity wall, from USD reserves and BTC holdings, underpins ongoing STRC repurchases and dividend stability. I maintain a Hold rating on STRC on the back of its high yield and the recent defensive actions. The security is speculative, and liabilities are material. Read the full article on Seeking Alpha
INTC
US$90.07
Intel
7D
-12.1%
1Y
263.2%
Seeking Alpha • Aug 20

Intel: Why I Am Not Buying The Dip

Summary Intel delivered impressive second-quarter revenue growth of 25% year-over-year alongside strong gross margin expansion and doubled consensus EPS estimates today. Data Center and AI momentum surged 59% annually, benefiting from server CPU demand, higher average selling prices, and 40% margins. Shareholder dilution from pricing 210.5 million new shares, elevated capital expenditures, and ongoing foundry operating losses create near-term fundamental headwinds. Long-term structural catalysts include Intel 14A foundry customer adoption, Tesla partnerships, EMIB advanced packaging scaling, and expanding agentic CPU demand. Extreme valuation multiples compared to semiconductor peers make execution risks asymmetric, warranting a Hold rating until shares pull back significantly. Read the full article on Seeking Alpha
PLTR
US$179.94
Palantir Technologies
7D
3.4%
1Y
13.4%
Narrative Update • Aug 19

PLTR: Record AI Wins Will Likely Struggle To Justify Lofty Expectations

Palantir Technologies' fair value estimate has been raised by analysts from $96.21 to $99.77. The change reflects updated assumptions for slightly higher revenue growth, a modestly higher discount rate, resilient profit margins and Street research that highlights what analysts describe as exceptional recent results, stronger U.S. commercial momentum and expanding AI partnerships.
INTU
US$367.00
Intuit
7D
6.2%
1Y
-44.6%
Narrative Update • Aug 18

INTU: AI Restructuring And Workforce Reset Will Support Future Multiple Re Rating

Intuit's analyst price target has shifted lower, with the fair value estimate moving from $488.17 to $449.20 as analysts build in slightly more conservative assumptions around growth, margins, and future P/E multiples in advance of potential guidance resets into fiscal 2027. Analyst Commentary Recent Street commentary on Intuit highlights a split view on the stock.
STX
US$850.00
Seagate Technology Holdings
7D
-12.7%
1Y
433.9%
Narrative Update • Aug 18

STX: AI Storage Pricing Tailwind Will Eventually Confront HDD Cycle Reset Risk

Analysts have raised the Seagate Technology Holdings fair value estimate from $680.00 to about $705.49, citing higher projected revenue growth, stronger profit margins supported by improving hard disk drive pricing, and a lower assumed future P/E multiple in line with recent price target increases across the Street. Analyst Commentary Street research on Seagate Technology Holdings in 2026 has leaned positive, with many firms lifting price targets after recent earnings and guidance updates.
CRM
US$209.17
Salesforce
7D
6.6%
1Y
-15.8%
Seeking Alpha • Aug 14

Salesforce: Ride The Buyback Boost

Summary Salesforce, Inc. offers a compelling dip-buying opportunity as SaaS sector sentiment rebounds and private equity eyes peers like Workday. CRM trades at just 14x forward EPS, presenting relative value versus Workday, which is attracting buyout interest at a higher multiple. Massive $27.1 billion share buybacks and a 23% net buyback yield, position CRM for significant EPS growth, despite increased debt. With FQ2 guidance for 10–11% revenue growth and robust free cash flow, the stock remains attractive below all-time highs amid AI-driven enterprise demand. Read the full article on Seeking Alpha