Arm Holdings (NASDAQ:ARM) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of
Feb 13
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U.S. Tech Sector Analysis
UpdatedFeb 13, 2025
DataAggregated Company Financials
Companies967
- 7D0.7%
- 3M1.2%
- 1Y24.5%
- YTD0.6%
Last week, the Tech industry hasn't moved much but NVIDIA is up 5.1% in that time. As for the the longer term, the industry is up 25% over the past 12 months. 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 13 Feb 2025 | US$18.4t | US$2.3t | US$370.6b | 32.7x | 49.7x | 8x |
| Sat, 11 Jan 2025 | US$18.4t | US$2.3t | US$367.3b | 32.6x | 50.2x | 8.1x |
| Mon, 09 Dec 2024 | US$18.8t | US$2.3t | US$362.4b | 33.4x | 52x | 8.4x |
| Wed, 06 Nov 2024 | US$17.2t | US$2.2t | US$353.5b | 30.2x | 48.7x | 7.7x |
| Fri, 04 Oct 2024 | US$17.0t | US$2.2t | US$378.1b | 29.1x | 44.9x | 7.8x |
| Sun, 01 Sep 2024 | US$16.8t | US$2.2t | US$378.3b | 29.6x | 44.4x | 7.8x |
| Tue, 30 Jul 2024 | US$16.3t | US$2.1t | US$361.7b | 31.2x | 45.2x | 7.7x |
| Thu, 27 Jun 2024 | US$16.8t | US$2.1t | US$360.6b | 29.8x | 46.6x | 8x |
| Sat, 25 May 2024 | US$15.2t | US$2.1t | US$349.8b | 30.4x | 43.5x | 7.4x |
| Mon, 22 Apr 2024 | US$13.5t | US$2.0t | US$328.6b | 28x | 41x | 6.6x |
| Wed, 20 Mar 2024 | US$14.6t | US$2.0t | US$325.3b | 27.3x | 45x | 7.2x |
| Fri, 16 Feb 2024 | US$14.4t | US$2.0t | US$310.1b | 27.2x | 46.4x | 7.1x |
| Sun, 14 Jan 2024 | US$13.4t | US$2.0t | US$292.0b | 26x | 46x | 6.5x |
| Tue, 12 Dec 2023 | US$13.0t | US$2.1t | US$293.3b | 25.3x | 44.2x | 6.3x |
| Thu, 09 Nov 2023 | US$12.1t | US$2.0t | US$279.6b | 22.6x | 43.2x | 5.9x |
| Sat, 07 Oct 2023 | US$11.8t | US$2.0t | US$269.9b | 24.3x | 43.6x | 5.8x |
| Mon, 04 Sep 2023 | US$12.3t | US$2.0t | US$272.5b | 24.7x | 45x | 6x |
| Wed, 02 Aug 2023 | US$12.4t | US$2.0t | US$262.7b | 24.8x | 47.4x | 6.1x |
| Fri, 30 Jun 2023 | US$11.8t | US$2.0t | US$260.1b | 24.6x | 45.5x | 5.8x |
| Sun, 28 May 2023 | US$11.4t | US$2.0t | US$261.9b | 24.2x | 43.3x | 5.6x |
| Tue, 25 Apr 2023 | US$10.1t | US$2.0t | US$275.1b | 21.2x | 36.7x | 5x |
| Thu, 23 Mar 2023 | US$9.9t | US$2.0t | US$278.5b | 21.8x | 35.5x | 4.9x |
| Sat, 18 Feb 2023 | US$11.0t | US$2.3t | US$297.3b | 24.1x | 36.9x | 4.9x |
| Mon, 16 Jan 2023 | US$10.2t | US$2.2t | US$327.5b | 23.8x | 31.2x | 4.5x |
| Wed, 14 Dec 2022 | US$10.6t | US$2.2t | US$330.5b | 23.2x | 32x | 4.7x |
| Fri, 11 Nov 2022 | US$10.2t | US$2.3t | US$346.0b | 21.8x | 29.5x | 4.5x |
| Sun, 09 Oct 2022 | US$9.6t | US$2.2t | US$345.5b | 19.5x | 27.9x | 4.4x |
| Tue, 06 Sep 2022 | US$10.5t | US$2.2t | US$347.1b | 20.8x | 30.4x | 4.8x |
| Thu, 04 Aug 2022 | US$11.9t | US$2.2t | US$353.7b | 23.9x | 33.7x | 5.5x |
| Sat, 02 Jul 2022 | US$10.2t | US$2.2t | US$359.5b | 21.9x | 28.3x | 4.7x |
| Mon, 30 May 2022 | US$11.3t | US$2.1t | US$359.4b | 25.5x | 31.5x | 5.3x |
| Wed, 27 Apr 2022 | US$11.4t | US$2.1t | US$346.3b | 23.4x | 32.9x | 5.5x |
| Fri, 25 Mar 2022 | US$13.2t | US$2.0t | US$346.0b | 25.7x | 38x | 6.4x |
| Sun, 20 Feb 2022 | US$12.7t | US$2.2t | US$356.1b | 25.6x | 35.8x | 5.9x |
Price to Earnings Ratio
35.8x
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 49.7x which is higher than its 3-year average PE of 40.3x.
- The 3-year average PS ratio of 6.2x is lower than the industry's current PS ratio of 8.0x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 2.1% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the U.S. Tech sector?
| US Market | -0.48% | |
| Tech | 0.74% | |
| Semiconductors | 2.15% | |
| Tech Hardware | 1.89% | |
| IT | -0.22% | |
| Software | -0.50% | |
| Electronic Equipment and Components | -2.00% | |
| Communications | -2.92% | |
Industry PE
- Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 41.4x.
- Analysts are expecting annual earnings growth of 24.2%, which is higher than its past year's earnings growth of 4.3% per year.
- Investors are most pessimistic about the Electronic Equipment and Components industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 25.5x.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings growth rate of 4.3% per year.
- In contrast, the Tech Hardware industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NVDA NVIDIA | US$131.14 | 5.1% +US$154.5b | 77.5% | PE50.9x | |
| AAPL Apple | US$236.87 | 1.9% +US$66.1b | 28.6% | PE37x | |
| AVGO Broadcom | US$236.35 | 1.9% +US$20.4b | 87.2% | PE179.6x | |
| PLTR Palantir Technologies | US$117.39 | 5.5% +US$13.9b | 362.0% | PE578.6x | |
| INTC Intel | US$22.48 | 14.4% +US$12.3b | -49.1% | PS1.8x |
