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U.S. Tech Sector Analysis

UpdatedDec 27, 2025
DataAggregated Company Financials
Companies986
  • 7D1.6%
  • 3M2.8%
  • 1Y21.9%
  • YTD24.5%

The Tech industry is up 1.6% in the last week, with NVIDIA up 5.3%. This means that the industry has gained 21% over the past year. Earnings are forecast to grow by 20% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 27 Dec 2025US$22.8tUS$2.6tUS$506.9b30.7x45.1x8.8x
Mon, 24 Nov 2025US$21.6tUS$2.6tUS$492.6b28.5x43.8x8.4x
Wed, 22 Oct 2025US$22.9tUS$2.5tUS$439.2b31.6x52x9.1x
Fri, 19 Sep 2025US$21.8tUS$2.5tUS$435.4b30.9x50x8.8x
Sun, 17 Aug 2025US$21.1tUS$2.4tUS$418.3b27.8x50.5x8.7x
Tue, 15 Jul 2025US$20.0tUS$2.4tUS$393.2b28.7x50.9x8.4x
Thu, 12 Jun 2025US$18.7tUS$2.4tUS$391.8b28x47.6x7.8x
Sat, 10 May 2025US$16.8tUS$2.3tUS$383.7b25.7x43.7x7.1x
Mon, 07 Apr 2025US$14.1tUS$2.3tUS$386.8b24.1x36.4x6x
Wed, 05 Mar 2025US$17.0tUS$2.3tUS$378.7b28.7x44.8x7.3x
Fri, 31 Jan 2025US$18.2tUS$2.3tUS$370.8b33.5x49x8x
Sun, 29 Dec 2024US$18.7tUS$2.3tUS$366.9b32.1x51x8.3x
Tue, 26 Nov 2024US$18.1tUS$2.2tUS$361.3b33.5x50.2x8.1x
Thu, 24 Oct 2024US$17.9tUS$2.2tUS$377.9b29.7x47.4x8.3x
Sat, 21 Sep 2024US$17.1tUS$2.2tUS$375.4b28.7x45.4x7.9x
Mon, 19 Aug 2024US$16.8tUS$2.1tUS$368.0b29.1x45.7x7.9x
Wed, 17 Jul 2024US$17.7tUS$2.1tUS$363.1b32x48.6x8.4x
Fri, 14 Jun 2024US$16.9tUS$2.1tUS$361.8b29.5x46.7x8x
Sun, 12 May 2024US$14.5tUS$2.0tUS$337.1b30.1x43x7.1x
Tue, 09 Apr 2024US$14.6tUS$2.0tUS$328.6b28.6x44.4x7.1x
Thu, 07 Mar 2024US$14.5tUS$2.0tUS$327.8b28.1x44.2x7.1x
Sat, 03 Feb 2024US$14.2tUS$2.1tUS$305.8b26.6x46.3x6.9x
Mon, 01 Jan 2024US$13.4tUS$2.1tUS$292.6b26.1x45.9x6.5x
Wed, 29 Nov 2023US$12.7tUS$2.0tUS$290.3b24.9x43.8x6.2x
Fri, 27 Oct 2023US$11.1tUS$2.0tUS$279.1b22.3x39.9x5.5x
Sun, 24 Sep 2023US$11.5tUS$2.0tUS$273.1b24.4x41.9x5.6x
Tue, 22 Aug 2023US$11.4tUS$2.0tUS$264.5b24.1x43.2x5.6x
Thu, 20 Jul 2023US$12.5tUS$2.0tUS$257.8b25.5x48.6x6.2x
Sat, 17 Jun 2023US$11.9tUS$2.0tUS$264.4b24.9x45.2x5.9x
Mon, 15 May 2023US$10.4tUS$2.0tUS$262.0b22.8x39.5x5.1x
Wed, 12 Apr 2023US$10.1tUS$2.0tUS$275.0b22.8x36.9x5x
Fri, 10 Mar 2023US$10.9tUS$2.3tUS$298.3b22.3x36.4x4.8x
Sun, 05 Feb 2023US$11.2tUS$2.3tUS$320.1b25.4x34.8x5x
Tue, 03 Jan 2023US$9.8tUS$2.2tUS$327.4b21.8x29.8x4.3x
Price to Earnings Ratio

29.8x


Total Market Cap: US$9.8tTotal Earnings: US$327.4bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.8x20242025
Current Industry PE
  • Investors are relatively neutral on the American Information Technology industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 44.8x.
  • The 3-year average PS ratio of 7.0x is lower than the industry's current PS ratio of 8.8x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 16% per year over the last three years.
  • Revenues for these companies have grown 4.8% 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 Market1.24%
Tech1.57%
Semiconductors3.77%
Electronic Equipment and Components1.12%
Communications0.77%
Software0.29%
Tech Hardware-0.08%
IT-0.13%
Industry PE
  • Investors are most optimistic about the IT industry even though it's trading below its 3-year average PE ratio of 68.9x.
    • Analysts are expecting annual earnings growth of 19.6%, which is higher than its past year's earnings growth of 17.1% 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 32.1x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 4.7% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 8.9% 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$190.535.3%
+US$231.8b		39.1%PE46.7x
AVGO BroadcomUS$352.133.5%
+US$55.8b		45.7%PE72.2x
MU Micron TechnologyUS$284.797.1%
+US$21.2b		221.3%PE26.9x
ORCL OracleUS$197.993.1%
+US$17.3b		17.2%PE36.9x
MSFT MicrosoftUS$487.710.4%
+US$13.3b		13.3%PE34.6x

Latest News

ORCL
US$197.99
Oracle
7D
3.1%
1Y
17.2%
AVGO
US$352.13
Broadcom
7D
3.5%
1Y
45.7%
STX
US$286.22
Seagate Technology Holdings
7D
-3.4%
1Y
227.5%

STX: AI Data Demand And Tighter Supply Will Support Durable Margin Expansion

Analysts have nudged their fair value estimate for Seagate Technology Holdings higher to approximately $297 per share from about $289, citing sustained HDD pricing power, structurally stronger nearline demand tied to AI infrastructure, and a higher expected earnings multiple supported by disciplined capacity additions and accelerating HAMR adoption. Analyst Commentary Recent Street research reflects a broadly positive reassessment of Seagate valuation, with multiple price target increases clustered across a relatively short period.
INTC
US$36.20
Intel
7D
-1.7%
1Y
78.3%

INTC: Foundry And AI Execution Will Drive Confidence In Turnaround Narrative

Analysts have lifted their Intel fair value estimate to about $52 from roughly $27, reflecting improving execution, early but encouraging foundry progress, and a clearer AI strategy, even as they continue to flag rich valuation and execution risk. Analyst Commentary Recent Street research reflects a more constructive, but still guarded, view on Intel as bullish analysts acknowledge improving execution and a clearer AI and foundry strategy.
CRM
US$266.08
Salesforce
7D
2.4%
1Y
-21.4%

CRM: Expanding AI Customer Engagement Will Drive Durable Long Term Shareholder Value

Analysts have inched up their Salesforce price target, with fair value rising roughly $3 to about $330 per share, as modestly stronger long term revenue growth assumptions and a slightly lower discount rate more than offset a marginally softer profit margin outlook amid shifting competitive dynamics in customer engagement and AI driven marketing tools. Analyst Commentary Analyst sentiment on Salesforce remains mixed as the competitive backdrop in customer engagement and AI driven marketing tools evolves rapidly, leading to both upward and downward adjustments to growth and execution assumptions embedded in valuation models.
MU
US$284.79
Micron Technology
7D
7.1%
1Y
221.3%
APP
US$714.23
AppLovin
7D
-1.0%
1Y
113.1%

Subdued Growth No Barrier To AppLovin Corporation (NASDAQ:APP) With Shares Advancing 31%

Dec 19
Subdued Growth No Barrier To AppLovin Corporation (NASDAQ:APP) With Shares Advancing 31%
LRCX
US$178.07
Lam Research
7D
3.4%
1Y
142.6%

LRCX: Recent AI And Memory Upcycle Euphoria Will Likely Fade

Analysts have raised their price target on Lam Research to approximately $110 from about $81, citing the company's stronger than expected earnings momentum, improving wafer fab equipment upcycle exposure, and durable AI driven demand for advanced memory and 3D stacking technologies. Analyst Commentary Recent Street research reflects a broadly constructive view on Lam Research, with multiple firms lifting price targets and highlighting the company’s leverage to an improving wafer fab equipment cycle, AI driven memory demand, and stronger than expected profitability.
NVDA
US$190.53
NVIDIA
7D
5.3%
1Y
39.1%
PLTR
US$188.71
Palantir Technologies
7D
-2.4%
1Y
138.6%
AAPL
US$273.40
Apple
7D
-0.1%
1Y
7.0%
KLAC
US$1,279.60
KLA
7D
2.7%
1Y
98.4%
MSFT
US$487.71
Microsoft
7D
0.4%
1Y
13.3%

MSFT: Expanded AI Partnerships And Infrastructure Will Drive Durable Cloud Leadership

Analysts have nudged their Microsoft price target slightly higher to approximately $650, reflecting confidence that the company's broadened AI partnerships, resilient Azure growth, and durable margin profile justify modestly stronger long term revenue and earnings assumptions despite rising capex and hyperscaler caution. Analyst Commentary Street research remains broadly constructive on Microsoft, with a cluster of recent notes highlighting the company as a primary beneficiary of accelerating AI adoption, robust cloud demand, and deepened model partnerships, even as a minority of voices urge greater caution around hyperscaler capital intensity and returns.
ARM
US$110.27
Arm Holdings
7D
-3.3%
1Y
-14.7%

ARM Risks Mount As AI-Driven Royalties May Not Justify Premium Multiple

We raise our fair value estimate for Arm Holdings to approximately $99 per share from about $86, reflecting analysts' higher price targets driven by solid earnings beats, accelerating licensing and AI related royalty growth, and improved long term revenue and multiple assumptions, despite a modestly higher discount rate and slightly lower profit margin outlook. Analyst Commentary Recent Street research on Arm reflects a generally constructive outlook on earnings power and artificial intelligence related optionality, but it also highlights areas of caution that could pressure the stock's premium valuation if execution falters.
CRWV
US$76.42
CoreWeave
7D
-7.9%
1Y
n/a
MSTR
US$158.81
Strategy
7D
-3.6%
1Y
-51.9%