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U.S. Tech Sector Analysis

UpdatedJan 01, 2026
DataAggregated Company Financials
Companies997
  • 7D-1.5%
  • 3M-1.6%
  • 1Y22.6%
  • YTD21.4%

Over the last 7 days, the Tech industry has dropped 1.5%, driven by a pullback from NVIDIA of 1.1%. This takes the industry's 12 month performance to a gain of 23%. 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
Fri, 02 Jan 2026US$22.5tUS$2.6tUS$506.7b31.4x44.4x8.7x
Sun, 30 Nov 2025US$22.6tUS$2.6tUS$494.1b30.2x45.7x8.8x
Tue, 28 Oct 2025US$23.3tUS$2.5tUS$463.2b30.3x50.3x9.3x
Thu, 25 Sep 2025US$22.3tUS$2.5tUS$437.8b31.2x50.8x9x
Sat, 23 Aug 2025US$20.5tUS$2.4tUS$418.7b28.4x48.9x8.4x
Mon, 21 Jul 2025US$20.5tUS$2.4tUS$392.6b29.1x52.2x8.6x
Wed, 18 Jun 2025US$18.8tUS$2.4tUS$391.4b27.7x48.1x7.9x
Fri, 16 May 2025US$18.1tUS$2.4tUS$385.1b26.5x47.1x7.7x
Sun, 13 Apr 2025US$15.4tUS$2.3tUS$386.7b24.5x39.8x6.6x
Tue, 11 Mar 2025US$16.9tUS$2.3tUS$384.4b27.5x43.9x7.3x
Thu, 06 Feb 2025US$18.0tUS$2.3tUS$370.9b33.2x48.4x7.9x
Sat, 04 Jan 2025US$18.3tUS$2.3tUS$366.9b32.7x49.8x8.1x
Mon, 02 Dec 2024US$18.2tUS$2.2tUS$361.4b32.9x50.3x8.1x
Wed, 30 Oct 2024US$17.8tUS$2.2tUS$376.2b30.7x47.3x8x
Fri, 27 Sep 2024US$17.2tUS$2.2tUS$378.0b30x45.4x7.9x
Sun, 25 Aug 2024US$17.0tUS$2.1tUS$367.7b29.6x46.3x8x
Tue, 23 Jul 2024US$16.7tUS$2.1tUS$363.1b31.9x46.1x7.9x
Thu, 20 Jun 2024US$17.3tUS$2.1tUS$360.7b29.6x47.9x8.2x
Sat, 18 May 2024US$15.0tUS$2.0tUS$336.9b29.6x44.6x7.4x
Mon, 15 Apr 2024US$14.5tUS$2.0tUS$328.5b28.1x44.3x7.1x
Wed, 13 Mar 2024US$14.6tUS$2.0tUS$325.1b28.5x44.9x7.1x
Fri, 09 Feb 2024US$14.2tUS$2.0tUS$306.4b26.6x46.3x7x
Sun, 07 Jan 2024US$12.8tUS$2.1tUS$292.6b26x43.9x6.3x
Tue, 05 Dec 2023US$12.8tUS$2.1tUS$292.3b25.1x43.8x6.2x
Thu, 02 Nov 2023US$11.3tUS$2.0tUS$277.8b22.3x40.8x5.6x
Sat, 30 Sep 2023US$11.4tUS$2.0tUS$269.7b24.3x42.4x5.6x
Mon, 28 Aug 2023US$11.7tUS$2.0tUS$270.6b24.4x43.3x5.8x
Wed, 26 Jul 2023US$12.4tUS$2.0tUS$257.8b25x48x6.1x
Fri, 23 Jun 2023US$11.7tUS$2.0tUS$264.6b24.5x44.3x5.8x
Sun, 21 May 2023US$10.8tUS$2.0tUS$260.8b23.4x41.4x5.3x
Tue, 18 Apr 2023US$10.3tUS$2.0tUS$274.9b22.9x37.3x5x
Thu, 16 Mar 2023US$10.9tUS$2.3tUS$298.7b22x36.6x4.8x
Sat, 11 Feb 2023US$11.0tUS$2.2tUS$313.8b24x35x4.9x
Mon, 09 Jan 2023US$9.8tUS$2.2tUS$327.4b22x29.8x4.3x
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 44.9x202420252026
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 7.1x 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 Market-1.43%
Tech-1.53%
Tech Hardware-0.87%
Communications-1.09%
Semiconductors-1.35%
Software-1.90%
IT-2.59%
Electronic Equipment and Components-2.87%
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 expect its future annual earnings growth (18.7%) to be largely in line with prior year's earnings growth.
  • 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 32.2x.
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
INTC IntelUS$36.902.0%
+US$3.5b		82.5%PE889x
MSI Motorola SolutionsUS$383.321.8%
+US$1.1b		-17.1%PE30.2x
NOW ServiceNowUS$153.190.4%
+US$622.4m		-27.7%PE91.8x
ANET Arista NetworksUS$131.030.2%
+US$327.4m		18.5%PE49.2x
ZETA Zeta Global HoldingsUS$20.356.5%
+US$305.0m		13.1%PS4.1x

Latest News

ONDS
US$9.76
Ondas Holdings
7D
6.9%
1Y
271.1%
NVDA
US$186.50
NVIDIA
7D
-1.1%
1Y
38.9%
AVGO
US$346.10
Broadcom
7D
-1.2%
1Y
49.3%
TWLO
US$142.24
Twilio
7D
1.4%
1Y
31.6%
NOW
US$153.19
ServiceNow
7D
0.4%
1Y
-27.7%
ANET
US$131.03
Arista Networks
7D
0.2%
1Y
18.5%

ANET: AI Networking Demand Will Sustain Premium Multiple Despite Moderating Margins

Analysts have modestly increased their price target on Arista Networks to $171, citing continued AI driven networking demand and solid, though slightly slower, growth and margin profiles that support maintaining a premium valuation. Analyst Commentary Recent Street research reflects a balanced but still constructive view on Arista Networks, with analysts weighing accelerating AI driven demand against slowing growth rates and a rich valuation.
INTC
US$36.90
Intel
7D
2.0%
1Y
82.5%

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.
APP
US$673.82
AppLovin
7D
-7.4%
1Y
108.1%

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%
PLTR
US$177.75
Palantir Technologies
7D
-8.5%
1Y
135.0%
AAPL
US$271.86
Apple
7D
-0.7%
1Y
8.6%
KLAC
US$1,215.08
KLA
7D
-4.8%
1Y
92.8%
MSFT
US$483.62
Microsoft
7D
-0.9%
1Y
14.7%

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.
TEAM
US$162.14
Atlassian
7D
0.6%
1Y
-33.4%

TEAM: Cloud Transition Progress And AWS Partnership Will Drive Long-Term Upside

Analysts have reduced their price target on Atlassian from $196.00 to $178.00, citing slightly higher perceived risk, a moderation in expected revenue growth, and a modestly lower long term profit margin outlook. Analyst Commentary Bearish analysts have framed the reduced price target as a recalibration of expectations rather than a shift in the long term thesis.
SHOP
US$160.97
Shopify
7D
-5.0%
1Y
49.7%

SHOP: AI Partnerships And Margin Expansion Will Drive Measured Upside Into 2025

Analysts have nudged our Shopify price target higher to approximately $175, up modestly from about $170. This reflects slightly faster expected profit margin expansion and durable post Q3 growth momentum that they believe supports the stock's premium valuation.
MSI
US$383.32
Motorola Solutions
7D
1.8%
1Y
-17.1%

MSI: Recurring Revenue Mix Will Drive Upside Despite Recent Price Target Trims

Analysts have trimmed their price target on Motorola Solutions by approximately $5 to about $494 per share. The revision reflects slightly higher discount rate assumptions and modest pressure on long term margins, while analysts remain encouraged by resilient revenue growth, recurring revenue mix, and potential upside from deferred government deals in 2026.
ZETA
US$20.35
Zeta Global Holdings
7D
6.5%
1Y
13.1%

ZETA: Marigold Acquisition Will Drive Sustained 20% Organic Expansion

Analysts nudged their average price target for Zeta Global Holdings modestly higher to approximately $30, citing the accretive Marigold acquisition, reinforced expectations for 20% plus organic revenue growth and margin expansion through 2026 and beyond, and increased confidence that the company can outperform its long term growth and free cash flow objectives. Analyst Commentary Analyst commentary on Zeta Global remains overwhelmingly positive, with recent research updates highlighting both the strategic impact of the Marigold acquisition and the company’s ability to deliver sustained, high growth at attractive margins.