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U.S. Tech Sector Analysis

UpdatedFeb 20, 2026
DataAggregated Company Financials
Companies988
  • 7D0.6%
  • 3M-0.2%
  • 1Y14.0%
  • YTD-4.3%

Over the last 7 days, the Tech industry has dropped 1.6%, driven by a pullback from Microsoft of 0.9%. On the other hand Applied Materials is actually up 13%. This takes the industry's 12 month performance to a gain of 14%. Looking forward, earnings are forecast to grow by 19% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 20 Feb 2026US$21.7tUS$2.6tUS$520.3b29.1x41.7x8.2x
Sun, 18 Jan 2026US$22.4tUS$2.6tUS$500.6b31.7x44.7x8.8x
Tue, 16 Dec 2025US$22.4tUS$2.6tUS$503.6b31.1x44.6x8.7x
Thu, 13 Nov 2025US$23.2tUS$2.5tUS$477.9b30.5x48.5x9.1x
Sat, 11 Oct 2025US$22.8tUS$2.5tUS$439.1b30.5x51.9x9.1x
Mon, 08 Sep 2025US$20.8tUS$2.5tUS$435.1b29.2x47.9x8.5x
Wed, 06 Aug 2025US$20.7tUS$2.4tUS$413.8b27.3x50x8.6x
Fri, 04 Jul 2025US$20.1tUS$2.4tUS$393.2b29.4x51x8.4x
Sun, 01 Jun 2025US$17.9tUS$2.4tUS$390.3b27x46x7.5x
Tue, 29 Apr 2025US$16.0tUS$2.3tUS$385.9b25.6x41.5x6.9x
Thu, 27 Mar 2025US$16.7tUS$2.3tUS$387.3b26.7x43.2x7.2x
Sat, 22 Feb 2025US$18.4tUS$2.3tUS$369.5b30.2x49.8x8x
Mon, 20 Jan 2025US$18.4tUS$2.3tUS$367.0b33.9x50x8.1x
Wed, 18 Dec 2024US$19.0tUS$2.3tUS$363.6b32.7x52.1x8.4x
Fri, 15 Nov 2024US$18.2tUS$2.2tUS$351.5b33x51.7x8.1x
Sun, 13 Oct 2024US$17.6tUS$2.2tUS$378.2b30.4x46.6x8.1x
Tue, 10 Sep 2024US$15.8tUS$2.2tUS$374.6b27.4x42.3x7.3x
Thu, 08 Aug 2024US$15.1tUS$2.1tUS$366.3b27.3x41.3x7.1x
Sat, 06 Jul 2024US$17.3tUS$2.1tUS$362.9b30.7x47.8x8.2x
Mon, 03 Jun 2024US$15.1tUS$2.1tUS$351.1b29.5x43x7.3x
Wed, 01 May 2024US$13.9tUS$2.1tUS$335.0b27.7x41.6x6.8x
Fri, 29 Mar 2024US$14.8tUS$2.0tUS$328.0b28.2x45x7.2x
Sun, 25 Feb 2024US$14.4tUS$2.0tUS$322.4b27.5x44.8x7.1x
Tue, 23 Jan 2024US$14.0tUS$2.0tUS$292.0b26.5x48.1x6.8x
Thu, 21 Dec 2023US$13.4tUS$2.1tUS$293.6b25.3x45.8x6.5x
Sat, 18 Nov 2023US$12.6tUS$2.0tUS$281.5b24.5x44.9x6.2x
Mon, 16 Oct 2023US$11.8tUS$2.0tUS$270.2b24.8x43.5x5.8x
Wed, 13 Sep 2023US$12.0tUS$2.0tUS$272.9b24x44.1x5.9x
Fri, 11 Aug 2023US$11.7tUS$2.0tUS$263.4b25.3x44.2x5.8x
Sun, 09 Jul 2023US$11.9tUS$2.0tUS$258.1b24.5x46x5.9x
Tue, 06 Jun 2023US$11.5tUS$2.0tUS$264.1b24.2x43.7x5.7x
Thu, 04 May 2023US$10.1tUS$2.0tUS$263.9b20.5x38.4x5x
Sat, 01 Apr 2023US$10.4tUS$2.0tUS$275.0b23.4x37.9x5.1x
Mon, 27 Feb 2023US$10.7tUS$2.3tUS$296.1b23.1x36x4.7x
Price to Earnings Ratio

36x


Total Market Cap: US$10.7tTotal Earnings: US$296.1bTotal Revenue: US$2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.3x202420252026
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 41.2x which is lower than its 3-year average PE of 45.3x.
  • The 3-year average PS ratio of 7.2x is lower than the industry's current PS ratio of 8.2x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 21% per year over the last three years.
  • Revenues for these companies have grown 5.3% 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 Market0.64%
Tech0.58%
Communications3.82%
Electronic Equipment and Components2.63%
IT1.34%
Semiconductors0.84%
Software0.19%
Tech Hardware-0.50%
Industry PE
  • Investors are most optimistic about the Semiconductors industry, which is trading close to its 3-year average PE ratio of 53.1x.
    • Analysts are expecting annual earnings growth of 24.2%, which is higher than its past year's earnings growth of 5.6% per year.
  • Investors are most pessimistic about the Software industry, which is trading below its 3-year average of 54.1x.
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 5.6% per year.
  • 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$260.581.9%
+US$70.5b		6.1%PE32.5x
AMAT Applied MaterialsUS$369.8312.6%
+US$32.9b		110.1%PE37.4x
NVDA NVIDIAUS$187.900.5%
+US$23.3b		34.1%PE46x
SHOP ShopifyUS$123.8011.9%
+US$17.1b		0.3%PE131.2x
APP AppLovinUS$412.0012.3%
+US$15.3b		-8.4%PE40.6x

Latest News

AVGO
US$333.99
Broadcom
7D
0.9%
1Y
47.3%
AMAT
US$369.83
Applied Materials
7D
12.6%
1Y
110.1%
MSFT
US$398.46
Microsoft
7D
-0.7%
1Y
-2.4%

MSFT: AI Self Sufficiency And Global Data Center Expansion Will Sustain Cloud Leadership

Our analyst price target for Microsoft has been nudged lower by a few dollars to reflect a slightly reduced fair value estimate of about $596, as analysts balance ongoing enthusiasm around AI driven capital spending with a wave of recent target trims. These largely stem from valuation discipline and concerns that prior long term assumptions, including P/E and margin expectations, may have been set too high.
STX
US$408.97
Seagate Technology Holdings
7D
-5.1%
1Y
298.5%

STX: Elevated P E Expectations For 2026 Pricing Will Face Execution Test

The analyst price target for Seagate Technology Holdings has been updated to $375.00. This change reflects analysts' revised assumptions for higher revenue growth, slightly stronger profit margins, and a higher future P/E multiple following a series of Street target increases and rating upgrades.
AMD
US$203.37
Advanced Micro Devices
7D
-1.2%
1Y
78.1%

AMD: AI Accelerator And Server Demand Will Support Long-Term Earnings Power

Analysts have trimmed their consolidated AMD price target by about $5 to reflect slightly more cautious revenue growth assumptions and a lower future P/E, while acknowledging stronger profit margin expectations supported by recent research highlighting AI accelerator demand, server CPU sell through into 2026, and ongoing debate around competitive risks. Analyst Commentary Recent research on Advanced Micro Devices points to a split tape in sentiment, but with a clear group of bullish analysts leaning into AI, server demand, and competitive positioning as key supports for valuation and growth expectations.
APP
US$412.00
AppLovin
7D
12.3%
1Y
-8.4%

APP: Higher 2026 Revenue Outlook And Rich Margins Will Support Upside Potential

Analysts have adjusted their price target on AppLovin to $476.89 from $530.78, citing updated assumptions around revenue growth, profit margins, and future P/E multiples. What's in the News AppLovin issued new earnings guidance for the first quarter of 2026, setting expected total revenue in a range of US$1.745b to US$1.775b (Key Developments).
IBM
US$256.28
International Business Machines
7D
-1.2%
1Y
-3.2%

IBM: Execution Risks Around Confluent Integration Will Define Future Downside

Analysts have raised their price targets on International Business Machines, supporting a fair value increase from $198.00 to approximately $232.21. They attribute this change to updated assumptions regarding revenue growth, margins, and future P/E multiples.
AAPL
US$260.58
Apple
7D
1.9%
1Y
6.1%

AAPL: Gemini Partnership And AI Roadmap Will Drive Future Upside

Analysts have raised their Apple fair value estimate to $350 from about $283.66, citing Street research that characterizes the recent selloff as unwarranted and highlights a clearer AI roadmap supported by the Google Gemini partnership as well as ongoing checks on demand and margins. Analyst Commentary Recent research points to a generally constructive backdrop around Apple, with many bullish analysts emphasizing AI execution, the Google Gemini partnership, and supportive checks on demand and margins.
SHOP
US$123.80
Shopify
7D
11.9%
1Y
0.3%

SHOP: Rich Multiple And Mixed Sentiment Will Likely Cap Near-Term Upside

Analysts have trimmed our Shopify fair value estimate to $110 from about $139. This reflects lower price targets across the Street as models reset for softer revenue growth assumptions, slightly reduced margin expectations, and lower sector P/E multiples despite generally solid recent results.
INTC
US$44.62
Intel
7D
-4.0%
1Y
71.0%

INTC: AI And Foundry Partnerships Will Test Rich Future P E Expectations

Intel's updated fair value estimate edged up to $47.12 from $46.97 as analysts balanced a series of upward and downward price target revisions with slightly adjusted assumptions around discount rate, revenue growth, profit margins and future P/E. This reflects a more finely tuned view of the company’s execution and foundry opportunity.
TXN
US$218.05
Texas Instruments
7D
-2.2%
1Y
6.9%

TXN: Higher Street Conviction And Tariff Uncertainty Will Shape Next Cycle

The analyst fair value estimate for Texas Instruments has shifted from about $191 to roughly $219. Analysts attribute this change to updated expectations for revenue growth, profit margins, and a higher future P/E multiple following a wave of recent price target increases across the Street.
CSCO
US$78.56
Cisco Systems
7D
4.7%
1Y
21.5%
PLTR
US$134.89
Palantir Technologies
7D
4.5%
1Y
26.9%
ACN
US$214.95
Accenture
7D
-3.2%
1Y
-44.1%
INTU
US$381.54
Intuit
7D
-4.1%
1Y
-34.1%
NVDA
US$187.90
NVIDIA
7D
0.5%
1Y
34.1%

NVDA: AI Infrastructure Demand And Partnerships Will Sustain Market Leadership

Analysts nudged their fair value estimate for Nvidia higher from US$326.00 to about US$334.78, as they factor in expectations for stronger profit margins, a higher future P/E and recent research that highlights Nvidia's AI leadership, data center demand and supportive partner deals such as the CoreWeave agreement. Analyst Commentary Recent Street research around Nvidia has been broadly constructive, with many bullish analysts adjusting their models after company updates, product news and partner commentary.