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U.S. Tech Sector Analysis

UpdatedAug 03, 2026
DataAggregated Company Financials
Companies985
  • 7D0.9%
  • 3M4.8%
  • 1Y25.5%
  • YTD15.5%

Last week, the Tech industry hasn't moved much but Microsoft is up 22% in that time. The past year has been better, since the industry has gained 28% in that time. Looking forward, earnings are forecast to grow by 22% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 03 Aug 2026US$26.1tUS$2.9tUS$638.2b33.6x40.9x8.9x
Wed, 01 Jul 2026US$26.7tUS$2.9tUS$645.0b33.2x41.3x9.3x
Fri, 29 May 2026US$22.0tUS$2.8tUS$611.0b35.8x36.1x7.8x
Sun, 26 Apr 2026US$19.4tUS$2.7tUS$552.5b32.3x35.1x7.2x
Tue, 24 Mar 2026US$20.7tUS$2.7tUS$555.4b31x37.3x7.7x
Thu, 19 Feb 2026US$21.4tUS$2.6tUS$520.4b29.5x41.2x8.2x
Sat, 17 Jan 2026US$22.3tUS$2.6tUS$500.6b31.7x44.6x8.7x
Mon, 15 Dec 2025US$22.4tUS$2.6tUS$503.6b31.1x44.6x8.7x
Wed, 12 Nov 2025US$23.4tUS$2.5tUS$477.9b29.5x48.9x9.2x
Fri, 10 Oct 2025US$23.2tUS$2.5tUS$439.1b32.4x52.9x9.3x
Sun, 07 Sep 2025US$20.8tUS$2.5tUS$435.1b29.2x47.9x8.5x
Tue, 05 Aug 2025US$20.3tUS$2.4tUS$413.5b27.9x49.1x8.4x
Thu, 03 Jul 2025US$19.5tUS$2.4tUS$393.1b28.8x49.7x8.2x
Sat, 31 May 2025US$18.0tUS$2.4tUS$390.3b27x46.1x7.6x
Mon, 28 Apr 2025US$16.1tUS$2.3tUS$386.0b25.9x41.7x6.9x
Wed, 26 Mar 2025US$16.9tUS$2.3tUS$386.7b26.8x43.7x7.3x
Fri, 21 Feb 2025US$19.0tUS$2.3tUS$369.5b31.2x51.3x8.3x
Sun, 19 Jan 2025US$18.4tUS$2.3tUS$367.0b33.9x50x8.1x
Tue, 17 Dec 2024US$18.8tUS$2.3tUS$363.6b32.1x51.6x8.3x
Thu, 14 Nov 2024US$18.2tUS$2.2tUS$352.6b32.9x51.7x8.2x
Sat, 12 Oct 2024US$17.6tUS$2.2tUS$378.2b30.4x46.5x8.1x
Mon, 09 Sep 2024US$15.6tUS$2.2tUS$374.5b27.2x41.7x7.2x
Wed, 07 Aug 2024US$15.1tUS$2.1tUS$362.4b28.7x41.6x7.1x
Fri, 05 Jul 2024US$17.4tUS$2.1tUS$362.9b30.8x47.9x8.2x
Sun, 02 Jun 2024US$15.1tUS$2.1tUS$351.1b29.5x43x7.3x
Tue, 30 Apr 2024US$14.2tUS$2.1tUS$335.6b28.5x42.3x6.9x
Thu, 28 Mar 2024US$14.8tUS$2.0tUS$328.2b28.1x45.1x7.2x
Sat, 24 Feb 2024US$14.4tUS$2.0tUS$322.2b27.5x44.8x7.1x
Mon, 22 Jan 2024US$14.0tUS$2.0tUS$292.0b26.5x47.8x6.8x
Wed, 20 Dec 2023US$13.4tUS$2.1tUS$293.6b25.9x45.8x6.5x
Fri, 17 Nov 2023US$12.6tUS$2.0tUS$281.3b24.1x44.9x6.2x
Sun, 15 Oct 2023US$11.7tUS$2.0tUS$270.2b24.8x43.5x5.8x
Tue, 12 Sep 2023US$12.0tUS$2.0tUS$272.9b23.6x44.1x5.9x
Thu, 10 Aug 2023US$11.6tUS$2.0tUS$262.9b25.6x44.3x5.7x
Price to Earnings Ratio

44.3x


Total Market Cap: US$11.6tTotal Earnings: US$262.9bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45x202420252026
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 40.9x which is lower than its 3-year average PE of 45.0x.
  • The 3-year average PS ratio of 7.7x is lower than the industry's current PS ratio of 8.9x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 34% per year over the last three years.
  • Revenues for these companies have grown 13% 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 Market0.85%
Tech0.87%
Software11.80%
IT5.43%
Communications2.06%
Electronic Equipment and Components0.068%
Semiconductors-0.95%
Tech Hardware-7.21%
Industry PE
  • Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 35.7x.
    • Analysts are expecting annual earnings growth of 19.1%, which is higher than its past year's earnings growth of 8.9% per year.
  • Investors are most pessimistic about the Tech Hardware industry, which is trading close to its 3-year average of 33.9x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 28% 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 11% 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
MSFT MicrosoftUS$464.7221.8%
+US$615.4b		-11.3%PE25.8x
ORCL OracleUS$129.8712.9%
+US$42.9b		-46.9%PE22x
AVGO BroadcomUS$389.281.9%
+US$35.0b		34.9%PE63.2x
CRM SalesforceUS$184.0212.4%
+US$16.7b		-26.6%PE18.8x
NOW ServiceNowUS$111.2312.6%
+US$12.9b		-39.2%PE68.9x

Latest News

MU
US$823.03
Micron Technology
7D
-10.6%
1Y
684.7%
Seeking Alpha • 6h

Micron: High Risk, High Reward

Summary Micron Technology remains attractively valued post-dip, trading at 5x forward EPS, with robust AI-driven memory demand underpinning the bullish thesis. The company is in a far better position securing $100B+ in long-term SCA contracts and $22B in prepayments, with up to 50% of revenue under take-or-pay agreements at fixed prices. Despite strong near-term prospects, MU faces structural boom-bust risk, with gross margins historically swinging from 50% peaks versus 85% now to negative territory in downturns. Competitive dynamics with Samsung and SK hynix, and potential for future oversupply warrant close monitoring even as relentless AI demand supports upside into FY27. Read the full article on Seeking Alpha
MSFT
US$464.72
Microsoft
7D
21.8%
1Y
-11.3%
Seeking Alpha • 17h

Microsoft: The Turnaround Is Finally Accelerating

Summary I'm keeping Microsoft as a Strong Buy rating, as Azure's 43% growth and robust cloud momentum validate its monetization thesis, while silencing the skeptics resoundingly. MSFT's understated end-to-end stack, including cybersecurity and AI partnerships, positions it ahead of hyperscaler and SaaS rivals for further AI monetization as AI agents take off. MSFT Copilot seats rose to 30 million, but with 400 million potential, significant monetization runway remains the narrative to underpin Microsoft's bullish game. Valuation at 24x is still well below the five-year average, while strong free cash flow margins support aggressive CapEx and strategic flexibility. The market has gotten its pessimism wrong on Microsoft as it sold off software stocks indiscriminately. Do not waste this opportunity to get on board before it climbs back to its all-time highs. Read the full article on Seeking Alpha
AAPL
US$308.91
Apple
7D
-7.2%
1Y
52.6%
NOW
US$111.23
ServiceNow
7D
12.6%
1Y
-39.2%
APH
US$160.70
Amphenol
7D
5.3%
1Y
54.1%
ACN
US$165.92
Accenture
7D
12.9%
1Y
-35.0%
AMAT
US$507.67
Applied Materials
7D
-5.3%
1Y
182.1%
Seeking Alpha • Jul 31

Applied Materials: Why I'm Maintaining A 'Strong Buy' After A 45% Run

Summary Applied Materials remains a "Strong Buy" after a 45% rally, driven by robust Q2 results and sector momentum. Q2 revenue reaccelerated to $7.91 billion (+11% YoY), with a record 31.9% operating margin, and raised the 2026 semiconductor equipment growth outlook to 30%+. Management's improved revenue visibility, strategic NEXX acquisition, and deepening EPIC Center partnerships strengthen AMAT’s competitive moat and growth prospects. I raise my fair GAAP PE multiple to 45x–55x, with AMAT trading at the lower end (47x), supporting further upside despite geopolitical risks. Read the full article on Seeking Alpha
ORCL
US$129.87
Oracle
7D
12.9%
1Y
-46.9%
CRM
US$184.02
Salesforce
7D
12.4%
1Y
-26.6%
Seeking Alpha • Jul 31

Salesforce: AI Adoption Is Surging, But Revenue Still Isn't Following - Here's Why

Summary Salesforce is re-rated as BUY, citing undervaluation and strong adoption metrics despite revenue growth deceleration. CRM's Q1'27 organic revenue growth was 8.7%, with AI solution adoption outpacing actual revenue acceleration due to unclear pricing models. Performance metrics—ARR, token growth, and customer expansion—highlight robust AI adoption, but revenue lag persists amid complex pricing structures. CRM trades at a P/E of 13.6x versus the sector's 24x, offering attractive risk-reward despite competitive pressures from MSFT, ORCL, and NOW. Read the full article on Seeking Alpha
NVDA
US$200.75
NVIDIA
7D
-2.9%
1Y
15.6%
Narrative Update • Jul 31

NVDA: AI Infrastructure Commitments And Capital Returns Will Extend Data Center Supercycle

Analysts lifted their Nvidia price target to $330 from $310, citing continued strength in AI data center demand, tighter supply across key components, and reinforced confidence in the company’s role at the center of surging hyperscaler and enterprise AI infrastructure spending. Analyst Commentary Recent research around Nvidia shows a wide range of views on how much AI infrastructure spending, product execution, and competitive moves are already reflected in the stock.
SNDK
US$1,214.83
Sandisk
7D
-15.4%
1Y
2,839.3%
KLAC
US$182.82
KLA
7D
-13.2%
1Y
106.2%
Narrative Update • Jul 30

KLAC: AI Infrastructure Spending And Process Control Demand Will Support Re Rating

Analysts have adjusted the KLA price target to $303.48. This reflects a blend of higher assumed long term profit margins, a slightly higher discount rate, and a richer future P/E multiple supported by research commentary that highlights stronger process control demand, ongoing WFE and AI infrastructure spending, and mixed but generally constructive earnings revisions across the Street.
ARM
US$239.69
Arm Holdings
7D
-7.8%
1Y
74.2%
AMD
US$476.15
Advanced Micro Devices
7D
-8.8%
1Y
177.3%
AVGO
US$389.28
Broadcom
7D
1.9%
1Y
34.9%
Narrative Update • Jul 30

AVGO: AI Custom Silicon Contracts And Anthropic Financing Will Support FY27 Earnings Power

Broadcom's analyst fair value estimate has been adjusted to $675 from $650 as analysts factor in updated AI related chip demand expectations, reinforced long term custom silicon commitments with customers like Apple, and continued focus on margins despite mixed views on valuation and hyperscaler supplier diversification. Analyst Commentary Recent Street research on Broadcom highlights a mix of enthusiasm for the companys AI driven opportunities and caution around valuation and customer concentration.
ADBE
US$250.41
Adobe
7D
11.2%
1Y
-28.0%
Narrative Update • Jul 29

ADBE: Freemium AI Pivot And Leadership Turnover Will Pressure Future ARR

Adobe's updated analyst fair value estimate has moved down from $220 to $190 as analysts weigh lower Street price targets and execution risks tied to freemium, AI monetization, and leadership transitions against still solid revenue growth and margins in their models. Analyst Commentary Recent research on Adobe highlights a clear split in opinion.