Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Tech Sector Analysis

UpdatedDec 30, 2025
DataAggregated Company Financials
Companies987
  • 7D-0.2%
  • 3M0.3%
  • 1Y24.0%
  • YTD23.9%

Over the last 7 days, the Tech industry has risen 1.1%, driven by gains from NVIDIA of 3.7%. In the last 12 months, the industry was up 23%. As for the next few years, earnings are expected to grow by 20% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 30 Dec 2025US$22.8tUS$2.6tUS$506.8b30.6x44.9x8.8x
Thu, 27 Nov 2025US$22.2tUS$2.6tUS$494.2b29.1x44.9x8.6x
Sat, 25 Oct 2025US$22.9tUS$2.5tUS$463.2b30.7x49.5x9.2x
Mon, 22 Sep 2025US$22.2tUS$2.5tUS$435.4b31.4x51x9x
Wed, 20 Aug 2025US$21.1tUS$2.4tUS$418.1b27.6x50.6x8.7x
Fri, 18 Jul 2025US$20.3tUS$2.4tUS$393.2b29.5x51.8x8.5x
Sun, 15 Jun 2025US$18.5tUS$2.4tUS$391.0b27.6x47.4x7.8x
Tue, 13 May 2025US$17.0tUS$2.4tUS$383.9b27x44.3x7.2x
Thu, 10 Apr 2025US$13.8tUS$2.3tUS$386.8b25.2x35.8x5.9x
Sat, 08 Mar 2025US$16.7tUS$2.3tUS$383.9b28.2x43.5x7.2x
Mon, 03 Feb 2025US$18.0tUS$2.3tUS$370.9b33.3x48.5x7.9x
Wed, 01 Jan 2025US$18.5tUS$2.3tUS$366.8b31.9x50.4x8.2x
Fri, 29 Nov 2024US$18.0tUS$2.2tUS$361.3b33x49.8x8x
Sun, 27 Oct 2024US$17.8tUS$2.2tUS$378.1b30.3x47x8x
Tue, 24 Sep 2024US$17.0tUS$2.2tUS$375.4b28.8x45.2x7.8x
Thu, 22 Aug 2024US$17.0tUS$2.1tUS$368.0b29.6x46.2x7.9x
Sat, 20 Jul 2024US$16.9tUS$2.1tUS$363.1b30.7x46.6x8x
Mon, 17 Jun 2024US$17.0tUS$2.1tUS$360.7b29.1x47.1x8x
Wed, 15 May 2024US$14.6tUS$2.0tUS$337.3b30.3x43.2x7.2x
Fri, 12 Apr 2024US$14.5tUS$2.0tUS$328.6b28.6x44x7.1x
Sun, 10 Mar 2024US$14.7tUS$2.0tUS$325.0b28.2x45.1x7.2x
Tue, 06 Feb 2024US$14.0tUS$2.0tUS$306.5b25.5x45.7x6.9x
Thu, 04 Jan 2024US$12.9tUS$2.1tUS$292.6b25.6x44.1x6.3x
Sat, 02 Dec 2023US$12.8tUS$2.1tUS$292.4b25.5x43.6x6.2x
Mon, 30 Oct 2023US$11.2tUS$2.0tUS$278.4b22.3x40.1x5.5x
Wed, 27 Sep 2023US$11.3tUS$2.0tUS$273.1b23.8x41.4x5.5x
Fri, 25 Aug 2023US$11.6tUS$2.0tUS$270.5b24.8x43x5.7x
Sun, 23 Jul 2023US$12.2tUS$2.0tUS$258.1b25.5x47.3x6x
Tue, 20 Jun 2023US$11.9tUS$2.0tUS$264.4b24.9x45.2x5.9x
Thu, 18 May 2023US$10.6tUS$2.0tUS$262.0b23.5x40.4x5.2x
Sat, 15 Apr 2023US$10.2tUS$2.0tUS$274.9b22.6x37.2x5x
Mon, 13 Mar 2023US$10.6tUS$2.3tUS$298.6b21.7x35.7x4.7x
Wed, 08 Feb 2023US$11.2tUS$2.2tUS$313.8b24.8x35.8x5x
Fri, 06 Jan 2023US$9.5tUS$2.2tUS$327.4b21.6x29x4.2x
Price to Earnings Ratio

29x


Total Market Cap: US$9.5tTotal 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 7.1x 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-0.18%
Tech-0.17%
Tech Hardware0.43%
Communications0.17%
Electronic Equipment and Components-0.13%
Semiconductors-0.13%
IT-0.53%
Software-0.55%
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 19.5%, 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
AAPL AppleUS$273.761.0%
+US$41.2b		8.5%PE36.1x
MU Micron TechnologyUS$294.376.4%
+US$20.0b		245.1%PE27.8x
ANET Arista NetworksUS$134.152.6%
+US$4.3b		20.4%PE50.3x
IBM International Business MachinesUS$305.741.0%
+US$2.8b		38.8%PE36.1x
AMAT Applied MaterialsUS$263.051.1%
+US$2.2b		61.7%PE29.8x

Latest News

ORCL
US$195.38
Oracle
7D
-1.5%
1Y
17.1%
NVDA
US$188.22
NVIDIA
7D
-0.5%
1Y
40.2%

NVDA: AI Infrastructure Supercycle Will Drive Multi-Year Data Center Leadership

Analysts nudged their fair value estimate for Nvidia modestly higher to approximately $253 per share from about $250 per share, citing a wave of post earnings price target hikes that highlight the company's entrenched AI data center leadership and strong multi year demand visibility, despite emerging competition from custom accelerators and TPUs. Analyst Commentary Bullish analysts largely interpret the recent wave of estimate and price target increases as confirmation that Nvidia remains the primary beneficiary of the ongoing AI infrastructure buildout, with multi year visibility supported by a deep order book for Blackwell and Rubin platforms and expanding hyperscaler and sovereign AI commitments. At the same time, there is growing acknowledgment that alternative accelerators, custom ASICs, and TPUs are beginning to carve out share in certain workloads, introducing a more competitive backdrop that could constrain upside to current expectations if Nvidia fails to maintain its performance and ecosystem advantages.
ANET
US$134.15
Arista Networks
7D
2.6%
1Y
20.4%

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$36.68
Intel
7D
0.9%
1Y
82.9%

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.
APH
US$136.90
Amphenol
7D
1.3%
1Y
97.0%

APH: AI Connectivity Demand Will Support Margins And Sustained Earnings Outperformance

The Analyst Price Target for Amphenol has inched higher to approximately $149 per share from about $148 per share, as analysts point to sustained earnings beats, improving margin outlooks and rising end market demand across autos, hyperscale data centers and broader connectivity applications. Analyst Commentary Bullish analysts have broadly raised their price targets on Amphenol following a string of earnings beats and constructive guidance, highlighting both cyclical recovery and structural growth drivers across key end markets.
MU
US$294.37
Micron Technology
7D
6.4%
1Y
245.1%
APP
US$698.82
AppLovin
7D
-4.1%
1Y
115.8%

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$184.17
Palantir Technologies
7D
-5.1%
1Y
138.6%
AAPL
US$273.76
Apple
7D
1.0%
1Y
8.5%
MSFT
US$487.10
Microsoft
7D
0.05%
1Y
15.6%

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.
SHOP
US$167.88
Shopify
7D
-1.1%
1Y
57.4%

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.
IBM
US$305.74
International Business Machines
7D
1.0%
1Y
38.8%

IBM: Quantum Optionality And Software Execution Will Drive Returns Amid Workforce Shift

Analysts have nudged their fair value estimate for International Business Machines slightly higher, lifting the price target by about $3 to reflect steady core software execution, improving long term quantum revenue optionality, and modestly richer earnings multiples, despite only incremental changes to growth and margin assumptions. Analyst Commentary Recent Street research presents a mixed but generally constructive view on IBM, with several bullish analysts lifting price targets on the back of solid execution in software, consulting, and emerging quantum capabilities, while more cautious voices point to valuation and growth hurdles that still need to be cleared.
AMAT
US$263.05
Applied Materials
7D
1.1%
1Y
61.7%
CRWV
US$74.92
CoreWeave
7D
-11.7%
1Y
n/a
MSTR
US$155.38
Strategy
7D
-5.4%
1Y
-48.7%
IONQ
US$45.25
IonQ
7D
-16.0%
1Y
2.2%