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U.S. Tech Sector Analysis

UpdatedFeb 18, 2026
DataAggregated Company Financials
Companies986
  • 7D-2.6%
  • 3M-3.2%
  • 1Y13.1%
  • YTD-4.9%

Over the last 7 days, the Tech industry has dropped 2.6%, driven by pullbacks in Apple and Microsoft of 3.6% and 4.0%, respectively. Meanwhile, Micron Technology actually outperformed within the industry, gaining 7.1% in the last week. Over the past 12 months, the industry was up 13%. 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
Wed, 18 Feb 2026US$21.4tUS$2.6tUS$520.3b29.7x41.1x8.1x
Fri, 16 Jan 2026US$22.4tUS$2.6tUS$500.6b32x44.7x8.8x
Sun, 14 Dec 2025US$22.4tUS$2.6tUS$503.6b31.1x44.6x8.7x
Tue, 11 Nov 2025US$23.2tUS$2.5tUS$478.4b30.1x48.5x9.1x
Thu, 09 Oct 2025US$22.7tUS$2.5tUS$438.2b32.5x51.9x9.2x
Sat, 06 Sep 2025US$20.8tUS$2.5tUS$435.1b29.2x47.9x8.5x
Mon, 04 Aug 2025US$20.3tUS$2.4tUS$413.0b27.6x49.1x8.4x
Wed, 02 Jul 2025US$19.6tUS$2.4tUS$393.2b28.8x49.8x8.2x
Fri, 30 May 2025US$18.0tUS$2.4tUS$389.8b27.3x46.3x7.6x
Sun, 27 Apr 2025US$16.1tUS$2.3tUS$386.0b25.9x41.7x6.9x
Tue, 25 Mar 2025US$16.6tUS$2.3tUS$386.8b27.7x42.9x7.1x
Thu, 20 Feb 2025US$18.9tUS$2.3tUS$369.6b32.1x51x8.2x
Sat, 18 Jan 2025US$18.2tUS$2.3tUS$367.0b33.9x49.6x8x
Mon, 16 Dec 2024US$18.7tUS$2.3tUS$363.6b32.3x51.4x8.3x
Wed, 13 Nov 2024US$18.1tUS$2.2tUS$349.2b33.1x51.9x8.1x
Fri, 11 Oct 2024US$17.6tUS$2.2tUS$378.2b29.9x46.5x8.1x
Sun, 08 Sep 2024US$15.6tUS$2.2tUS$374.5b27.2x41.7x7.2x
Tue, 06 Aug 2024US$15.6tUS$2.1tUS$363.3b28.3x42.9x7.3x
Thu, 04 Jul 2024US$17.4tUS$2.1tUS$362.9b30.8x47.9x8.2x
Sat, 01 Jun 2024US$15.1tUS$2.1tUS$351.1b29.5x43x7.3x
Mon, 29 Apr 2024US$14.2tUS$2.1tUS$335.6b28.4x42.3x6.9x
Wed, 27 Mar 2024US$14.8tUS$2.0tUS$328.2b27.4x45.1x7.3x
Fri, 23 Feb 2024US$13.9tUS$2.0tUS$322.1b28.1x43.1x6.8x
Sun, 21 Jan 2024US$13.9tUS$2.0tUS$292.0b26.5x47.4x6.8x
Tue, 19 Dec 2023US$13.4tUS$2.1tUS$293.6b26.2x45.5x6.5x
Thu, 16 Nov 2023US$12.6tUS$2.0tUS$280.3b24.5x44.8x6.2x
Sat, 14 Oct 2023US$11.7tUS$2.0tUS$270.2b24.8x43.5x5.8x
Mon, 11 Sep 2023US$12.0tUS$2.0tUS$272.9b24.3x43.8x5.9x
Wed, 09 Aug 2023US$11.8tUS$2.0tUS$262.4b25.1x45x5.8x
Fri, 07 Jul 2023US$11.9tUS$2.0tUS$258.1b24.7x46.1x5.9x
Sun, 04 Jun 2023US$11.5tUS$2.0tUS$264.1b24.7x43.7x5.7x
Tue, 02 May 2023US$10.3tUS$2.0tUS$265.3b21.3x38.9x5.1x
Thu, 30 Mar 2023US$10.1tUS$2.0tUS$279.2b22.9x36.3x5x
Sat, 25 Feb 2023US$10.7tUS$2.3tUS$295.9b23.2x36.1x4.7x
Price to Earnings Ratio

36.1x


Total Market Cap: US$10.7tTotal Earnings: US$295.9bTotal 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 41.1x 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 8.1x.
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 Market-1.58%
Tech-2.59%
Electronic Equipment and Components1.16%
Semiconductors-0.94%
Tech Hardware-3.16%
Communications-4.05%
Software-4.40%
IT-6.34%
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 24.4%, which is higher than its past year's earnings growth of 5.6% per year.
  • Investors are most pessimistic about the Tech Hardware industry, which is trading close to its 3-year average of 32.7x.
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 9.8% 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
MU Micron TechnologyUS$399.787.1%
+US$29.9b		274.4%PE37.8x
AMAT Applied MaterialsUS$359.139.1%
+US$23.9b		108.8%PE36.4x
LRCX Lam ResearchUS$235.584.0%
+US$11.2b		172.1%PE47.3x
WDC Western DigitalUS$284.118.2%
+US$7.3b		294.4%PE24.4x
APH AmphenolUS$148.573.1%
+US$6.2b		115.2%PE42.8x

Latest News

APP
US$376.38
AppLovin
7D
-20.4%
1Y
-24.1%
AAPL
US$263.88
Apple
7D
-3.6%
1Y
7.9%

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MSI
US$457.76
Motorola Solutions
7D
9.1%
1Y
7.5%

Analysts Have Made A Financial Statement On Motorola Solutions, Inc.'s (NYSE:MSI) Annual Report

Feb 16
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WDC
US$284.11
Western Digital
7D
8.2%
1Y
294.4%

WDC: Future AI Storage Demand And HDD Pricing May Support Upside

Analysts have lifted their implied fair value estimate for Western Digital to $440.00 per share. They cite updated assumptions that include higher revenue growth, stronger profit margins and a slightly lower discount rate, along with a P/E outlook broadly consistent with prior expectations and a series of recent price target increases across the Street.
KLAC
US$1,470.19
KLA
7D
2.8%
1Y
93.9%

KLAC: AI And DRAM Upswing Will Test Elevated P/E Expectations

The analyst fair value estimate for KLA has been raised by $52 to $1,332, as analysts generally factor in slightly higher revenue growth and profit margins, a modestly lower discount rate, and Street research that points to stronger wafer fab equipment spending and KLA's position in leading edge logic and memory. Analyst Commentary Recent Street research around KLA features a cluster of higher price targets and several rating upgrades, with many firms pointing to wafer fab equipment spending, leading edge logic and memory exposure, and KLA's competitive position as key drivers in their models.
MU
US$399.78
Micron Technology
7D
7.1%
1Y
274.4%

MU: AI Memory Hype Will Eventually Collide With Rising DRAM Capacity

Micron Technology's fair value estimate has been revised higher from $176.14 to $214.08 as analysts factor in stronger assumptions for revenue growth, profit margins and future P/E. This revision is supported by a broad wave of higher Street price targets tied to tight memory supply and rising AI driven demand.
AMAT
US$359.13
Applied Materials
7D
9.1%
1Y
108.8%

AMAT: Future WFE Cycle Strength Will Drive Returns Higher

Analysts have lifted their implied fair value for Applied Materials from about $248 to roughly $399, citing higher assumed revenue growth, stronger profit margins, and a richer future P/E multiple. They link this to a broad wave of price target hikes and upgrades across recent Street research.
CSCO
US$76.85
Cisco Systems
7D
-10.9%
1Y
19.0%
APH
US$148.57
Amphenol
7D
3.1%
1Y
115.2%
AMD
US$203.08
Advanced Micro Devices
7D
-4.9%
1Y
77.7%
MSFT
US$396.86
Microsoft
7D
-4.0%
1Y
-3.1%
IBM
US$258.31
International Business Machines
7D
-11.5%
1Y
-1.8%
LRCX
US$235.58
Lam Research
7D
4.0%
1Y
172.1%
ADI
US$337.51
Analog Devices
7D
3.8%
1Y
53.3%

ADI: Autos And AI Are Expected To Support A Measured Cyclical Recovery

Analysts have nudged their price target framework higher for Analog Devices, with fair value moving from US$285.56 to US$313.31 as they factor in Street research pointing to stronger revenue growth assumptions, slightly higher profit margins, a modestly lower discount rate, and a richer future P/E outlook following multiple recent target hikes across major firms. Analyst Commentary Recent Street research on Analog Devices clusters around a broadly positive view, with most firms lifting price targets and a minority trimming theirs while keeping constructive ratings.
NVDA
US$184.97
NVIDIA
7D
-1.9%
1Y
32.7%

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.
AVGO
US$332.54
Broadcom
7D
-2.3%
1Y
45.5%

AVGO: AI Custom Silicon Demand Will Shape Future Earnings Power

Analysts have lifted their Broadcom fair value estimate from US$415.56 to US$535.00, citing stronger AI related revenue assumptions, slightly leaner profit margins, and a lower future P/E expectation as they recalibrate forecasts alongside a series of recent upgrades and higher price targets across the semiconductor group. Analyst Commentary Recent Street research around Broadcom has leaned constructive, with several firms revising price targets, initiating coverage, or resuming opinions that highlight the company as a key beneficiary of AI related spending and custom silicon demand.