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

U.S. Tech Sector Analysis

UpdatedSep 04, 2025
DataAggregated Company Financials
Companies944
  • 7D-1.3%
  • 3M12.4%
  • 1Y30.0%
  • YTD13.3%

Over the last 7 days, the Tech industry has dropped 1.3%, driven by NVIDIA declining 6.0%. This takes the industry's 12 month performance to a gain of 30%. 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
Thu, 04 Sep 2025US$20.6tUS$2.5tUS$429.3b28.5x48x8.4x
Sat, 02 Aug 2025US$20.7tUS$2.4tUS$412.4b27.4x50.3x8.6x
Mon, 30 Jun 2025US$19.6tUS$2.4tUS$393.2b28.4x49.8x8.2x
Wed, 28 May 2025US$17.5tUS$2.4tUS$385.8b27.3x45.5x7.4x
Fri, 25 Apr 2025US$15.3tUS$2.3tUS$387.0b25.8x39.5x6.6x
Sun, 23 Mar 2025US$16.6tUS$2.3tUS$386.9b27.2x42.9x7.1x
Tue, 18 Feb 2025US$18.9tUS$2.3tUS$369.9b32.4x51x8.2x
Thu, 16 Jan 2025US$17.9tUS$2.3tUS$367.0b32.5x48.7x7.9x
Sat, 14 Dec 2024US$18.7tUS$2.3tUS$363.5b32.5x51.4x8.3x
Mon, 11 Nov 2024US$18.3tUS$2.2tUS$352.6b33.3x51.8x8.2x
Wed, 09 Oct 2024US$17.3tUS$2.2tUS$378.2b30.1x45.7x8x
Fri, 06 Sep 2024US$16.0tUS$2.2tUS$378.4b28.2x42.3x7.4x
Sun, 04 Aug 2024US$15.6tUS$2.1tUS$363.3b29.6x42.9x7.3x
Tue, 02 Jul 2024US$16.9tUS$2.1tUS$362.8b30.1x46.4x8x
Thu, 30 May 2024US$15.6tUS$2.1tUS$349.6b29.8x44.5x7.6x
Sat, 27 Apr 2024US$14.2tUS$2.1tUS$335.6b28.4x42.3x6.9x
Mon, 25 Mar 2024US$14.9tUS$2.0tUS$328.6b27.8x45.4x7.3x
Wed, 21 Feb 2024US$14.0tUS$2.0tUS$310.2b27.3x45.2x6.9x
Fri, 19 Jan 2024US$13.6tUS$2.0tUS$292.0b25.9x46.7x6.7x
Sun, 17 Dec 2023US$13.4tUS$2.1tUS$293.6b26.5x45.5x6.5x
Tue, 14 Nov 2023US$12.3tUS$2.0tUS$279.7b23.2x44x6x
Thu, 12 Oct 2023US$12.0tUS$2.0tUS$270.2b25.2x44.2x5.9x
Sat, 09 Sep 2023US$11.9tUS$2.0tUS$272.9b23.8x43.8x5.9x
Mon, 07 Aug 2023US$11.9tUS$2.0tUS$262.2b25.6x45.4x5.9x
Wed, 05 Jul 2023US$12.0tUS$2.0tUS$258.1b25.2x46.6x5.9x
Fri, 02 Jun 2023US$11.5tUS$2.0tUS$263.0b24.3x43.6x5.6x
Sun, 30 Apr 2023US$10.3tUS$2.0tUS$265.6b20.9x38.8x5.1x
Tue, 28 Mar 2023US$10.0tUS$2.0tUS$278.4b22.3x35.8x4.9x
Thu, 23 Feb 2023US$10.7tUS$2.3tUS$296.9b23.5x36.1x4.8x
Sat, 21 Jan 2023US$10.3tUS$2.2tUS$327.5b23.5x31.5x4.6x
Mon, 19 Dec 2022US$10.0tUS$2.3tUS$330.1b21.7x30.2x4.4x
Wed, 16 Nov 2022US$10.5tUS$2.2tUS$333.3b21.8x31.5x4.7x
Fri, 14 Oct 2022US$9.5tUS$2.2tUS$345.2b19x27.6x4.3x
Sun, 11 Sep 2022US$10.9tUS$2.2tUS$346.8b21.3x31.5x5x
Price to Earnings Ratio

31.5x


Total Market Cap: US$10.9tTotal Earnings: US$346.8bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 42.8x202320242025
Current Industry PE
  • Investors are optimistic on the American Information Technology industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 48.0x which is higher than its 3-year average PE of 42.8x.
  • The 3-year average PS ratio of 6.6x is lower than the industry's current PS ratio of 8.4x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 7.4% per year over the last three years.
  • Revenues for these companies have grown 3.9% 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-0.60%
Tech-1.34%
Tech Hardware3.47%
Communications0.78%
IT0.36%
Electronic Equipment and Components-0.59%
Software-0.82%
Semiconductors-4.35%
Industry PE
  • Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 47.7x.
    • Analysts are expecting annual earnings growth of 23.9%, which is higher than its past year's earnings decline of 0.7% 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 30.5x.
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 decline of 0.7% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.3% 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$238.473.5%
+US$118.4b		8.0%PE35.6x
AVGO BroadcomUS$302.390.7%
+US$10.1b		96.2%PE107.4x
SNOW SnowflakeUS$229.3314.4%
+US$9.7b		107.0%PS18.6x
APP AppLovinUS$487.355.3%
+US$8.3b		454.6%PE65.6x
ADSK AutodeskUS$317.5111.0%
+US$6.8b		24.1%PE65.1x

Latest News

SNOW
US$229.33
Snowflake
7D
14.4%
1Y
107.0%
ORCL
US$223.45
Oracle
7D
-5.2%
1Y
58.8%
MRVL
US$62.31
Marvell Technology
7D
-16.7%
1Y
-12.1%
PSTG
US$77.89
Pure Storage
7D
28.0%
1Y
64.4%
APP
US$487.35
AppLovin
7D
5.3%
1Y
454.6%

AXON And Shopify Integration Will Unlock Global Mobile Advertising

AppLovin’s valuation outlook remains stable, with both its future P/E and discount rate essentially unchanged, resulting in only a slight increase in the consensus analyst price target from $493.19 to $499.14. What's in the News Repurchased 732,000 shares for $270.03 million, completing 75,452,556 shares or 21.07% under the buyback program since February 2022.
LRCX
US$97.74
Lam Research
7D
-5.7%
1Y
27.9%
MSFT
US$505.35
Microsoft
7D
-0.8%
1Y
23.7%
AAPL
US$238.47
Apple
7D
3.5%
1Y
8.0%
ADSK
US$317.51
Autodesk
7D
11.0%
1Y
24.1%

Investments In Cloud And AI Will Expand Future Customer Ecosystem

Driven by Autodesk’s stronger-than-expected Q2 results, upgraded guidance, long-term margin expansion targets, and improved revenue prospects—partially offset by macro and margin model concerns—the consensus analyst price target has increased from $342.07 to $356.55. Analyst Commentary Stronger-than-expected fiscal Q2 results and upgraded full-year (FY26) guidance, with revenue growth accelerating and beats across key operating metrics.
ARM
US$131.42
Arm Holdings
7D
-6.6%
1Y
8.7%
AVGO
US$302.39
Broadcom
7D
0.7%
1Y
96.2%

Investing In AI R&D And Hyperscale Partnerships Will Secure Future Technological Leadership

Broadcom’s consensus price target has risen modestly to $302.16, driven by accelerating AI demand, strong custom silicon momentum, improved China access, and sustained AI pipeline growth, offsetting margin pressure from higher AI mix. Analyst Commentary Bullish analysts are raising estimates and price targets reflecting Broadcom's accelerating artificial intelligence (AI) demand, with AI-driven revenue growth guided 60% year-over-year into fiscal 2026.
AMD
US$162.13
Advanced Micro Devices
7D
-3.0%
1Y
15.1%

AI And Data Centers Will Face Risks Yet Unlock Potential

Buoyed by accelerating AI server demand, renewed access to the Chinese AI chip market, and strong quarterly execution, analysts have raised Advanced Micro Devices’ consensus price target from $178.78 to $184.67. Analyst Commentary Bullish analysts cite a significant ramp in AI server demand from hyperscalers, with accelerating momentum in AMD's MI350 GPU series and expectations for the future launch of the MI400 architecture to drive revenue outperformance and market share gains through 2026.
NOW
US$919.38
ServiceNow
7D
3.5%
1Y
10.1%
CRM
US$256.45
Salesforce
7D
2.5%
1Y
3.5%
TXN
US$195.74
Texas Instruments
7D
-4.7%
1Y
-4.0%

Texas Instruments Incorporated Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Aug 01
Texas Instruments Incorporated Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
NVDA
US$170.62
NVIDIA
7D
-6.0%
1Y
60.6%

NVIDIA Aims for 55.78x P/E Growth as AI Ecosystem Expands

Nvidia (NVDA) Investment Thesis – Long-Term Outlook Nvidia has evolved far beyond its GPU roots, becoming a foundational enabler of accelerated computing across AI, data centers, autonomous vehicles, and more. Its position at the intersection of multiple tech megatrends—AI, HPC, robotics, gaming, and edge computing—gives it unmatched leverage in shaping the digital economy.