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U.S. Tech Sector Analysis

UpdatedFeb 10, 2026
DataAggregated Company Financials
Companies986
  • 7D0.7%
  • 3M-4.7%
  • 1Y19.6%
  • YTD-1.8%

Over the last 7 days, the Tech industry has dropped 1.5%, driven by a pullback from Micron Technology of 12%. On the other hand NVIDIA is actually up 5.4%. This takes the industry's 12 month performance to a gain of 20%. 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
Tue, 10 Feb 2026US$22.0tUS$2.6tUS$517.1b30.8x42.5x8.4x
Thu, 08 Jan 2026US$22.7tUS$2.6tUS$506.8b32.1x44.8x8.8x
Sat, 06 Dec 2025US$22.9tUS$2.6tUS$496.4b31.2x46.1x8.9x
Mon, 03 Nov 2025US$23.9tUS$2.5tUS$481.9b30.2x49.6x9.4x
Wed, 01 Oct 2025US$22.4tUS$2.5tUS$437.8b31.5x51.2x9.1x
Fri, 29 Aug 2025US$21.0tUS$2.4tUS$428.8b29.3x48.9x8.6x
Sun, 27 Jul 2025US$20.6tUS$2.4tUS$392.9b28.3x52.5x8.6x
Tue, 24 Jun 2025US$18.9tUS$2.4tUS$391.7b27.7x48.3x7.9x
Thu, 22 May 2025US$18.0tUS$2.4tUS$385.5b26.5x46.6x7.6x
Sat, 19 Apr 2025US$14.9tUS$2.3tUS$386.6b24.6x38.5x6.4x
Mon, 17 Mar 2025US$16.5tUS$2.3tUS$386.2b26.5x42.9x7.1x
Wed, 12 Feb 2025US$18.4tUS$2.3tUS$371.5b33.1x49.6x8x
Fri, 10 Jan 2025US$18.4tUS$2.3tUS$366.9b33.1x50.2x8.2x
Sun, 08 Dec 2024US$18.8tUS$2.3tUS$362.4b33.4x52x8.4x
Tue, 05 Nov 2024US$17.2tUS$2.2tUS$353.4b29.6x48.8x7.7x
Thu, 03 Oct 2024US$17.3tUS$2.2tUS$378.1b29.4x45.6x8x
Sat, 31 Aug 2024US$16.6tUS$2.2tUS$378.5b29.5x44x7.7x
Mon, 29 Jul 2024US$16.3tUS$2.1tUS$361.7b31.6x45.2x7.7x
Wed, 26 Jun 2024US$16.5tUS$2.1tUS$360.6b29.9x45.9x7.8x
Fri, 24 May 2024US$15.2tUS$2.1tUS$349.5b29.6x43.4x7.4x
Sun, 21 Apr 2024US$13.5tUS$2.0tUS$328.5b27.8x41x6.6x
Tue, 19 Mar 2024US$14.6tUS$2.0tUS$325.1b27.5x44.8x7.1x
Thu, 15 Feb 2024US$14.2tUS$2.0tUS$310.0b27.2x45.8x7x
Sat, 13 Jan 2024US$13.4tUS$2.0tUS$292.0b26x46x6.5x
Mon, 11 Dec 2023US$12.9tUS$2.1tUS$293.2b25x44x6.3x
Wed, 08 Nov 2023US$11.9tUS$2.0tUS$279.6b23.2x42.6x5.9x
Fri, 06 Oct 2023US$11.5tUS$2.0tUS$269.9b24.4x42.7x5.7x
Sun, 03 Sep 2023US$12.3tUS$2.0tUS$272.5b24.7x45x6x
Tue, 01 Aug 2023US$12.4tUS$2.0tUS$263.3b24.8x47.2x6.1x
Thu, 29 Jun 2023US$11.8tUS$2.0tUS$264.5b23.8x44.7x5.8x
Sat, 27 May 2023US$11.4tUS$2.0tUS$261.8b24.2x43.4x5.6x
Mon, 24 Apr 2023US$10.2tUS$2.0tUS$275.1b21.5x36.9x5x
Wed, 22 Mar 2023US$10.0tUS$2.0tUS$278.7b22x35.8x4.9x
Fri, 17 Feb 2023US$11.1tUS$2.3tUS$297.3b23.9x37.4x4.9x
Price to Earnings Ratio

37.4x


Total Market Cap: US$11.1tTotal Earnings: US$297.3bTotal 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 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 45.3x.
  • The 3-year average PS ratio of 7.2x 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 20% 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 Market0.33%
Tech0.71%
Communications6.39%
Electronic Equipment and Components5.28%
Semiconductors2.50%
Tech Hardware1.50%
Software-2.45%
IT-7.42%
Industry PE
  • Investors are most optimistic about the Semiconductors industry, which is trading close to its 3-year average PE ratio of 52.9x.
    • Analysts are expecting annual earnings growth of 24.3%, which is higher than its past year's earnings growth of 3.1% per year.
  • Investors are most pessimistic about the Software industry, which is trading below its 3-year average of 54.4x.
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 3.1% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.5% 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
NVDA NVIDIAUS$190.045.4%
+US$235.7b		43.1%PE46.6x
AVGO BroadcomUS$343.947.4%
+US$111.9b		46.3%PE70.5x
AAPL AppleUS$274.621.7%
+US$67.7b		20.6%PE34.2x
ARM Arm HoldingsUS$124.6119.2%
+US$21.4b		-21.0%PE165.2x
MSFT MicrosoftUS$413.600.6%
+US$17.7b		0.5%PE25.8x

Latest News

AMD
US$216.00
Advanced Micro Devices
7D
-12.3%
1Y
95.5%
SHOP
US$118.40
Shopify
7D
-10.4%
1Y
-1.3%
LITE
US$577.15
Lumentum Holdings
7D
36.3%
1Y
604.4%

LITE: AI Optics Hype Will Likely Outpace Real Data Center Demand

Analysts have lifted their price targets and fair value estimates for Lumentum, with one set of assumptions now pointing to fair value of about $433.09. This reflects updated views on revenue growth, profit margins, and future P/E after a series of recent target hikes and upgrades across the Street.
NVDA
US$190.04
NVIDIA
7D
5.4%
1Y
43.1%

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.
GLW
US$131.39
Corning
7D
16.5%
1Y
150.7%
CSCO
US$86.78
Cisco Systems
7D
4.4%
1Y
39.0%

CSCO: AI Networking Strength And Margin Resilience Will Shape Multi Year Returns

Cisco Systems' analyst price targets moved modestly higher to align with an updated fair value of about $87, as analysts emphasize continued strength in Networking, growing artificial intelligence related orders, and expectations for operating margins and returns on equity to remain above average. Analyst Commentary Recent research on Cisco Systems centers on how well the company is executing in its core Networking franchise, the early traction in artificial intelligence related opportunities, and the durability of margins and returns.
ARM
US$124.61
Arm Holdings
7D
19.2%
1Y
-21.0%

ARM: AI Licensing And Physical AI Will Drive Future Upside Potential

The analyst price target for Arm Holdings has been revised lower by $14.99, as analysts factor in slightly softer revenue growth assumptions, a lower future P/E multiple of 82.61, and updated views from recent research that temper earlier optimism around the shares. Analyst Commentary Recent research on Arm Holdings points to a mix of optimism and caution, with several firms adjusting price targets and ratings as they reassess growth assumptions, valuation, and execution risk.
CRM
US$194.03
Salesforce
7D
-8.0%
1Y
-40.7%

CRM: AI And 2026 Setup Will Support Durable Long Term Value

Narrative Update: Salesforce Analysts have made a modest trim to their Salesforce price target, reflecting a fair value move of about US$2 to US$328. This adjustment factors in slightly lower valuation multiples, alongside supportive views on profit margins and the potential impact of artificial intelligence on key performance indicators.
PLTR
US$142.91
Palantir Technologies
7D
-9.5%
1Y
26.9%

Need To Know: Analysts Are Much More Bullish On Palantir Technologies Inc. (NASDAQ:PLTR)

Feb 06
Need To Know: Analysts Are Much More Bullish On Palantir Technologies Inc. (NASDAQ:PLTR)
MSFT
US$413.60
Microsoft
7D
0.6%
1Y
0.5%
NOW
US$103.87
ServiceNow
7D
-12.0%
1Y
-49.2%

We Like ServiceNow's (NYSE:NOW) Earnings For More Than Just Statutory Profit

Feb 05
We Like ServiceNow's (NYSE:NOW) Earnings For More Than Just Statutory Profit
AVGO
US$343.94
Broadcom
7D
7.4%
1Y
46.3%

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.
IBM
US$296.34
International Business Machines
7D
-5.8%
1Y
18.9%

IBM: Broad Price Reset Will Highlight Confluent Deal And AI Initiatives

The analyst price target for International Business Machines has been raised from US$350 to US$390, reflecting updated assumptions around discount rates, margins and future P/E, alongside a broad wave of recent price target increases from multiple research firms. Analyst Commentary Bullish analysts have been lifting their price targets on International Business Machines in quick succession, with several moves clustered around the same dates.
AAPL
US$274.62
Apple
7D
1.7%
1Y
20.6%

AAPL: AI Partnership And Services Engine Will Support Measured Long-Term Risk Reward

The analyst price target for Apple nudged higher to around $292 from about $287 as analysts factor in firmer App Store trends and a series of recent target hikes tied to services strength and the Google Gemini partnership, while also trimming long term revenue growth and P/E assumptions, but slightly lifting profit margin expectations. Analyst Commentary Recent research on Apple has centered on two main themes: the pace of services growth, particularly in the App Store, and the implications of the Google Gemini partnership and rising memory costs for margins and valuation.
MU
US$383.50
Micron Technology
7D
-8.6%
1Y
307.6%

MU: AI Memory Shortages Will Eventually Draw New Capacity And Pressure Returns

Analysts have lifted their fair value estimate for Micron from US$249.31 to US$365.22. They point to higher assumed revenue growth, wider profit margins and a lower future P/E multiple, supported by recent price target increases and generally positive commentary around tight memory supply and AI driven demand.
ACN
US$236.76
Accenture
7D
-11.3%
1Y
-38.8%

ACN: GenAI Modernization Partnerships And Cannibalization Risks Will Steer Future Returns

Analysts have nudged their fair value estimate for Accenture higher to about $292, a move of roughly $3, as recent research highlights renewed interest in the stock, supported by fresh coverage and upward price target revisions tied to GenAI driven enterprise modernization potential. Analyst Commentary Bullish Takeaways Bullish analysts see Accenture as a relatively attractive way to gain exposure to GenAI driven enterprise modernization, with the current valuation framed as reasonable versus its own history.