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U.S. Tech Sector Analysis
UpdatedFeb 17, 2025
DataAggregated Company Financials
Companies966
- 7D3.6%
- 3M5.9%
- 1Y28.9%
- YTD2.9%
Apple is up 7.5%, leading the way for the Tech industry, which has gained 3.6%. Meanwhile, Arista Networks actually underperformed within the industry, shrinking 9.8% in the last week. In the last 12 months, the industry was up 29%. Earnings are forecast to grow by 18% annually.
Sector Valuation and Performance
Has the U.S. Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 17 Feb 2025 | US$18.9t | US$2.3t | US$369.9b | 32.4x | 51x | 8.2x |
| Wed, 15 Jan 2025 | US$17.9t | US$2.3t | US$367.2b | 32.1x | 48.7x | 7.9x |
| Fri, 13 Dec 2024 | US$18.8t | US$2.3t | US$362.8b | 32.6x | 51.7x | 8.3x |
| Sun, 10 Nov 2024 | US$18.3t | US$2.2t | US$352.6b | 33.3x | 51.8x | 8.2x |
| Tue, 08 Oct 2024 | US$17.2t | US$2.2t | US$378.1b | 29.7x | 45.6x | 8x |
| Thu, 05 Sep 2024 | US$16.1t | US$2.2t | US$378.4b | 28.4x | 42.4x | 7.4x |
| Sat, 03 Aug 2024 | US$16.0t | US$2.1t | US$363.4b | 29.6x | 43.9x | 7.5x |
| Mon, 01 Jul 2024 | US$16.9t | US$2.1t | US$362.8b | 30x | 46.4x | 8x |
| Wed, 29 May 2024 | US$15.4t | US$2.1t | US$349.9b | 30.5x | 43.9x | 7.5x |
| Fri, 26 Apr 2024 | US$13.9t | US$2.0t | US$328.7b | 28.4x | 42.4x | 6.8x |
| Sun, 24 Mar 2024 | US$14.9t | US$2.0t | US$328.6b | 27.8x | 45.4x | 7.3x |
| Tue, 20 Feb 2024 | US$14.2t | US$2.0t | US$310.2b | 27.5x | 45.9x | 7x |
| Thu, 18 Jan 2024 | US$13.4t | US$2.0t | US$292.0b | 25.4x | 45.8x | 6.5x |
| Sat, 16 Dec 2023 | US$13.4t | US$2.1t | US$293.6b | 26.5x | 45.5x | 6.5x |
| Mon, 13 Nov 2023 | US$12.4t | US$2.0t | US$279.7b | 23.4x | 44.2x | 6.1x |
| Wed, 11 Oct 2023 | US$11.9t | US$2.0t | US$269.8b | 25.1x | 43.9x | 5.8x |
| Fri, 08 Sep 2023 | US$11.9t | US$2.0t | US$272.8b | 24x | 43.8x | 5.9x |
| Sun, 06 Aug 2023 | US$11.9t | US$2.0t | US$262.2b | 25.6x | 45.4x | 5.9x |
| Tue, 04 Jul 2023 | US$12.0t | US$2.0t | US$258.1b | 25.2x | 46.6x | 5.9x |
| Thu, 01 Jun 2023 | US$11.4t | US$2.0t | US$262.7b | 23.9x | 43.5x | 5.6x |
| Sat, 29 Apr 2023 | US$10.3t | US$2.0t | US$265.1b | 20.9x | 38.9x | 5.1x |
| Mon, 27 Mar 2023 | US$10.1t | US$2.0t | US$278.4b | 22.1x | 36.1x | 4.9x |
| Wed, 22 Feb 2023 | US$10.7t | US$2.3t | US$297.0b | 23.4x | 36x | 4.8x |
| Fri, 20 Jan 2023 | US$10.0t | US$2.2t | US$327.5b | 23.3x | 30.6x | 4.5x |
| Sun, 18 Dec 2022 | US$10.0t | US$2.3t | US$329.9b | 21.7x | 30.2x | 4.4x |
| Tue, 15 Nov 2022 | US$10.3t | US$2.2t | US$333.3b | 21.9x | 31x | 4.6x |
| Thu, 13 Oct 2022 | US$9.3t | US$2.2t | US$345.2b | 18.6x | 26.8x | 4.2x |
| Sat, 10 Sep 2022 | US$10.9t | US$2.2t | US$346.8b | 21.3x | 31.5x | 5x |
| Mon, 08 Aug 2022 | US$11.8t | US$2.2t | US$350.7b | 23x | 33.8x | 5.5x |
| Wed, 06 Jul 2022 | US$10.4t | US$2.2t | US$359.4b | 22.1x | 28.8x | 4.8x |
| Fri, 03 Jun 2022 | US$11.2t | US$2.1t | US$358.8b | 25.4x | 31.1x | 5.2x |
| Sun, 01 May 2022 | US$11.4t | US$2.1t | US$352.3b | 23.8x | 32.5x | 5.5x |
| Tue, 29 Mar 2022 | US$13.2t | US$2.1t | US$343.8b | 25.8x | 38.4x | 6.4x |
| Thu, 24 Feb 2022 | US$12.6t | US$2.1t | US$356.1b | 25.1x | 35.3x | 5.9x |
Price to Earnings Ratio
35.3x
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 51.0x which is higher than its 3-year average PE of 40.3x.
- The 3-year average PS ratio of 6.2x is lower than the industry's current PS ratio of 8.2x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 2.3% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the U.S. Tech sector?
| US Market | 1.50% | |
| Tech | 3.58% | |
| Tech Hardware | 7.38% | |
| Semiconductors | 4.86% | |
| IT | 2.54% | |
| Software | 1.30% | |
| Electronic Equipment and Components | -0.54% | |
| Communications | -2.58% | |
Industry PE
- Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 41.5x.
- Analysts are expecting annual earnings growth of 24.4%, which is higher than its past year's earnings decline of 1.6% per year.
- Investors are most pessimistic about the Electronic Equipment and Components industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 25.5x.
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 1.6% per year.
- 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| AAPL Apple | US$244.60 | 7.4% +US$254.6b | 34.2% | PE38.2x | |
| NVDA NVIDIA | US$138.85 | 6.9% +US$220.7b | 91.2% | PE53.9x | |
| APP AppLovin | US$510.13 | 32.7% +US$44.5b | 752.1% | PE110x | |
| INTC Intel | US$23.60 | 23.6% +US$19.5b | -45.8% | PS1.9x | |
| SHOP Shopify | US$128.35 | 7.0% +US$11.3b | 57.9% | PE82.3x |
