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Feb 05
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U.S. Tech Sector Analysis
UpdatedFeb 05, 2025
DataAggregated Company Financials
Companies971
- 7D-2.2%
- 3M-0.03%
- 1Y24.5%
- YTD-1.7%
Over the last 7 days, the Tech industry has dropped 2.2%, driven by declines in Microsoft and NVIDIA of 7.8% and 8.0%, respectively. Meanwhile, Broadcom actually outperformed within the industry, gaining 7.3% in the last week. In the past year, the industry has gained 25%. As for the next few years, earnings are expected to grow by 18% per annum.
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 |
|---|---|---|---|---|---|---|
| Wed, 05 Feb 2025 | US$17.7t | US$2.3t | US$371.0b | 33x | 47.7x | 7.7x |
| Fri, 03 Jan 2025 | US$18.3t | US$2.3t | US$366.8b | 31.9x | 49.9x | 8.1x |
| Sun, 01 Dec 2024 | US$18.2t | US$2.2t | US$361.4b | 32.9x | 50.3x | 8.1x |
| Tue, 29 Oct 2024 | US$17.8t | US$2.2t | US$377.9b | 30.4x | 47.1x | 8x |
| Thu, 26 Sep 2024 | US$17.1t | US$2.2t | US$375.4b | 28.9x | 45.5x | 7.9x |
| Sat, 24 Aug 2024 | US$16.9t | US$2.1t | US$367.4b | 29.6x | 45.9x | 7.9x |
| Mon, 22 Jul 2024 | US$16.7t | US$2.1t | US$363.1b | 30.7x | 46x | 7.9x |
| Wed, 19 Jun 2024 | US$17.2t | US$2.1t | US$360.7b | 29.5x | 47.6x | 8.1x |
| Fri, 17 May 2024 | US$15.0t | US$2.0t | US$336.2b | 29.7x | 44.7x | 7.4x |
| Sun, 14 Apr 2024 | US$14.8t | US$2.0t | US$328.5b | 28x | 45.1x | 7.2x |
| Tue, 12 Mar 2024 | US$14.6t | US$2.0t | US$325.0b | 28.3x | 44.9x | 7.1x |
| Thu, 08 Feb 2024 | US$14.0t | US$2.0t | US$306.8b | 26x | 45.5x | 6.9x |
| Sat, 06 Jan 2024 | US$12.8t | US$2.1t | US$292.6b | 26x | 43.8x | 6.2x |
| Mon, 04 Dec 2023 | US$12.8t | US$2.1t | US$292.3b | 25.4x | 43.8x | 6.2x |
| Wed, 01 Nov 2023 | US$11.3t | US$2.0t | US$277.5b | 22.7x | 40.9x | 5.6x |
| Fri, 29 Sep 2023 | US$11.4t | US$2.0t | US$269.7b | 24.5x | 42.4x | 5.6x |
| Sun, 27 Aug 2023 | US$11.7t | US$2.0t | US$270.6b | 24.4x | 43.3x | 5.8x |
| Tue, 25 Jul 2023 | US$12.2t | US$2.0t | US$258.1b | 25.4x | 47.4x | 6x |
| Thu, 22 Jun 2023 | US$11.7t | US$2.0t | US$264.4b | 24.7x | 44.3x | 5.8x |
| Sat, 20 May 2023 | US$10.8t | US$2.0t | US$260.9b | 23.4x | 41.4x | 5.3x |
| Mon, 17 Apr 2023 | US$10.2t | US$2.0t | US$274.9b | 22.6x | 37.2x | 5x |
| Wed, 15 Mar 2023 | US$10.8t | US$2.3t | US$298.6b | 22.1x | 36.1x | 4.7x |
| Fri, 10 Feb 2023 | US$11.1t | US$2.2t | US$314.2b | 24x | 35.2x | 4.9x |
| Sun, 08 Jan 2023 | US$9.8t | US$2.2t | US$327.4b | 22x | 29.8x | 4.3x |
| Tue, 06 Dec 2022 | US$10.4t | US$2.2t | US$329.3b | 22.8x | 31.5x | 4.6x |
| Thu, 03 Nov 2022 | US$9.6t | US$2.2t | US$333.1b | 20x | 28.9x | 4.3x |
| Sat, 01 Oct 2022 | US$9.5t | US$2.2t | US$346.0b | 19.1x | 27.4x | 4.3x |
| Mon, 29 Aug 2022 | US$11.2t | US$2.2t | US$346.2b | 22.5x | 32.2x | 5.1x |
| Wed, 27 Jul 2022 | US$10.8t | US$2.2t | US$360.2b | 23.2x | 29.9x | 5x |
| Fri, 24 Jun 2022 | US$10.3t | US$2.1t | US$358.5b | 22.7x | 28.9x | 4.8x |
| Sun, 22 May 2022 | US$10.5t | US$2.1t | US$357.7b | 24.5x | 29.4x | 4.9x |
| Tue, 19 Apr 2022 | US$12.1t | US$2.1t | US$345.6b | 24.2x | 34.9x | 5.9x |
| Thu, 17 Mar 2022 | US$12.4t | US$2.0t | US$345.2b | 25.8x | 35.8x | 6.1x |
| Sat, 12 Feb 2022 | US$13.0t | US$2.1t | US$354.1b | 26.3x | 36.8x | 6.1x |
Price to Earnings Ratio
36.8x
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 47.7x which is higher than its 3-year average PE of 40.2x.
- The 3-year average PS ratio of 6.2x is lower than the industry's current PS ratio of 7.7x.
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 2.1% 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 | -0.28% | |
| Tech | -2.16% | |
| IT | 5.40% | |
| Communications | 3.97% | |
| Electronic Equipment and Components | 0.43% | |
| Tech Hardware | -2.17% | |
| Semiconductors | -2.25% | |
| Software | -3.78% | |
Industry PE
- Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 41.1x.
- Analysts are expecting annual earnings growth of 24.7%, which is higher than its past year's earnings growth of 0.4% 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 25% over the next 5 years.
- This is better than its past earnings growth rate of 0.4% 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 | |
|---|---|---|---|---|---|
| AVGO Broadcom | US$222.43 | 7.3% +US$70.6b | 81.9% | PE169x | |
| PLTR Palantir Technologies | US$103.83 | 29.4% +US$53.8b | 374.8% | PE511.8x | |
| IBM International Business Machines | US$264.46 | 17.2% +US$35.9b | 44.2% | PE40.7x | |
| ARM Arm Holdings | US$162.20 | 8.5% +US$13.4b | 122.3% | PE265.9x | |
| TEAM Atlassian | US$316.73 | 15.3% +US$11.4b | 49.9% | PS17.3x |
