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U.S. Tech Sector Analysis
UpdatedMay 13, 2025
DataAggregated Company Financials
Companies932
- 7D6.4%
- 3M-4.1%
- 1Y17.4%
- YTD-3.6%
In the last week, the Tech industry is up 1.1%, with NVIDIA up 2.5%. Meanwhile, Palantir Technologies actually underperformed within the industry, shrinking 5.2% in the last week. This takes the industry's 12 month performance to a gain of 12%. 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 |
|---|---|---|---|---|---|---|
| Tue, 13 May 2025 | US$17.0t | US$2.4t | US$383.9b | 27x | 44.3x | 7.2x |
| Thu, 10 Apr 2025 | US$13.8t | US$2.3t | US$386.8b | 25.2x | 35.8x | 5.9x |
| Sat, 08 Mar 2025 | US$16.7t | US$2.3t | US$383.9b | 28.2x | 43.5x | 7.2x |
| Mon, 03 Feb 2025 | US$18.0t | US$2.3t | US$370.9b | 33.3x | 48.5x | 7.9x |
| Wed, 01 Jan 2025 | US$18.5t | US$2.3t | US$366.8b | 31.9x | 50.4x | 8.2x |
| Fri, 29 Nov 2024 | US$18.0t | US$2.2t | US$361.3b | 33x | 49.8x | 8x |
| Sun, 27 Oct 2024 | US$17.8t | US$2.2t | US$378.1b | 30.3x | 47x | 8x |
| Tue, 24 Sep 2024 | US$17.0t | US$2.2t | US$375.4b | 28.8x | 45.2x | 7.8x |
| Thu, 22 Aug 2024 | US$17.0t | US$2.1t | US$368.0b | 29.6x | 46.2x | 7.9x |
| Sat, 20 Jul 2024 | US$16.9t | US$2.1t | US$363.1b | 30.7x | 46.6x | 8x |
| Mon, 17 Jun 2024 | US$17.0t | US$2.1t | US$360.7b | 29.1x | 47.1x | 8x |
| Wed, 15 May 2024 | US$14.6t | US$2.0t | US$337.3b | 30.3x | 43.2x | 7.2x |
| Fri, 12 Apr 2024 | US$14.5t | US$2.0t | US$328.6b | 28.6x | 44x | 7.1x |
| Sun, 10 Mar 2024 | US$14.7t | US$2.0t | US$325.0b | 28.2x | 45.1x | 7.2x |
| Tue, 06 Feb 2024 | US$14.0t | US$2.0t | US$306.5b | 25.5x | 45.7x | 6.9x |
| Thu, 04 Jan 2024 | US$12.9t | US$2.1t | US$292.6b | 25.6x | 44.1x | 6.3x |
| Sat, 02 Dec 2023 | US$12.8t | US$2.1t | US$292.4b | 25.5x | 43.6x | 6.2x |
| Mon, 30 Oct 2023 | US$11.2t | US$2.0t | US$278.4b | 22.3x | 40.1x | 5.5x |
| Wed, 27 Sep 2023 | US$11.3t | US$2.0t | US$273.1b | 23.8x | 41.4x | 5.5x |
| Fri, 25 Aug 2023 | US$11.6t | US$2.0t | US$270.5b | 24.8x | 43x | 5.7x |
| Sun, 23 Jul 2023 | US$12.2t | US$2.0t | US$258.1b | 25.5x | 47.3x | 6x |
| Tue, 20 Jun 2023 | US$11.9t | US$2.0t | US$264.4b | 24.9x | 45.2x | 5.9x |
| Thu, 18 May 2023 | US$10.6t | US$2.0t | US$262.0b | 23.5x | 40.4x | 5.2x |
| Sat, 15 Apr 2023 | US$10.2t | US$2.0t | US$274.9b | 22.6x | 37.2x | 5x |
| Mon, 13 Mar 2023 | US$10.6t | US$2.3t | US$298.6b | 21.7x | 35.7x | 4.7x |
| Wed, 08 Feb 2023 | US$11.2t | US$2.2t | US$313.8b | 24.8x | 35.8x | 5x |
| Fri, 06 Jan 2023 | US$9.5t | US$2.2t | US$327.4b | 21.6x | 29x | 4.2x |
| Sun, 04 Dec 2022 | US$10.6t | US$2.2t | US$329.3b | 23.3x | 32.1x | 4.7x |
| Tue, 01 Nov 2022 | US$10.1t | US$2.2t | US$331.4b | 20.6x | 30.4x | 4.5x |
| Thu, 29 Sep 2022 | US$9.9t | US$2.2t | US$347.3b | 19.3x | 28.6x | 4.5x |
| Sat, 27 Aug 2022 | US$11.2t | US$2.2t | US$346.3b | 22.5x | 32.2x | 5.1x |
| Mon, 25 Jul 2022 | US$11.0t | US$2.2t | US$360.2b | 23.1x | 30.5x | 5.1x |
| Wed, 22 Jun 2022 | US$10.2t | US$2.1t | US$358.6b | 22.8x | 28.4x | 4.8x |
| Fri, 20 May 2022 | US$10.6t | US$2.1t | US$357.2b | 24.1x | 29.6x | 5x |
Price to Earnings Ratio
29.6x
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 40.9x.
- The 3-year average PS ratio of 6.3x is lower than the industry's current PS ratio of 7.1x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 2.4% per year over the last three years.
- Revenues for these companies have grown 3.4% 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 | 3.92% | |
| Tech | 6.41% | |
| Semiconductors | 9.23% | |
| Electronic Equipment and Components | 7.47% | |
| Tech Hardware | 6.03% | |
| IT | 5.39% | |
| Software | 4.49% | |
| Communications | 4.45% | |
Industry PE
- Investors are most optimistic about the IT industry even though it's trading below its 3-year average PE ratio of 67.3x.
- Analysts are expecting annual earnings growth of 16.2%, which is higher than its past year's earnings growth of 4.5% per year.
- Investors are most pessimistic about the Tech Hardware industry, which is trading close to its 3-year average of 29.5x.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 23% over the next 5 years.
- This is better than its past earnings growth rate of 2.0% per year.
- In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.1% 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 | |
|---|---|---|---|---|---|
| NVDA NVIDIA | US$123.00 | 8.3% +US$230.7b | 34.6% | PE41.2x | |
| AAPL Apple | US$210.79 | 6.0% +US$177.7b | 13.2% | PE32.4x | |
| MSFT Microsoft | US$449.26 | 3.7% +US$118.5b | 7.9% | PE34.6x | |
| AVGO Broadcom | US$221.58 | 10.4% +US$98.1b | 65.7% | PE100.2x | |
| PLTR Palantir Technologies | US$118.46 | 8.8% +US$22.7b | 452.5% | PE489.9x |
