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U.S. Tech Sector Analysis

UpdatedJul 03, 2026
DataAggregated Company Financials
Companies1002
  • 7D-0.8%
  • 3M26.7%
  • 1Y31.5%
  • YTD17.4%

Over the last 7 days, the Tech industry has remained flat, although notably Apple gained 12%. As for the the longer term, the industry is up 32% over the past 12 months. Earnings are forecast to grow by 22% annually.

Sector Valuation and Performance

Has the U.S. Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 03 Jul 2026US$26.6tUS$2.9tUS$645.0b32.9x41.3x9.2x
Sun, 31 May 2026US$23.0tUS$2.8tUS$612.4b36.9x37.6x8.2x
Tue, 28 Apr 2026US$19.3tUS$2.7tUS$549.5b31.9x35.1x7.1x
Thu, 26 Mar 2026US$20.9tUS$2.7tUS$555.3b31.2x37.6x7.7x
Sat, 21 Feb 2026US$21.6tUS$2.6tUS$520.2b29.5x41.5x8.2x
Mon, 19 Jan 2026US$22.4tUS$2.6tUS$500.6b31.7x44.7x8.8x
Wed, 17 Dec 2025US$22.2tUS$2.6tUS$503.6b30.5x44x8.6x
Fri, 14 Nov 2025US$23.2tUS$2.5tUS$478.4b29.7x48.5x9.1x
Sun, 12 Oct 2025US$22.2tUS$2.5tUS$439.1b30.5x50.5x8.9x
Tue, 09 Sep 2025US$20.9tUS$2.5tUS$435.1b29.1x47.9x8.5x
Thu, 07 Aug 2025US$20.7tUS$2.4tUS$413.9b27.4x50x8.6x
Sat, 05 Jul 2025US$20.1tUS$2.4tUS$393.2b29.4x51.1x8.4x
Mon, 02 Jun 2025US$17.9tUS$2.4tUS$390.3b27x46x7.6x
Wed, 30 Apr 2025US$16.1tUS$2.3tUS$385.4b25.4x41.7x6.9x
Fri, 28 Mar 2025US$16.5tUS$2.3tUS$385.4b27.2x42.8x7.1x
Sun, 23 Feb 2025US$18.4tUS$2.3tUS$369.5b30.2x49.8x8x
Tue, 21 Jan 2025US$18.4tUS$2.3tUS$367.0b33.9x50x8.1x
Thu, 19 Dec 2024US$18.9tUS$2.3tUS$363.6b32.2x51.9x8.4x
Sat, 16 Nov 2024US$18.2tUS$2.2tUS$351.3b32.1x51.7x8.1x
Mon, 14 Oct 2024US$17.6tUS$2.2tUS$378.2b30.4x46.6x8.1x
Wed, 11 Sep 2024US$15.8tUS$2.2tUS$375.1b27.5x42.2x7.3x
Fri, 09 Aug 2024US$15.1tUS$2.1tUS$370.2b28.3x40.7x7x
Sun, 07 Jul 2024US$17.5tUS$2.1tUS$362.9b30.4x48.2x8.3x
Tue, 04 Jun 2024US$15.1tUS$2.1tUS$351.1b29.5x43x7.3x
Thu, 02 May 2024US$13.8tUS$2.0tUS$335.4b27.9x41.3x6.8x
Sat, 30 Mar 2024US$14.8tUS$2.0tUS$328.0b28.3x45x7.2x
Mon, 26 Feb 2024US$14.4tUS$2.0tUS$322.4b27.5x44.8x7.1x
Wed, 24 Jan 2024US$14.0tUS$2.0tUS$292.1b26.6x48.1x6.8x
Fri, 22 Dec 2023US$13.2tUS$2.1tUS$292.5b26.4x45.2x6.4x
Sun, 19 Nov 2023US$12.6tUS$2.0tUS$281.5b24.5x44.7x6.2x
Tue, 17 Oct 2023US$11.9tUS$2.0tUS$270.2b24.8x43.9x5.8x
Thu, 14 Sep 2023US$11.9tUS$2.0tUS$273.3b23.8x43.6x5.8x
Sat, 12 Aug 2023US$11.6tUS$2.0tUS$263.3b25.2x43.9x5.7x
Mon, 10 Jul 2023US$11.9tUS$2.0tUS$258.1b24.5x46x5.9x
Price to Earnings Ratio

46x


Total Market Cap: US$11.9tTotal Earnings: US$258.1bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.2x202420252026
Current Industry PE
  • Investors are pessimistic on the American Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 41.3x which is lower than its 3-year average PE of 45.2x.
  • The 3-year average PS ratio of 7.6x is lower than the industry's current PS ratio of 9.2x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 36% per year over the last three years.
  • Revenues for these companies have grown 12% 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 Market1.38%
Tech-0.83%
IT6.98%
Software6.04%
Tech Hardware5.10%
Communications-2.49%
Semiconductors-5.65%
Electronic Equipment and Components-8.57%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 34.4x.
    • Analysts are expecting annual earnings growth of 27.2%, which is higher than its past year's earnings growth of 10.1% per year.
  • Investors are most pessimistic about the Software industry, which is trading below its 3-year average of 50.6x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is better than its past earnings growth rate of 23% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 12% 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$308.6312.2%
+US$491.7b		44.5%PE37x
MSFT MicrosoftUS$390.494.7%
+US$130.1b		-21.7%PE23.2x
PLTR Palantir TechnologiesUS$129.3020.5%
+US$52.8b		-3.8%PE135.9x
PANW Palo Alto NetworksUS$348.0618.8%
+US$44.8b		72.5%PE336.5x
IBM International Business MachinesUS$289.5212.1%
+US$29.4b		-0.8%PE25.4x

Latest News

ARM
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Arm Holdings
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1Y
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Seeking Alpha • 5h

Arm Holdings: Agentic Silicon Arbitrage Eclipsed By SoftBank Liquidation Threat (Rating Downgrade)

Summary Arm Holdings is downgraded to Strong Sell due to extreme valuation and systemic risks, despite its technological leadership in agentic AI CPUs. ARM’s merchant silicon strategy could deliver 10x gross profit per socket and targets $15B AGI CPU revenue by FY2031, but current pricing assumes flawless execution. SoftBank’s 72% equity pledge against an $8.5B margin loan creates existential risk; forced liquidation could trigger a collapse given ARM’s 13.35% float. Major forward risks include supply chain constraints, regulatory probes, ecosystem mutiny, and margin compression, all threatening ARM’s >50% gross margin and premium multiple. Read the full article on Seeking Alpha
SNDK
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Sandisk
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1Y
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MU
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Micron Technology
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-19.6%
1Y
697.7%
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Micron: Not A Bubble, But Peak Cyclical Margins Suggest Caution

Summary Micron Technologies has surged ~8x in a year, yet remains modestly valued at ~10.5x P/E based on current peak quarterly earnings. MU's current profitability and ROE are at historic highs, driven by extraordinary commodity-cycle margins amid a memory shortage. The valuation is not a bubble, but sustainability of current earnings is uncertain; mean reversion and potential oversupply are key risks. MU's investment case hinges on the continuation of the memory supercycle and AI-driven demand, with no margin of safety if conditions normalize. The divergence between P/B and P/E is not a valuation anomaly but a reflection of extraordinary returns on capital driven by temporary supply-constrained economics. Read the full article on Seeking Alpha
ORCL
US$140.27
Oracle
7D
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1Y
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INTC
US$120.35
Intel
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1Y
435.1%
STX
US$820.16
Seagate Technology Holdings
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NOW
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ServiceNow
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1Y
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APP
US$527.06
AppLovin
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18.2%
1Y
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MSFT
US$390.49
Microsoft
7D
4.7%
1Y
-21.7%
AVGO
US$360.45
Broadcom
7D
-4.9%
1Y
31.0%
Narrative Update • Jul 02

AVGO: Custom AI Chip Backlog And Partnerships Will Drive Future Upside

Broadcom's analyst-derived fair value target has shifted higher to about $524 from $477, as analysts factor in stronger AI custom XPU and TPU demand, improved margin assumptions, and a lower future P/E multiple relative to prior expectations. Analyst Commentary Recent research on Broadcom highlights a split between bullish analysts who see the post earnings pullback as an entry point and more cautious voices focused on customer concentration, AI visibility, and competitive shifts.
IBM
US$289.52
International Business Machines
7D
12.1%
1Y
-0.8%
Narrative Update • Jun 30

IBM: AI Infrastructure And Quantum Optionality Will Shape Balanced Future Returns

The updated analyst price target for International Business Machines has been refined lower to about $294 from roughly $302, as analysts factor in slightly slower modeled revenue growth, higher projected profit margins, and a reduced future P/E multiple informed by recent research on AI infrastructure demand, software acceleration, and quantum computing optionality. Analyst Commentary Street research on International Business Machines points to a split view, with several firms leaning more constructive on AI, software and quantum optionality, while others are focusing on execution risks and valuation reset after a strong run.
WDC
US$539.00
Western Digital
7D
-20.2%
1Y
715.7%
Narrative Update • Jun 30

WDC: AI Storage Hype And HDD Pricing Assumptions Will Pressure Future Returns

Western Digital's analyst fair value estimate has been raised from $518.26 to $584.79 as analysts factor in higher assumed revenue growth and a richer future P/E linked to AI driven storage demand, alongside a broad wave of higher price targets across recent research. Analyst Commentary Recent research on Western Digital points to strong interest in the stock from AI focused investors, but there is not complete agreement on how much of the opportunity is already reflected in current expectations.
PLTR
US$129.30
Palantir Technologies
7D
20.5%
1Y
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AAPL
US$308.63
Apple
7D
12.2%
1Y
44.5%
CRWD
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CrowdStrike Holdings
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1Y
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PANW
US$348.06
Palo Alto Networks
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18.8%
1Y
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