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U.S. Tech Sector Analysis

UpdatedSep 05, 2025
DataAggregated Company Financials
Companies943
  • 7D-1.5%
  • 3M12.2%
  • 1Y30.4%
  • YTD13.7%

Over the last 7 days, the Tech industry has dropped 1.5%, driven by a pullback from NVIDIA of 4.7%. This takes the industry's 12 month performance to a gain of 30%. 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
Fri, 05 Sep 2025US$20.8tUS$2.5tUS$429.6b28.3x48.3x8.5x
Sun, 03 Aug 2025US$20.3tUS$2.4tUS$413.0b27.6x49.1x8.4x
Tue, 01 Jul 2025US$19.6tUS$2.4tUS$393.2b28.8x49.8x8.2x
Thu, 29 May 2025US$18.0tUS$2.4tUS$386.0b27.4x46.6x7.6x
Sat, 26 Apr 2025US$15.8tUS$2.3tUS$386.0b26x41x6.8x
Mon, 24 Mar 2025US$16.6tUS$2.3tUS$386.9b27.2x42.9x7.1x
Wed, 19 Feb 2025US$18.9tUS$2.3tUS$369.6b32.1x51x8.2x
Fri, 17 Jan 2025US$18.3tUS$2.3tUS$367.0b33.3x49.8x8.1x
Sun, 15 Dec 2024US$18.8tUS$2.3tUS$363.6b32.5x51.6x8.3x
Tue, 12 Nov 2024US$18.3tUS$2.2tUS$349.2b33.7x52.3x8.2x
Thu, 10 Oct 2024US$17.4tUS$2.2tUS$378.2b30.3x46x8x
Sat, 07 Sep 2024US$15.6tUS$2.2tUS$374.5b27.2x41.7x7.2x
Mon, 05 Aug 2024US$15.6tUS$2.1tUS$363.3b29.6x42.9x7.3x
Wed, 03 Jul 2024US$17.1tUS$2.1tUS$362.9b30.7x47x8.1x
Fri, 31 May 2024US$15.1tUS$2.1tUS$351.1b29.8x43.1x7.3x
Sun, 28 Apr 2024US$14.2tUS$2.1tUS$335.6b28.4x42.3x6.9x
Tue, 26 Mar 2024US$14.9tUS$2.0tUS$328.6b27.7x45.5x7.3x
Thu, 22 Feb 2024US$14.0tUS$2.0tUS$311.6b27.1x44.9x6.9x
Sat, 20 Jan 2024US$13.9tUS$2.0tUS$292.0b26.4x47.4x6.8x
Mon, 18 Dec 2023US$13.4tUS$2.1tUS$293.6b26.5x45.5x6.5x
Wed, 15 Nov 2023US$12.3tUS$2.0tUS$280.4b24.2x43.9x6x
Fri, 13 Oct 2023US$12.0tUS$2.0tUS$270.1b24.7x44.2x5.9x
Sun, 10 Sep 2023US$12.0tUS$2.0tUS$272.9b24.3x43.8x5.9x
Tue, 08 Aug 2023US$11.9tUS$2.0tUS$262.2b25.3x45.5x5.9x
Thu, 06 Jul 2023US$12.0tUS$2.0tUS$258.1b24.7x46.3x5.9x
Sat, 03 Jun 2023US$11.5tUS$2.0tUS$264.1b24.6x43.7x5.7x
Mon, 01 May 2023US$10.3tUS$2.0tUS$265.6b20.9x38.9x5.1x
Wed, 29 Mar 2023US$9.9tUS$2.0tUS$278.2b22.3x35.7x4.9x
Fri, 24 Feb 2023US$10.9tUS$2.3tUS$295.6b23.4x36.7x4.8x
Sun, 22 Jan 2023US$10.3tUS$2.2tUS$327.5b23.5x31.5x4.6x
Tue, 20 Dec 2022US$9.8tUS$2.3tUS$330.1b21.6x29.7x4.4x
Thu, 17 Nov 2022US$10.3tUS$2.2tUS$333.3b22.5x30.9x4.6x
Sat, 15 Oct 2022US$9.2tUS$2.2tUS$345.2b18.6x26.8x4.2x
Mon, 12 Sep 2022US$10.9tUS$2.2tUS$346.8b21.3x31.5x5x
Price to Earnings Ratio

31.5x


Total Market Cap: US$10.9tTotal Earnings: US$346.8bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 42.9x202320242025
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 48.3x which is higher than its 3-year average PE of 42.9x.
  • The 3-year average PS ratio of 6.6x is lower than the industry's current PS ratio of 8.5x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 7.4% per year over the last three years.
  • Revenues for these companies have grown 4.0% 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-0.008%
Tech-1.50%
Tech Hardware3.00%
Communications1.01%
Electronic Equipment and Components-0.086%
Software-1.66%
IT-1.73%
Semiconductors-3.70%
Industry PE
  • Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 47.7x.
    • Analysts are expecting annual earnings growth of 23.9%, which is higher than its past year's earnings decline of 0.7% per year.
  • Investors are most pessimistic about the Tech Hardware industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 30.5x.
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 0.7% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.4% 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$239.783.1%
+US$107.1b		7.8%PE35.8x
ADSK AutodeskUS$319.9310.9%
+US$6.7b		27.1%PE65.6x
ANET Arista NetworksUS$141.173.6%
+US$6.2b		71.9%PE54.6x
APP AppLovinUS$499.973.4%
+US$5.5b		466.9%PE67.3x
SHOP ShopifyUS$145.152.6%
+US$4.7b		107.0%PE80.4x

Latest News

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AppLovin
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Investors Appear Satisfied With AppLovin Corporation's (NASDAQ:APP) Prospects As Shares Rocket 32%

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STX
US$183.98
Seagate Technology Holdings
7D
9.9%
1Y
87.8%
AVGO
US$306.10
Broadcom
7D
-0.8%
1Y
100.3%
MSFT
US$507.97
Microsoft
7D
-0.3%
1Y
24.4%
CIEN
US$116.92
Ciena
7D
19.4%
1Y
123.0%
ORCL
US$223.00
Oracle
7D
-7.2%
1Y
56.4%

Multi-cloud Partnerships With AWS, Google, And Azure Will Accelerate Future Prospects

Analysts highlight Oracle's accelerating AI-driven growth, bolstered by major cloud contracts and robust application demand, though some caution over valuation as these positives appear priced in—leaving the consensus price target unchanged at $244.31. Analyst Commentary Bullish analysts point to Oracle's emergence as a structural winner in artificial intelligence, with unique OCI architecture driving a surge in AI-related demand and a pronounced inflection in growth.
CRM
US$244.01
Salesforce
7D
-4.1%
1Y
-0.9%

AI Automation And Digital Reinvention Will Drive Industry Transformation

Amid concerns about softer near-term demand, subdued enterprise renewals, and limited immediate AI revenue impact—offset by long-term optimism around new product themes and margin expansion—analyst sentiment on Salesforce has turned more cautious, resulting in a consensus price target that remains unchanged at $344.64. Analyst Commentary Analysts are lowering price targets amid softer near-term demand signals, partner feedback indicating underwhelming Q2 activity, and subdued expectations for renewal business, particularly at the enterprise level.
AAPL
US$239.78
Apple
7D
3.1%
1Y
7.8%

Emerging Markets And AI Integration Will Expand Global Reach

Analysts remain constructive on Apple given the positive implications of the Google antitrust ruling for Services revenue, growing confidence in Services' gross profit contribution, and medium-term catalysts from anticipated hardware innovation, though muted iPhone momentum and a cautious reception to AI integration temper near-term enthusiasm; as a result, the consensus price target is unchanged at $235.53. Analyst Commentary The recent Google antitrust ruling is seen as a major positive for Apple, allowing continued substantial payments from Google for default Safari search placement, annual renegotiation rights, and providing leverage for future search engine or AI partnerships; the outcome was less restrictive than feared and supports stronger Services revenue confidence.
FIG
US$54.56
Figma
7D
-23.4%
1Y
n/a
NVDA
US$171.66
NVIDIA
7D
-4.7%
1Y
60.1%

NVDA FY 25 Result

Refer to this link below https://www.perplexity.ai/search/calculate-the-intrinsic-value-Nmfz3nYcT9qHYIB7iUI6Vg
SHOP
US$145.15
Shopify
7D
2.6%
1Y
107.0%
ADSK
US$319.93
Autodesk
7D
10.9%
1Y
27.1%

Investments In Cloud And AI Will Expand Future Customer Ecosystem

Driven by Autodesk’s stronger-than-expected Q2 results, upgraded guidance, long-term margin expansion targets, and improved revenue prospects—partially offset by macro and margin model concerns—the consensus analyst price target has increased from $342.07 to $356.55. Analyst Commentary Stronger-than-expected fiscal Q2 results and upgraded full-year (FY26) guidance, with revenue growth accelerating and beats across key operating metrics.
WDC
US$90.49
Western Digital
7D
10.3%
1Y
44.5%
AMD
US$161.79
Advanced Micro Devices
7D
-4.0%
1Y
16.0%

AI And Data Centers Will Face Risks Yet Unlock Potential

Buoyed by accelerating AI server demand, renewed access to the Chinese AI chip market, and strong quarterly execution, analysts have raised Advanced Micro Devices’ consensus price target from $178.78 to $184.67. Analyst Commentary Bullish analysts cite a significant ramp in AI server demand from hyperscalers, with accelerating momentum in AMD's MI350 GPU series and expectations for the future launch of the MI400 architecture to drive revenue outperformance and market share gains through 2026.
ANET
US$141.17
Arista Networks
7D
3.6%
1Y
71.9%
TXN
US$187.29
Texas Instruments
7D
-8.2%
1Y
-7.1%

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Aug 01
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