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U.S. Tech Sector Analysis
UpdatedJan 04, 2025
DataAggregated Company Financials
Companies970
- 7D-0.5%
- 3M8.3%
- 1Y42.4%
- YTD1.8%
Last week, the Tech industry hasn't moved much but NVIDIA is up 5.4% in that time. The past year has been better, since the industry has gained 42% in that time. 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 05 Jan 2025 | US$18.3t | US$2.3t | US$366.9b | 32.7x | 49.8x | 8.1x |
| Tue, 03 Dec 2024 | US$18.2t | US$2.2t | US$361.3b | 33.3x | 50.3x | 8.1x |
| Thu, 31 Oct 2024 | US$17.9t | US$2.2t | US$376.6b | 29.9x | 47.5x | 8.1x |
| Sat, 28 Sep 2024 | US$17.2t | US$2.2t | US$378.0b | 29.7x | 45.6x | 7.9x |
| Mon, 26 Aug 2024 | US$17.0t | US$2.1t | US$367.7b | 29.6x | 46.3x | 8x |
| Wed, 24 Jul 2024 | US$17.0t | US$2.1t | US$363.1b | 30.8x | 46.8x | 8x |
| Fri, 21 Jun 2024 | US$17.3t | US$2.1t | US$360.6b | 29.9x | 47.9x | 8.2x |
| Sun, 19 May 2024 | US$14.9t | US$2.0t | US$337.1b | 29.9x | 44.4x | 7.3x |
| Tue, 16 Apr 2024 | US$14.5t | US$2.0t | US$328.5b | 27.6x | 44.3x | 7.1x |
| Thu, 14 Mar 2024 | US$14.9t | US$2.0t | US$325.2b | 28.1x | 45.7x | 7.3x |
| Sat, 10 Feb 2024 | US$14.6t | US$2.0t | US$308.2b | 26.8x | 47.2x | 7.2x |
| Mon, 08 Jan 2024 | US$12.8t | US$2.1t | US$292.6b | 26x | 43.9x | 6.3x |
| Wed, 06 Dec 2023 | US$12.7t | US$2.1t | US$292.7b | 25x | 43.3x | 6.2x |
| Fri, 03 Nov 2023 | US$11.5t | US$2.0t | US$277.7b | 22.8x | 41.6x | 5.7x |
| Sun, 01 Oct 2023 | US$11.5t | US$2.0t | US$269.8b | 24.5x | 42.5x | 5.6x |
| Tue, 29 Aug 2023 | US$11.7t | US$2.0t | US$270.6b | 24.4x | 43.3x | 5.8x |
| Thu, 27 Jul 2023 | US$12.3t | US$2.0t | US$260.5b | 24.8x | 47.1x | 6x |
| Sat, 24 Jun 2023 | US$11.7t | US$2.0t | US$264.6b | 24.1x | 44.2x | 5.7x |
| Mon, 22 May 2023 | US$10.8t | US$2.0t | US$260.8b | 23.4x | 41.4x | 5.3x |
| Wed, 19 Apr 2023 | US$10.3t | US$2.0t | US$275.0b | 22.6x | 37.4x | 5.1x |
| Fri, 17 Mar 2023 | US$11.2t | US$2.3t | US$299.0b | 22.2x | 37.5x | 4.9x |
| Sun, 12 Feb 2023 | US$11.0t | US$2.2t | US$313.8b | 24x | 35x | 4.9x |
| Tue, 10 Jan 2023 | US$9.9t | US$2.2t | US$327.4b | 22.5x | 30.2x | 4.4x |
| Thu, 08 Dec 2022 | US$10.1t | US$2.2t | US$329.2b | 22.3x | 30.7x | 4.5x |
| Sat, 05 Nov 2022 | US$9.4t | US$2.2t | US$333.5b | 19.8x | 28.3x | 4.2x |
| Mon, 03 Oct 2022 | US$9.5t | US$2.2t | US$345.7b | 19.1x | 27.4x | 4.3x |
| Wed, 31 Aug 2022 | US$10.9t | US$2.2t | US$346.2b | 21.7x | 31.4x | 5x |
| Fri, 29 Jul 2022 | US$11.1t | US$2.2t | US$362.2b | 23.5x | 30.6x | 5.1x |
| Sun, 26 Jun 2022 | US$10.7t | US$2.1t | US$358.6b | 22.9x | 29.9x | 5x |
| Tue, 24 May 2022 | US$10.7t | US$2.1t | US$357.7b | 24.8x | 30x | 5x |
| Thu, 21 Apr 2022 | US$12.2t | US$2.0t | US$345.8b | 24.7x | 35.4x | 6.1x |
| Sat, 19 Mar 2022 | US$12.9t | US$2.0t | US$346.6b | 26.1x | 37.1x | 6.3x |
| Mon, 14 Feb 2022 | US$13.0t | US$2.1t | US$354.4b | 26x | 36.7x | 6.1x |
| Wed, 12 Jan 2022 | US$14.2t | US$2.1t | US$346.6b | 28.6x | 40.9x | 6.6x |
Price to Earnings Ratio
40.9x
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 49.8x which is higher than its 3-year average PE of 39.9x.
- The 3-year average PS ratio of 6.1x is lower than the industry's current PS ratio of 8.1x.
Past Earnings Growth
- Both revenue and earnings for companies in the Information Technology industry have remained mostly flat over the last three years.
- This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Industry Trends
Which industries have driven the changes within the U.S. Tech sector?
| US Market | -0.24% | |
| Tech | -0.49% | |
| Semiconductors | 2.69% | |
| IT | 0.23% | |
| Electronic Equipment and Components | 0.038% | |
| Communications | -0.17% | |
| Software | -1.12% | |
| Tech Hardware | -4.57% | |
Industry PE
- Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 40.1x.
- Analysts are expecting annual earnings growth of 26.9%, which is higher than its past year's earnings decline of 3.6% 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 25.4x.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings decline of 3.6% per year.
- In contrast, the Tech Hardware industry is expected to see its earnings grow by 10% 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$144.47 | 5.4% +US$182.7b | 194.3% | PE56.1x | |
| ARM Arm Holdings | US$141.08 | 9.2% +US$12.5b | 110.4% | PE231.3x | |
| APP AppLovin | US$350.65 | 4.6% +US$5.2b | 820.1% | PE102.3x | |
| MRVL Marvell Technology | US$118.18 | 4.0% +US$3.9b | 97.2% | PS19x | |
| ANET Arista Networks | US$115.20 | 1.9% +US$2.7b | 99.5% | PE54.5x |
