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U.S. Tech Sector Analysis

UpdatedAug 16, 2026
DataAggregated Company Financials
Companies979
  • 7D0.5%
  • 3M7.8%
  • 1Y33.7%
  • YTD25.6%

The Tech is pretty flat in the last 7 days, but Micron Technology has stood out, gaining 11%. As for the the longer term, the industry is up 34% over the past 12 months. As for the next few years, earnings are expected to grow by 23% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 16 Aug 2026US$22.7tUS$3.0tUS$636.0b34.6x35.7x7.6x
Tue, 14 Jul 2026US$27.0tUS$2.9tUS$645.3b34.6x41.8x9.3x
Thu, 11 Jun 2026US$21.5tUS$2.8tUS$617.5b34.4x34.8x7.6x
Sat, 09 May 2026US$20.6tUS$2.8tUS$570.4b35.4x36.2x7.4x
Mon, 06 Apr 2026US$20.8tUS$2.7tUS$554.9b30x37.6x7.7x
Wed, 04 Mar 2026US$21.4tUS$2.7tUS$539.7b29.5x39.7x8x
Fri, 30 Jan 2026US$22.9tUS$2.6tUS$520.3b30.8x44x8.8x
Sun, 28 Dec 2025US$22.9tUS$2.6tUS$506.9b30.7x45.1x8.8x
Tue, 25 Nov 2025US$21.7tUS$2.6tUS$492.7b29x44x8.4x
Thu, 23 Oct 2025US$22.8tUS$2.5tUS$439.2b30x52x9.1x
Sat, 20 Sep 2025US$22.0tUS$2.5tUS$435.4b31.4x50.4x8.9x
Mon, 18 Aug 2025US$21.1tUS$2.4tUS$418.3b27.8x50.5x8.7x
Wed, 16 Jul 2025US$20.0tUS$2.4tUS$393.2b28.9x50.9x8.4x
Fri, 13 Jun 2025US$18.7tUS$2.4tUS$390.6b28.1x47.8x7.8x
Sun, 11 May 2025US$16.8tUS$2.3tUS$383.7b25.7x43.7x7.1x
Tue, 08 Apr 2025US$14.2tUS$2.3tUS$386.8b24.2x36.6x6.1x
Thu, 06 Mar 2025US$17.0tUS$2.3tUS$378.8b28.9x44.9x7.3x
Sat, 01 Feb 2025US$18.1tUS$2.3tUS$370.8b33.3x48.8x7.9x
Mon, 30 Dec 2024US$18.7tUS$2.3tUS$366.9b32.1x51x8.3x
Wed, 27 Nov 2024US$18.1tUS$2.2tUS$361.4b33.1x50x8x
Fri, 25 Oct 2024US$17.7tUS$2.2tUS$376.4b30x46.9x8.1x
Sun, 22 Sep 2024US$17.0tUS$2.2tUS$375.4b28.8x45.2x7.8x
Tue, 20 Aug 2024US$16.8tUS$2.1tUS$368.0b29.8x45.7x7.9x
Thu, 18 Jul 2024US$17.4tUS$2.1tUS$363.1b31.5x48x8.2x
Sat, 15 Jun 2024US$16.9tUS$2.1tUS$360.4b29.2x46.9x8x
Mon, 13 May 2024US$14.5tUS$2.0tUS$337.0b30.1x43x7.1x
Wed, 10 Apr 2024US$14.6tUS$2.0tUS$328.6b28.8x44.3x7.1x
Fri, 08 Mar 2024US$14.9tUS$2.0tUS$327.8b28.5x45.5x7.3x
Sun, 04 Feb 2024US$14.2tUS$2.1tUS$305.8b26.6x46.3x6.9x
Tue, 02 Jan 2024US$13.4tUS$2.1tUS$292.6b26.1x45.9x6.5x
Thu, 30 Nov 2023US$12.7tUS$2.0tUS$291.1b25.5x43.8x6.2x
Sat, 28 Oct 2023US$11.2tUS$2.0tUS$278.4b22.2x40.1x5.5x
Mon, 25 Sep 2023US$11.5tUS$2.0tUS$273.1b24.4x41.9x5.6x
Wed, 23 Aug 2023US$11.7tUS$2.0tUS$264.8b24.4x44x5.7x
Price to Earnings Ratio

44x


Total Market Cap: US$11.7tTotal Earnings: US$264.8bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.9x202420252026
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 35.7x which is lower than its 3-year average PE of 44.9x.
  • The industry is trading close to its 3-year average PS ratio of 7.7x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 34% per year over the last three years.
  • Revenues for these companies have grown 14% 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 Market0.63%
Tech0.50%
IT2.59%
Tech Hardware0.85%
Software0.81%
Semiconductors0.26%
Electronic Equipment and Components-0.44%
Communications-1.53%
Industry PE
  • Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 36.0x.
    • Analysts are expecting annual earnings growth of 24.4%, which is higher than its past year's earnings growth of 14.3% per year.
  • Investors are most pessimistic about the Semiconductors industry, which is trading below its 3-year average of 53.7x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 9.5% 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
MU Micron TechnologyUS$971.6610.7%
+US$106.3b		703.9%PE21.7x
SNDK SandiskUS$1.64k35.4%
+US$63.9b		3,584.6%PE21.4x
AMD Advanced Micro DevicesUS$514.396.4%
+US$50.7b		189.8%PE129.8x
STX Seagate Technology HoldingsUS$973.4419.8%
+US$36.4b		530.3%PE69.3x
WDC Western DigitalUS$508.8017.2%
+US$33.7b		577.9%PE19.8x

Latest News

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SNDK
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Sandisk
7D
35.4%
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NVDA
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NVIDIA
7D
0.5%
1Y
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MU
US$971.66
Micron Technology
7D
10.7%
1Y
703.9%
New Narrative • Aug 13

Micron - The Memory Bottleneck Behind the AI Supercycle

Rating: Buy / cyclical AI infrastructure leader Style: Semiconductor memory supercycle, HBM, data-center infrastructure Core debate: Has AI structurally changed the memory cycle, or is Micron showing peak-cycle earnings that the market should not capitalize too aggressively? Executive View Micron Technology has become one of the most important “ picks and shovels ” companies in the AI buildout.
CDNS
US$324.82
Cadence Design Systems
7D
-4.3%
1Y
-7.2%
Narrative Update • Aug 13

CDNS: Agentic AI Design Tools And Digital Twins Will Drive Future Upside

Cadence Design Systems' updated analyst price target moved modestly higher, supported by analysts who point to solid Q2 execution, raised guidance, and long term AI related demand drivers, even as questions remain around valuation at roughly a 63x 2027 P/E and the timing of AI monetization. Analyst Commentary Analysts are broadly positive on Cadence Design Systems after Q2, with many lifting price targets and pointing to a mix of AI exposure, strong core electronic design automation demand, and a growing backlog, while a minority remains more measured given the current P/E and open questions on AI monetization and margins.
WDC
US$508.80
Western Digital
7D
17.2%
1Y
577.9%
TXN
US$279.58
Texas Instruments
7D
-2.3%
1Y
43.7%
New Narrative • Aug 09

TXN — Fair Value $285

The unglamorous silicon everything electrical depends on. TI's moat is manufacturing, not design: 300mm scale cost leadership, 100,000+ SKUs sold direct, product lifecycles measured in decades.