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U.S. Tech Sector Analysis

UpdatedAug 15, 2026
DataAggregated Company Financials
Companies980
  • 7D0.4%
  • 3M6.7%
  • 1Y33.0%
  • YTD25.1%

Last week, the Tech industry hasn't moved much but Micron Technology is up 11% in that time. As for the the longer term, the industry is up 33% over the past 12 months. Looking forward, earnings are forecast to grow by 23% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 15 Aug 2026US$22.8tUS$3.0tUS$634.7b34.6x36x7.7x
Mon, 13 Jul 2026US$22.1tUS$2.9tUS$645.3b34.3x34.2x7.7x
Wed, 10 Jun 2026US$22.0tUS$2.8tUS$617.4b34.8x35.7x7.8x
Fri, 08 May 2026US$20.3tUS$2.8tUS$568.6b34.5x35.7x7.4x
Sun, 05 Apr 2026US$20.8tUS$2.7tUS$554.9b30x37.6x7.7x
Tue, 03 Mar 2026US$21.2tUS$2.7tUS$542.4b29.7x39.1x8x
Thu, 29 Jan 2026US$22.7tUS$2.6tUS$501.0b31.2x45.4x8.9x
Sat, 27 Dec 2025US$22.8tUS$2.6tUS$506.9b30.7x45.1x8.8x
Mon, 24 Nov 2025US$21.6tUS$2.6tUS$492.6b28.5x43.8x8.4x
Wed, 22 Oct 2025US$22.9tUS$2.5tUS$439.2b31.6x52x9.1x
Fri, 19 Sep 2025US$21.8tUS$2.5tUS$435.4b30.9x50x8.8x
Sun, 17 Aug 2025US$21.1tUS$2.4tUS$418.3b27.8x50.5x8.7x
Tue, 15 Jul 2025US$20.0tUS$2.4tUS$393.2b28.7x50.9x8.4x
Thu, 12 Jun 2025US$18.7tUS$2.4tUS$391.8b28x47.6x7.8x
Sat, 10 May 2025US$16.8tUS$2.3tUS$383.7b25.7x43.7x7.1x
Mon, 07 Apr 2025US$14.1tUS$2.3tUS$386.8b24.1x36.4x6x
Wed, 05 Mar 2025US$17.0tUS$2.3tUS$378.7b28.7x44.8x7.3x
Fri, 31 Jan 2025US$18.2tUS$2.3tUS$370.8b33.5x49x8x
Sun, 29 Dec 2024US$18.7tUS$2.3tUS$366.9b32.1x51x8.3x
Tue, 26 Nov 2024US$18.1tUS$2.2tUS$361.3b33.5x50.2x8.1x
Thu, 24 Oct 2024US$17.9tUS$2.2tUS$377.9b29.7x47.4x8.3x
Sat, 21 Sep 2024US$17.1tUS$2.2tUS$375.4b28.7x45.4x7.9x
Mon, 19 Aug 2024US$16.8tUS$2.1tUS$368.0b29.1x45.7x7.9x
Wed, 17 Jul 2024US$17.7tUS$2.1tUS$363.1b32x48.6x8.4x
Fri, 14 Jun 2024US$16.9tUS$2.1tUS$361.8b29.5x46.7x8x
Sun, 12 May 2024US$14.5tUS$2.0tUS$337.1b30.1x43x7.1x
Tue, 09 Apr 2024US$14.6tUS$2.0tUS$328.6b28.6x44.4x7.1x
Thu, 07 Mar 2024US$14.5tUS$2.0tUS$327.8b28.1x44.2x7.1x
Sat, 03 Feb 2024US$14.2tUS$2.1tUS$305.8b26.6x46.3x6.9x
Mon, 01 Jan 2024US$13.4tUS$2.1tUS$292.6b26.1x45.9x6.5x
Wed, 29 Nov 2023US$12.7tUS$2.0tUS$290.3b24.9x43.8x6.2x
Fri, 27 Oct 2023US$11.1tUS$2.0tUS$279.1b22.3x39.9x5.5x
Sun, 24 Sep 2023US$11.5tUS$2.0tUS$273.1b24.4x41.9x5.6x
Tue, 22 Aug 2023US$11.4tUS$2.0tUS$264.5b24.1x43.2x5.6x
Price to Earnings Ratio

43.2x


Total Market Cap: US$11.4tTotal Earnings: US$264.5bTotal 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 36.0x 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 Market0.58%
Tech0.40%
IT2.58%
Software0.77%
Tech Hardware0.70%
Semiconductors0.13%
Electronic Equipment and Components-0.52%
Communications-1.57%
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 23.8%, 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 9.4% 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
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
NVDA NVIDIAUS$225.160.5%
+US$29.1b		24.8%PE34.2x

Latest News

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Intel
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MSFT
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Microsoft
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STX
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Seagate Technology Holdings
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Lam Research
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AVGO
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Broadcom
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1Y
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Seeking Alpha • Aug 14

Broadcom: XPU Growth Trajectory Underestimated, Stock A Bargain

Summary After last year's 80%+ total return, Broadcom stock has significantly lagged the broad semiconductor sector on a YTD basis. However, the market is underestimating the rapid growth trajectory of the company's XPU business. Meanwhile, in the upcoming Q3 report (due Sept 2), its high-margin software segment is expected to grow revenue 30%+. Broadcom has built a wide moat around its businesses, has a very strong free cash flow profile, and is one of the best dividend growth stocks in the entire S&P 500. I am increasing my free cash flow estimates for FY26 and FY27, increasing my 12-month price target from $550 to $600, and reiterating my Strong Buy rating. Read the full article on Seeking Alpha
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AMAT
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Applied Materials
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1Y
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Narrative Update • Aug 13

AMAT: Elevated AI WFE Expectations Will Trigger Future P/E Multiple Compression

Applied Materials' updated analyst price target has edged lower, as higher modeled revenue growth and strong wafer fab equipment demand are now balanced by slightly reduced profit margin assumptions and a modestly lower future P/E multiple in line with recent Street research. Analyst Commentary Recent Street research on Applied Materials reflects strong enthusiasm around wafer fab equipment demand and AI related spending, but it also shows a pocket of caution that some investors may want to weigh alongside the bullish targets.
AMD
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Advanced Micro Devices
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COHR
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Coherent
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SNDK
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Sandisk
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NVDA
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NVIDIA
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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
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Cadence Design Systems
7D
-4.3%
1Y
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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.
AAPL
US$305.93
Apple
7D
-2.4%
1Y
32.1%
Seeking Alpha • Aug 12

Apple: A Rare Downgrade That Has Nothing To Do With AI

Summary Apple Inc. delivered record June quarter results, but margin erosion and a cautious outlook prompted a downgrade from Strong Buy to Hold. AAPL's gross margin, excluding tariff refunds, is declining sharply—projected to fall nearly 3 percentage points in six months as memory costs surge. Supply constraints and rising component prices are set to pressure AAPL's September quarter results, with revenue growth guided below Street expectations. China revenue has rebounded to record levels even before Apple Intelligence launches, but near-term margin and supply headwinds outweigh this positive. Read the full article on Seeking Alpha
TXN
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Texas Instruments
7D
-2.3%
1Y
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New Narrative • Aug 09

TXN — Fair Value $285

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