Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Tech Sector Analysis

UpdatedJun 01, 2026
DataAggregated Company Financials
Companies995
  • 7D4.7%
  • 3M31.9%
  • 1Y55.8%
  • YTD24.7%

In the last week, the Tech industry is up 4.7%, with Micron Technology leading the way, up 29%. This takes the industry's 12 month performance to a gain of 56%. Earnings are forecast to grow by 21% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 01 Jun 2026US$23.0tUS$2.8tUS$612.4b36.9x37.6x8.2x
Wed, 29 Apr 2026US$19.2tUS$2.7tUS$549.7b31.1x34.8x7.1x
Fri, 27 Mar 2026US$20.9tUS$2.7tUS$555.3b29.7x37.7x7.7x
Sun, 22 Feb 2026US$21.7tUS$2.6tUS$520.2b29.5x41.7x8.2x
Tue, 20 Jan 2026US$22.4tUS$2.6tUS$500.6b31.7x44.7x8.8x
Thu, 18 Dec 2025US$22.2tUS$2.6tUS$503.6b30.4x44x8.6x
Sat, 15 Nov 2025US$22.6tUS$2.5tUS$479.1b29.9x47.1x8.9x
Mon, 13 Oct 2025US$22.2tUS$2.5tUS$439.1b30.5x50.5x8.9x
Wed, 10 Sep 2025US$21.1tUS$2.5tUS$435.1b29.3x48.4x8.6x
Fri, 08 Aug 2025US$20.9tUS$2.4tUS$415.3b27.6x50.3x8.6x
Sun, 06 Jul 2025US$20.1tUS$2.4tUS$393.2b29.4x51.1x8.4x
Tue, 03 Jun 2025US$17.9tUS$2.4tUS$390.2b26.5x46x7.6x
Thu, 01 May 2025US$16.1tUS$2.3tUS$385.2b25.3x41.9x6.9x
Sat, 29 Mar 2025US$16.3tUS$2.3tUS$385.4b26.7x42.4x7x
Mon, 24 Feb 2025US$18.4tUS$2.3tUS$369.5b30.2x49.8x8x
Wed, 22 Jan 2025US$18.4tUS$2.3tUS$367.0b34.4x50x8.1x
Fri, 20 Dec 2024US$18.3tUS$2.3tUS$366.6b32x49.8x8.1x
Sun, 17 Nov 2024US$17.7tUS$2.2tUS$351.2b31.6x50.4x7.9x
Tue, 15 Oct 2024US$17.6tUS$2.2tUS$378.2b30.4x46.6x8.1x
Thu, 12 Sep 2024US$16.5tUS$2.2tUS$375.1b28x44.1x7.6x
Sat, 10 Aug 2024US$15.6tUS$2.1tUS$370.1b27.5x42.1x7.3x
Mon, 08 Jul 2024US$17.5tUS$2.1tUS$362.9b30.4x48.2x8.3x
Wed, 05 Jun 2024US$15.2tUS$2.1tUS$351.2b29.4x43.4x7.4x
Fri, 03 May 2024US$13.9tUS$2.1tUS$336.7b28.1x41.3x6.8x
Sun, 31 Mar 2024US$14.8tUS$2.0tUS$328.5b28.3x44.9x7.2x
Tue, 27 Feb 2024US$14.5tUS$2.0tUS$322.6b28.2x44.9x7.1x
Thu, 25 Jan 2024US$14.1tUS$2.0tUS$293.0b26.5x48.1x6.9x
Sat, 23 Dec 2023US$13.4tUS$2.1tUS$292.5b25.9x45.8x6.5x
Mon, 20 Nov 2023US$12.6tUS$2.0tUS$281.9b24.5x44.8x6.2x
Wed, 18 Oct 2023US$11.8tUS$2.0tUS$270.2b24.8x43.6x5.8x
Fri, 15 Sep 2023US$11.9tUS$2.0tUS$272.6b24.3x43.8x5.8x
Sun, 13 Aug 2023US$11.6tUS$2.0tUS$263.3b25.2x43.9x5.7x
Tue, 11 Jul 2023US$11.9tUS$2.0tUS$258.1b24.9x46.1x5.9x
Thu, 08 Jun 2023US$11.5tUS$2.0tUS$264.2b24.4x43.4x5.6x
Price to Earnings Ratio

43.4x


Total Market Cap: US$11.5tTotal Earnings: US$264.2bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45.4x202420252026
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 37.6x which is lower than its 3-year average PE of 45.4x.
  • The industry is trading close to its 3-year average PS ratio of 7.5x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 32% 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 Market1.58%
Tech4.73%
IT13.37%
Software8.62%
Semiconductors3.74%
Tech Hardware2.52%
Electronic Equipment and Components1.82%
Communications-0.15%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 33.6x.
    • Analysts are expecting annual earnings growth of 26.7%, which is higher than its past year's earnings growth of 10.6% per year.
  • Investors are most pessimistic about the Semiconductors industry, which is trading below its 3-year average of 54.2x.
Forecasted Growth
  • Analysts are most optimistic on the Electronic Equipment and Components industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 11% 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
MU Micron TechnologyUS$971.0029.3%
+US$248.1b		927.9%PE45.4x
MSFT MicrosoftUS$450.247.6%
+US$235.3b		-2.5%PE26.7x
AVGO BroadcomUS$446.777.9%
+US$154.5b		79.6%PE84.7x
ORCL OracleUS$225.7817.5%
+US$96.9b		35.5%PE40.1x
DELL Dell TechnologiesUS$420.9142.6%
+US$81.7b		289.4%PE32.5x

Latest News

AAPL
US$312.06
Apple
7D
1.0%
1Y
54.7%
Seeking Alpha • 20h

Apple: We Don't Need No Engineering, We Don't Need No Fold-A-Phone

Summary Apple Inc. remains a Strong Sell due to excessive valuation risk tied to iPhone dependency and slowing device sales growth. AAPL's revenue growth has relied heavily on Pro and Pro Max lines, with Services growth insufficient to offset device sales stagnation. The upcoming CEO transition and iPhone 18 launch present heightened risk, as market expectations for innovation and sales are extremely high. Valuation disconnect is pronounced, with a 3.2x PEG ratio and price far outpacing fundamental earnings and revenue growth. Read the full article on Seeking Alpha
INTC
US$114.68
Intel
7D
-4.3%
1Y
486.6%
Seeking Alpha • 20h

Intel: The AI Trade Is Shifting To CPUs Now

Summary I was cautious about Intel before, but Q1 forced me to take the turnaround more seriously. I still own a small position, but I'm not adding yet. What changed is that CPUs no longer look like yesterday’s business. Server demand, pricing, and Google’s ASIC deal made me rethink Intel’s place in AI infrastructure. Intel's ASIC business was a genuine surprise. CFO Zinsner confirmed on the Q1 call that it already exceeds $1 billion in annual revenue and nearly doubled YoY. At 110x forward P/E against AMD's 70x and Nvidia's 24x, I think the stock prices in a second-half supply and margin recovery that has yet to materialize. Read the full article on Seeking Alpha
NVDA
US$211.14
NVIDIA
7D
-1.9%
1Y
56.2%
TXN
US$305.68
Texas Instruments
7D
-1.1%
1Y
67.2%
LITE
US$854.96
Lumentum Holdings
7D
-9.7%
1Y
1,082.8%
MU
US$971.00
Micron Technology
7D
29.3%
1Y
927.9%
SNPS
US$475.62
Synopsys
7D
-9.4%
1Y
2.5%
ORCL
US$225.78
Oracle
7D
17.5%
1Y
35.5%
DELL
US$420.91
Dell Technologies
7D
42.6%
1Y
289.4%
Narrative Update • May 29

DELL: AI Server Euphoria Will Eventually Collide With Normalizing Memory Cycle

Analysts have lifted the fair value estimate for Dell Technologies stock from $115.93 to $138.00, tying the shift to higher assumed revenue growth and profit margins, a slightly lower discount rate, and updated P/E assumptions that reflect Street research highlighting AI driven demand for servers, storage, and related infrastructure. Analyst Commentary Recent Street research on Dell Technologies clusters around a common theme: AI related demand for servers and storage is front and center, but views on how sustainable that demand is and what it means for valuation are mixed.
CBRS
US$236.99
Cerebras Systems
7D
-7.7%
1Y
n/a
AVGO
US$446.77
Broadcom
7D
7.9%
1Y
79.6%
ARM
US$353.29
Arm Holdings
7D
15.3%
1Y
180.3%
ZS
US$139.73
Zscaler
7D
-23.4%
1Y
-49.3%
GLW
US$181.16
Corning
7D
-6.6%
1Y
262.0%
Seeking Alpha • May 27

Beyond AI: Corning's Three Forgotten Powerhouses

Summary Corning is rated Buy with 10-15% upside, driven by AI-driven optical demand, solar foothold positioning, and innovative Life Sciences growth. GLW’s solar segment is set to benefit from U.S. tariff walls, domestic capacity buildout, and strong customer commitments covering 80% of available capacity for five years. Velocity Vials in Life Sciences could generate $1.5–3B annual revenue if they capture 20% global share, leveraging partnerships and licensing for scalable growth. Corning’s moat is strongest in inter-datacenter fiber, supported by long-term contracts, high CapEx funded by customer commitments, and robust balance sheet health. Read the full article on Seeking Alpha
MSFT
US$450.24
Microsoft
7D
7.6%
1Y
-2.5%
Seeking Alpha • May 26

Microsoft: The $190B AI Infrastructure Trap Implies 20% Downside

Summary Microsoft faces significant risks from rising CapEx, AI competition, and margin compression, making current share prices unattractive for new investment. A thorough analysis of these risks, including their likelihood and impact, helps determine the true value of MSFT. Record CapEx—projected at $190 billion by 2026—risks an 'infrastructure trap,' with rapid asset obsolescence, declining ROIC, and potential overbuilding reminiscent of the Cisco scenario. I maintain a 'Sell' rating on MSFT, targeting a 20% correction to the $300–$350 range before considering long-term positions. Read the full article on Seeking Alpha
AMD
US$516.10
Advanced Micro Devices
7D
10.4%
1Y
350.2%