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U.S. Tech Sector Analysis

UpdatedAug 27, 2026
DataAggregated Company Financials
Companies986
  • 7D-0.8%
  • 3M-2.9%
  • 1Y28.7%
  • YTD20.6%

Over the last 7 days, the Tech industry has dropped 1.9%, driven by a pullback from NVIDIA of 3.6%. In the past year, the industry has gained 29%. Earnings are forecast to grow by 22% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 27 Aug 2026US$21.9tUS$3.0tUS$638.7b34.2x34.2x7.3x
Sat, 25 Jul 2026US$21.3tUS$2.9tUS$646.7b33x32.9x7.4x
Mon, 22 Jun 2026US$22.7tUS$2.8tUS$618.6b35.1x36.7x8x
Wed, 20 May 2026US$20.8tUS$2.8tUS$570.8b33.5x36.4x7.5x
Fri, 17 Apr 2026US$23.1tUS$2.7tUS$550.8b32.4x41.9x8.6x
Sun, 15 Mar 2026US$21.0tUS$2.7tUS$542.8b30x38.7x7.8x
Tue, 10 Feb 2026US$22.0tUS$2.6tUS$517.1b30.8x42.5x8.4x
Thu, 08 Jan 2026US$22.7tUS$2.6tUS$506.8b32.1x44.8x8.8x
Sat, 06 Dec 2025US$22.9tUS$2.6tUS$496.4b31.2x46.1x8.9x
Mon, 03 Nov 2025US$23.9tUS$2.5tUS$481.9b30.2x49.6x9.4x
Wed, 01 Oct 2025US$22.4tUS$2.5tUS$437.8b31.5x51.2x9.1x
Fri, 29 Aug 2025US$21.0tUS$2.4tUS$428.8b29.3x48.9x8.6x
Sun, 27 Jul 2025US$20.6tUS$2.4tUS$392.9b28.3x52.5x8.6x
Tue, 24 Jun 2025US$18.9tUS$2.4tUS$391.7b27.7x48.3x7.9x
Thu, 22 May 2025US$18.0tUS$2.4tUS$385.5b26.5x46.6x7.6x
Sat, 19 Apr 2025US$14.9tUS$2.3tUS$386.6b24.6x38.5x6.4x
Mon, 17 Mar 2025US$16.5tUS$2.3tUS$386.2b26.5x42.9x7.1x
Wed, 12 Feb 2025US$18.4tUS$2.3tUS$371.5b33.1x49.6x8x
Fri, 10 Jan 2025US$18.4tUS$2.3tUS$366.9b33.1x50.2x8.2x
Sun, 08 Dec 2024US$18.8tUS$2.3tUS$362.4b33.4x52x8.4x
Tue, 05 Nov 2024US$17.2tUS$2.2tUS$353.4b29.6x48.8x7.7x
Thu, 03 Oct 2024US$17.3tUS$2.2tUS$378.1b29.4x45.6x8x
Sat, 31 Aug 2024US$16.6tUS$2.2tUS$378.5b29.5x44x7.7x
Mon, 29 Jul 2024US$16.3tUS$2.1tUS$361.7b31.6x45.2x7.7x
Wed, 26 Jun 2024US$16.5tUS$2.1tUS$360.6b29.9x45.9x7.8x
Fri, 24 May 2024US$15.2tUS$2.1tUS$349.5b29.6x43.4x7.4x
Sun, 21 Apr 2024US$13.5tUS$2.0tUS$328.5b27.8x41x6.6x
Tue, 19 Mar 2024US$14.6tUS$2.0tUS$325.1b27.5x44.8x7.1x
Thu, 15 Feb 2024US$14.2tUS$2.0tUS$310.0b27.2x45.8x7x
Sat, 13 Jan 2024US$13.4tUS$2.0tUS$292.0b26x46x6.5x
Mon, 11 Dec 2023US$12.9tUS$2.1tUS$293.2b25x44x6.3x
Wed, 08 Nov 2023US$11.9tUS$2.0tUS$279.6b23.2x42.6x5.9x
Fri, 06 Oct 2023US$11.5tUS$2.0tUS$269.9b24.4x42.7x5.7x
Sun, 03 Sep 2023US$12.3tUS$2.0tUS$272.5b24.7x45x6x
Price to Earnings Ratio

45x


Total Market Cap: US$12.3tTotal Earnings: US$272.5bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.8x202420252026
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 34.0x which is lower than its 3-year average PE of 44.8x.
  • 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 33% per year over the last three years.
  • Revenues for these companies have grown 13% 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-0.42%
Tech-0.84%
Communications3.75%
Software1.62%
Electronic Equipment and Components0.68%
Tech Hardware-0.95%
IT-1.43%
Semiconductors-2.54%
Industry PE
  • Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 36.5x.
    • Analysts are expecting annual earnings growth of 24.0%, 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 53.4x.
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 9.6% 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
MSFT MicrosoftUS$496.172.4%
+US$88.0b		-2.1%PE27.5x
AMD Advanced Micro DevicesUS$481.103.1%
+US$24.0b		187.9%PE121.4x
ANET Arista NetworksUS$202.258.5%
+US$19.9b		51.8%PE63.1x
DELL Dell TechnologiesUS$463.826.0%
+US$17.0b		250.1%PE35.6x
ORCL OracleUS$148.873.5%
+US$14.6b		-36.9%PE25.2x

Latest News

MSFT
US$496.17
Microsoft
7D
2.4%
1Y
-2.1%
ANET
US$202.25
Arista Networks
7D
8.5%
1Y
51.8%
LITE
US$939.03
Lumentum Holdings
7D
13.5%
1Y
646.2%
AMAT
US$479.76
Applied Materials
7D
-3.3%
1Y
191.8%
AVGO
US$355.88
Broadcom
7D
-1.8%
1Y
18.5%
Seeking Alpha • 11h

Broadcom Is The New Nvidia, And That's The Problem

Summary Broadcom Inc. shares are roughly flat year-to-date, and we don't expect things to turn for the better anytime soon. AVGO stock is caught in a similar situation to Nvidia, holding 70% of the ASIC market and now needing to fend off the growing competition or lose share. This means cutting price to remain competitive or losing market share as hyperscalers increasingly multi-source custom AI ASICs, which Google has already exemplified well. AVGO shares are down 15% since our sell call, and we don't think it's time to step back, as "all roads leading to ASIC" is no longer synonymous with just Broadcom. Read the full article on Seeking Alpha
ORCL
US$148.87
Oracle
7D
3.5%
1Y
-36.9%
Seeking Alpha • 13h

Oracle: Why I Am Staying Strong After Q4 2026

Summary I reiterate a Strong Buy on Oracle Corporation with a $185 price target, driven by robust Q4 2026 results and accelerating AI infrastructure momentum. The $638 billion RPO looks more credible than it did eight months ago. The majority of incremental Q4 RPO also came through customer prepayments or bring-your-own-hardware structures. 2027 could mark a major growth inflection. Forward revenue growth of 31.54% is about 151% above the sector median, which tells me ORCL's growth profile is moving well beyond it. The valuation gives me room to stay aggressive. Using a 23x multiple on 2027 non-GAAP EPS guidance of $8.05 gives me a $185 price target. The AI infrastructure thesis is getting stronger. ORCL is adding close to another 1 GW of data center capacity in Q1 2027, which should support another step-up in OCI revenue. Read the full article on Seeking Alpha
MSTR
US$123.19
Strategy
7D
18.2%
1Y
-64.0%
Seeking Alpha • 13h

Strategy: When Saylor Sells, We Buy

Summary MicroStrategy sold 1,638 BTC near cycle lows, yet Bitcoin and MSTR have rallied strongly since. MSTR now trades at its lowest mNAV ever, offering leveraged upside if the Bitcoin bottom holds. Forced selling by Strategy did not trigger a death spiral, alleviating a key overhang and demonstrating market resilience. MSTR’s structure provides unmatched, cheap leverage to Bitcoin, but dilution and flat/declining BTC remain risks. Read the full article on Seeking Alpha
AAPL
US$313.45
Apple
7D
-1.1%
1Y
36.0%
AMD
US$481.10
Advanced Micro Devices
7D
3.1%
1Y
187.9%
NVDA
US$209.66
NVIDIA
7D
-3.6%
1Y
15.5%
INTC
US$88.24
Intel
7D
-4.9%
1Y
255.1%
CRWD
US$189.18
CrowdStrike Holdings
7D
-6.2%
1Y
79.1%
Seeking Alpha • Aug 24

CrowdStrike: Excellent Product, Unjustifiable Valuation

Summary CrowdStrike is fundamentally overvalued, trading at a $195B market cap and forward P/E of 155, despite strong revenue growth. CRWD's business model requires perpetual high spending on R&D and marketing, limiting future net margin expansion and undermining bullish operating leverage assumptions. Generative AI accelerates competition, lowering barriers for both startups and tech giants, threatening CRWD’s pricing power and market share. I rate CRWD a Strong Sell, as current valuations price in flawless execution and ignore structural profitability constraints and intensifying competitive risks. Read the full article on Seeking Alpha
SNDK
US$1,499.37
Sandisk
7D
-4.4%
1Y
2,995.3%
Seeking Alpha • Aug 24

Why Sandisk? Cyclicality Is Not The Only Open Question

Summary Two-thirds of Sandisk's impressive sequential revenue growth came from Pricing, only one-third from volume. One key question is, therefore, sustainability beyond the current rush driven by AI datacenter buildout. More notably, however, SNDK's growth projections closely track the overall flash storage market, with no expected market share gains. Given industry-wide drivers, rather than idiosyncratic ones, a Memory or Storage ETF might be preferable to single-stock exposure. Read the full article on Seeking Alpha
PANW
US$339.31
Palo Alto Networks
7D
-5.7%
1Y
80.9%
Seeking Alpha • Aug 21

Palo Alto Networks: Upcoming Earnings Beat, Valuation Is Crazy

Summary Palo Alto Networks, Inc. is expected to report robust Q4 revenue growth, likely exceeding consensus estimates, driven by strong bookings and Next-Generation Security momentum. Recurring revenue from Next-Generation Security grew 60% last quarter, while remaining performance obligations rose 36%, supporting sustained top-line expansion. Despite consistent earnings beats, EPS growth is constrained by a 15% share count increase, resulting in projected EPS growth of only 5–10%. At ~95x earnings and a PEG ratio near 5, PANW's valuation appears stretched relative to its near-term EPS growth, prompting a neutral stance. Read the full article on Seeking Alpha
DELL
US$463.82
Dell Technologies
7D
6.0%
1Y
250.1%
Narrative Update • Aug 21

DELL: AI Server Cycle Will Eventually Confront Tight Supply Ceiling

Analysts have trimmed the fair value estimate for Dell Technologies slightly to $372.39, even as many raise formal price targets into the $430 to $700 range, based on expectations that AI driven server demand and an underappreciated storage portfolio can support stronger revenue and earnings over time. Analyst Commentary Recent commentary on Dell Technologies shows a wide spread in expectations, with many firms lifting long term price targets as they factor in AI servers, storage and higher forward guidance.
LRCX
US$312.88
Lam Research
7D
1.9%
1Y
201.8%
Narrative Update • Aug 21

LRCX: AI Wafer Equipment Upswing Will Support Extended Multi Year Earnings Runway

Analysts have trimmed their price targets on Lam Research, with the modelled fair value moving from about $500 to about $474, as they recalibrate discount rates and valuation multiples while still highlighting stronger projected revenue growth, higher profit margins and solid wafer fab equipment demand across AI driven logic and memory spending. Analyst Commentary Analyst commentary on Lam Research remains largely constructive, even as several firms recalibrate price targets and valuation assumptions.