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

U.S. Tech Sector Analysis

UpdatedAug 01, 2026
DataAggregated Company Financials
Companies987
  • 7D-0.08%
  • 3M6.3%
  • 1Y28.9%
  • YTD15.7%

Over the last 7 days, the Tech industry has remained flat, although notably Microsoft gained 22%. As for the the longer term, the industry is up 29% over the past 12 months. As for the next few years, earnings are expected to grow by 22% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 01 Aug 2026US$26.2tUS$2.9tUS$638.1b33.8x41.1x8.9x
Mon, 29 Jun 2026US$26.2tUS$2.9tUS$645.0b33.2x40.6x9.1x
Wed, 27 May 2026US$21.7tUS$2.8tUS$610.9b36.1x35.5x7.7x
Fri, 24 Apr 2026US$24.1tUS$2.7tUS$552.1b32x43.7x8.9x
Sun, 22 Mar 2026US$20.6tUS$2.7tUS$555.5b29.5x37.1x7.6x
Tue, 17 Feb 2026US$21.4tUS$2.6tUS$520.2b29.8x41.1x8.1x
Thu, 15 Jan 2026US$22.5tUS$2.6tUS$500.6b32x45x8.8x
Sat, 13 Dec 2025US$23.1tUS$2.6tUS$503.6b31.1x45.8x8.9x
Mon, 10 Nov 2025US$22.8tUS$2.5tUS$478.4b30.2x47.6x9x
Wed, 08 Oct 2025US$22.9tUS$2.5tUS$439.1b31.2x52.1x9.2x
Fri, 05 Sep 2025US$20.8tUS$2.5tUS$429.6b28.3x48.3x8.5x
Sun, 03 Aug 2025US$20.3tUS$2.4tUS$413.0b27.6x49.1x8.4x
Tue, 01 Jul 2025US$19.6tUS$2.4tUS$393.2b28.8x49.8x8.2x
Thu, 29 May 2025US$18.0tUS$2.4tUS$386.0b27.4x46.6x7.6x
Sat, 26 Apr 2025US$15.8tUS$2.3tUS$386.0b26x41x6.8x
Mon, 24 Mar 2025US$16.6tUS$2.3tUS$386.9b27.2x42.9x7.1x
Wed, 19 Feb 2025US$18.9tUS$2.3tUS$369.6b32.1x51x8.2x
Fri, 17 Jan 2025US$18.3tUS$2.3tUS$367.0b33.3x49.8x8.1x
Sun, 15 Dec 2024US$18.8tUS$2.3tUS$363.6b32.5x51.6x8.3x
Tue, 12 Nov 2024US$18.3tUS$2.2tUS$349.2b33.7x52.3x8.2x
Thu, 10 Oct 2024US$17.4tUS$2.2tUS$378.2b30.3x46x8x
Sat, 07 Sep 2024US$15.6tUS$2.2tUS$374.5b27.2x41.7x7.2x
Mon, 05 Aug 2024US$15.6tUS$2.1tUS$363.3b29.6x42.9x7.3x
Wed, 03 Jul 2024US$17.1tUS$2.1tUS$362.9b30.7x47x8.1x
Fri, 31 May 2024US$15.1tUS$2.1tUS$351.1b29.8x43.1x7.3x
Sun, 28 Apr 2024US$14.2tUS$2.1tUS$335.6b28.4x42.3x6.9x
Tue, 26 Mar 2024US$14.9tUS$2.0tUS$328.6b27.7x45.5x7.3x
Thu, 22 Feb 2024US$14.0tUS$2.0tUS$311.6b27.1x44.9x6.9x
Sat, 20 Jan 2024US$13.9tUS$2.0tUS$292.0b26.4x47.4x6.8x
Mon, 18 Dec 2023US$13.4tUS$2.1tUS$293.6b26.5x45.5x6.5x
Wed, 15 Nov 2023US$12.3tUS$2.0tUS$280.4b24.2x43.9x6x
Fri, 13 Oct 2023US$12.0tUS$2.0tUS$270.1b24.7x44.2x5.9x
Sun, 10 Sep 2023US$12.0tUS$2.0tUS$272.9b24.3x43.8x5.9x
Tue, 08 Aug 2023US$11.9tUS$2.0tUS$262.2b25.3x45.5x5.9x
Price to Earnings Ratio

45.5x


Total Market Cap: US$11.9tTotal Earnings: US$262.2bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 45x202420252026
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 41.1x which is lower than its 3-year average PE of 45.0x.
  • The 3-year average PS ratio of 7.7x is lower than the industry's current PS ratio of 8.9x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 35% 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 Market0.77%
Tech-0.085%
Software14.23%
IT5.84%
Communications1.49%
Electronic Equipment and Components-0.033%
Semiconductors-3.86%
Tech Hardware-6.70%
Industry PE
  • Investors are most optimistic about the IT industry even though it's trading below its 3-year average PE ratio of 54.1x.
    • Analysts are expecting annual earnings growth of 25.0%, which is higher than its past year's earnings decline of 0.02% per year.
  • Investors are most pessimistic about the Tech Hardware industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 33.9x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 28% 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 11% 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$464.7221.8%
+US$615.4b		-11.3%PE25.8x
ORCL OracleUS$129.8712.9%
+US$42.9b		-46.9%PE22x
AVGO BroadcomUS$389.281.9%
+US$35.0b		34.9%PE63.2x
CRM SalesforceUS$184.0212.4%
+US$16.7b		-26.6%PE18.8x
NOW ServiceNowUS$111.2312.6%
+US$12.9b		-39.2%PE68.9x

Latest News

MSFT
US$464.72
Microsoft
7D
21.8%
1Y
-11.3%
Analysis Article • 9h

Earnings Update: Microsoft Corporation (NASDAQ:MSFT) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

Shareholders will be ecstatic, with their stake up 22% over the past week following Microsoft Corporation 's...
AAPL
US$308.91
Apple
7D
-7.2%
1Y
52.6%
ACN
US$165.92
Accenture
7D
12.9%
1Y
-35.0%
Seeking Alpha • Jul 31

Accenture: The Market Is Pricing In Too Much Permanent Damage

Summary Accenture trades at 12x FY26 earnings after a 40% decline, offering a 4% yield and cautious Buy rating. Organic growth is weak, bookings have declined, and Capgemini's superior performance highlights ACN's execution issues rather than just industry headwinds. AI is both a threat and opportunity; ACN's AI initiatives and Edge unit show promise, but scale and margin impact remain unproven. The $9B acquisition program introduces integration risk, but robust free cash flow and shareholder returns provide downside protection at current valuation. Read the full article on Seeking Alpha
AMAT
US$507.67
Applied Materials
7D
-5.3%
1Y
182.1%
Seeking Alpha • Jul 31

Applied Materials: Why I'm Maintaining A 'Strong Buy' After A 45% Run

Summary Applied Materials remains a "Strong Buy" after a 45% rally, driven by robust Q2 results and sector momentum. Q2 revenue reaccelerated to $7.91 billion (+11% YoY), with a record 31.9% operating margin, and raised the 2026 semiconductor equipment growth outlook to 30%+. Management's improved revenue visibility, strategic NEXX acquisition, and deepening EPIC Center partnerships strengthen AMAT’s competitive moat and growth prospects. I raise my fair GAAP PE multiple to 45x–55x, with AMAT trading at the lower end (47x), supporting further upside despite geopolitical risks. Read the full article on Seeking Alpha
ORCL
US$129.87
Oracle
7D
12.9%
1Y
-46.9%
CRM
US$184.02
Salesforce
7D
12.4%
1Y
-26.6%
Seeking Alpha • Jul 31

Salesforce: AI Adoption Is Surging, But Revenue Still Isn't Following - Here's Why

Summary Salesforce is re-rated as BUY, citing undervaluation and strong adoption metrics despite revenue growth deceleration. CRM's Q1'27 organic revenue growth was 8.7%, with AI solution adoption outpacing actual revenue acceleration due to unclear pricing models. Performance metrics—ARR, token growth, and customer expansion—highlight robust AI adoption, but revenue lag persists amid complex pricing structures. CRM trades at a P/E of 13.6x versus the sector's 24x, offering attractive risk-reward despite competitive pressures from MSFT, ORCL, and NOW. Read the full article on Seeking Alpha
NVDA
US$200.75
NVIDIA
7D
-2.9%
1Y
15.6%
Narrative Update • Jul 31

NVDA: AI Infrastructure Commitments And Capital Returns Will Extend Data Center Supercycle

Analysts lifted their Nvidia price target to $330 from $310, citing continued strength in AI data center demand, tighter supply across key components, and reinforced confidence in the company’s role at the center of surging hyperscaler and enterprise AI infrastructure spending. Analyst Commentary Recent research around Nvidia shows a wide range of views on how much AI infrastructure spending, product execution, and competitive moves are already reflected in the stock.
MU
US$823.03
Micron Technology
7D
-10.6%
1Y
684.7%
SNDK
US$1,214.83
Sandisk
7D
-15.4%
1Y
2,839.3%
KLAC
US$182.82
KLA
7D
-13.2%
1Y
106.2%
Narrative Update • Jul 30

KLAC: AI Infrastructure Spending And Process Control Demand Will Support Re Rating

Analysts have adjusted the KLA price target to $303.48. This reflects a blend of higher assumed long term profit margins, a slightly higher discount rate, and a richer future P/E multiple supported by research commentary that highlights stronger process control demand, ongoing WFE and AI infrastructure spending, and mixed but generally constructive earnings revisions across the Street.
ARM
US$239.69
Arm Holdings
7D
-7.8%
1Y
74.2%
AMD
US$476.15
Advanced Micro Devices
7D
-8.8%
1Y
177.3%
AVGO
US$389.28
Broadcom
7D
1.9%
1Y
34.9%
Narrative Update • Jul 30

AVGO: AI Custom Silicon Contracts And Anthropic Financing Will Support FY27 Earnings Power

Broadcom's analyst fair value estimate has been adjusted to $675 from $650 as analysts factor in updated AI related chip demand expectations, reinforced long term custom silicon commitments with customers like Apple, and continued focus on margins despite mixed views on valuation and hyperscaler supplier diversification. Analyst Commentary Recent Street research on Broadcom highlights a mix of enthusiasm for the companys AI driven opportunities and caution around valuation and customer concentration.
APH
US$160.70
Amphenol
7D
5.3%
1Y
54.1%
NOW
US$111.23
ServiceNow
7D
12.6%
1Y
-39.2%
ADBE
US$250.41
Adobe
7D
11.2%
1Y
-28.0%
Narrative Update • Jul 29

ADBE: Freemium AI Pivot And Leadership Turnover Will Pressure Future ARR

Adobe's updated analyst fair value estimate has moved down from $220 to $190 as analysts weigh lower Street price targets and execution risks tied to freemium, AI monetization, and leadership transitions against still solid revenue growth and margins in their models. Analyst Commentary Recent research on Adobe highlights a clear split in opinion.