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U.S. Tech Sector Analysis

UpdatedOct 16, 2025
DataAggregated Company Financials
Companies952
  • 7D-2.2%
  • 3M9.6%
  • 1Y27.1%
  • YTD22.8%

Over the last 7 days, the Tech industry has dropped 2.2%, driven by NVIDIA declining 5.6%. On the other hand Oracle is actually up 5.4%. This takes the industry's 12 month performance to a gain of 27%. Looking forward, earnings are forecast to grow by 19% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 17 Oct 2025US$22.4tUS$2.5tUS$439.1b32.5x51.1x9x
Sun, 14 Sep 2025US$21.6tUS$2.5tUS$435.4b29.9x49.7x8.8x
Tue, 12 Aug 2025US$21.1tUS$2.4tUS$420.0b28.2x50.4x8.7x
Thu, 10 Jul 2025US$20.0tUS$2.4tUS$393.1b29.6x50.8x8.4x
Sat, 07 Jun 2025US$18.4tUS$2.4tUS$391.8b27.9x46.9x7.7x
Mon, 05 May 2025US$16.7tUS$2.3tUS$386.4b26.4x43.2x7.1x
Wed, 02 Apr 2025US$15.9tUS$2.3tUS$386.8b26.8x41.1x6.8x
Fri, 28 Feb 2025US$18.0tUS$2.3tUS$378.7b29.5x47.5x7.7x
Sun, 26 Jan 2025US$18.7tUS$2.3tUS$365.6b33.9x51.3x8.3x
Tue, 24 Dec 2024US$18.6tUS$2.3tUS$366.9b32.1x50.6x8.2x
Thu, 21 Nov 2024US$18.0tUS$2.2tUS$350.9b32.9x51.3x8.1x
Sat, 19 Oct 2024US$17.7tUS$2.2tUS$378.1b30.3x46.8x8.2x
Mon, 16 Sep 2024US$16.8tUS$2.2tUS$375.4b28.3x44.7x7.8x
Wed, 14 Aug 2024US$15.8tUS$2.1tUS$369.8b27.5x42.8x7.4x
Fri, 12 Jul 2024US$17.9tUS$2.1tUS$363.2b30.6x49.2x8.4x
Sun, 09 Jun 2024US$15.6tUS$2.1tUS$351.2b29.6x44.5x7.6x
Tue, 07 May 2024US$14.6tUS$2.0tUS$336.2b28.5x43.3x7.1x
Thu, 04 Apr 2024US$14.6tUS$2.0tUS$328.6b28.3x44.6x7.2x
Sat, 02 Mar 2024US$14.6tUS$2.0tUS$327.3b28.2x44.6x7.1x
Mon, 29 Jan 2024US$14.1tUS$2.0tUS$295.9b27x47.5x6.9x
Wed, 27 Dec 2023US$13.4tUS$2.1tUS$292.5b26.5x45.8x6.5x
Fri, 24 Nov 2023US$12.7tUS$2.0tUS$290.1b24.9x43.7x6.2x
Sun, 22 Oct 2023US$11.4tUS$2.0tUS$269.7b23.5x42.2x5.6x
Tue, 19 Sep 2023US$11.8tUS$2.0tUS$272.9b23.9x43.3x5.8x
Thu, 17 Aug 2023US$11.5tUS$2.0tUS$263.4b24.5x43.8x5.7x
Sat, 15 Jul 2023US$12.2tUS$2.0tUS$257.8b25.2x47.5x6x
Mon, 12 Jun 2023US$11.5tUS$2.0tUS$264.2b24.4x43.4x5.6x
Wed, 10 May 2023US$10.3tUS$2.0tUS$261.4b22.1x39.4x5.1x
Fri, 07 Apr 2023US$10.2tUS$2.0tUS$274.9b22.6x37.2x5x
Sun, 05 Mar 2023US$11.0tUS$2.3tUS$298.5b23.3x37x4.9x
Tue, 31 Jan 2023US$10.5tUS$2.2tUS$321.9b23.9x32.7x4.7x
Thu, 29 Dec 2022US$9.5tUS$2.2tUS$327.4b21.2x29x4.2x
Sat, 26 Nov 2022US$10.4tUS$2.2tUS$332.6b22x31.3x4.6x
Mon, 24 Oct 2022US$9.8tUS$2.2tUS$341.2b19.4x28.8x4.5x
Price to Earnings Ratio

28.8x


Total Market Cap: US$9.8tTotal Earnings: US$341.2bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 43.7x202320242025
Current Industry PE
  • Investors are optimistic on the American Information Technology industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 51.1x which is higher than its 3-year average PE of 43.7x.
  • The 3-year average PS ratio of 6.8x is lower than the industry's current PS ratio of 9.0x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 8.8% per year over the last three years.
  • Revenues for these companies have grown 4.4% 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-1.49%
Tech-2.21%
Electronic Equipment and Components0.47%
Software-1.87%
Semiconductors-2.16%
Tech Hardware-2.67%
Communications-3.11%
IT-4.38%
Industry PE
  • Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 49.4x.
    • Analysts are expecting annual earnings growth of 24.4%, which is higher than its past year's earnings decline of 0.7% 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 31.1x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is better than its past earnings decline of 0.7% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 8.1% 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
ORCL OracleUS$313.005.4%
+US$45.7b		78.2%PE71.7x
AVGO BroadcomUS$354.152.6%
+US$43.1b		95.1%PE88.9x
LRCX Lam ResearchUS$142.378.4%
+US$13.9b		95.5%PE33.5x
APP AppLovinUS$605.686.3%
+US$12.1b		317.1%PE81.5x
MU Micron TechnologyUS$202.535.3%
+US$11.4b		80.7%PE26.6x

Latest News

AVGO
US$354.15
Broadcom
7D
2.6%
1Y
95.1%
MU
US$202.53
Micron Technology
7D
5.3%
1Y
80.7%
MSFT
US$511.61
Microsoft
7D
-2.1%
1Y
22.8%
ORCL
US$313.00
Oracle
7D
5.4%
1Y
78.2%
ANET
US$146.01
Arista Networks
7D
-7.7%
1Y
43.4%

Adoption Of AI And Open Ethernet Will Expand Future Markets

The analyst price target for Arista Networks has increased from approximately $156 to $160, as analysts cite ongoing strong demand, resilient long-term growth projections, and positive sentiment following recent updates in margin and revenue outlooks. Analyst Commentary Recent analyst updates have highlighted both optimism and caution regarding Arista Networks’ long-term prospects and valuation following new guidance and price target changes.
LRCX
US$142.37
Lam Research
7D
8.4%
1Y
95.5%
AAPL
US$247.45
Apple
7D
-2.6%
1Y
6.6%
NVDA
US$181.81
NVIDIA
7D
-5.6%
1Y
32.8%
IBM
US$275.97
International Business Machines
7D
-4.3%
1Y
18.5%
AMAT
US$227.72
Applied Materials
7D
3.4%
1Y
24.3%
PLTR
US$178.12
Palantir Technologies
7D
-4.0%
1Y
324.1%
MSTR
US$283.84
Strategy
7D
-11.4%
1Y
46.7%
APP
US$605.68
AppLovin
7D
6.3%
1Y
317.1%
KLAC
US$1,098.80
KLA
7D
4.3%
1Y
63.9%
ACN
US$234.02
Accenture
7D
-7.1%
1Y
-37.6%

Gen AI And Industry X Investments Will Drive Digital Transformation

Accenture's analyst price target has been revised downward from approximately $305 to $278 per share. This change reflects recent reductions in projected revenue growth rates and industry-wide valuation multiples, as analysts cite persistent margin pressures and a mixed demand outlook despite ongoing investments in generative AI.
UI
US$754.00
Ubiquiti
7D
8.2%
1Y
201.8%

Ubiquiti Inc. (NYSE:UI) Stock Rockets 29% As Investors Are Less Pessimistic Than Expected

Sep 05
Ubiquiti Inc. (NYSE:UI) Stock Rockets 29% As Investors Are Less Pessimistic Than Expected