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U.S. Tech Sector Analysis

UpdatedDec 25, 2025
DataAggregated Company Financials
Companies985
  • 7D5.1%
  • 3M2.9%
  • 1Y19.9%
  • YTD24.3%

Over the last 7 days, the Tech industry has risen 5.1%, driven by gains from NVIDIA of 10%. This takes the industry's 12 month performance to a gain of 20%. As for the next few years, earnings are expected to grow by 20% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 25 Dec 2025US$22.8tUS$2.6tUS$506.9b31.1x45.1x8.8x
Sat, 22 Nov 2025US$21.5tUS$2.6tUS$492.5b28.6x43.6x8.4x
Mon, 20 Oct 2025US$22.6tUS$2.5tUS$439.1b31.2x51.6x9.1x
Wed, 17 Sep 2025US$21.9tUS$2.5tUS$435.6b29.5x50.2x8.9x
Fri, 15 Aug 2025US$21.3tUS$2.4tUS$421.1b28.6x50.6x8.8x
Sun, 13 Jul 2025US$20.0tUS$2.4tUS$393.2b29.5x50.9x8.4x
Tue, 10 Jun 2025US$18.5tUS$2.4tUS$391.8b27.7x47.3x7.8x
Thu, 08 May 2025US$16.5tUS$2.3tUS$386.4b26.3x42.6x7x
Sat, 05 Apr 2025US$15.0tUS$2.3tUS$386.8b24.1x38.8x6.4x
Mon, 03 Mar 2025US$17.6tUS$2.3tUS$378.4b29.7x46.5x7.6x
Wed, 29 Jan 2025US$18.1tUS$2.3tUS$365.8b34.3x49.4x8x
Fri, 27 Dec 2024US$19.0tUS$2.3tUS$366.9b32.6x51.7x8.4x
Sun, 24 Nov 2024US$18.1tUS$2.3tUS$361.1b33x50.2x8.1x
Tue, 22 Oct 2024US$17.8tUS$2.2tUS$378.2b30.4x47x8.2x
Thu, 19 Sep 2024US$16.6tUS$2.2tUS$375.5b28.2x44.3x7.7x
Sat, 17 Aug 2024US$16.8tUS$2.1tUS$368.1b29x45.6x7.8x
Mon, 15 Jul 2024US$17.6tUS$2.1tUS$363.1b30.6x48.4x8.3x
Wed, 12 Jun 2024US$15.7tUS$2.1tUS$351.3b29.4x44.7x7.6x
Fri, 10 May 2024US$14.5tUS$2.0tUS$337.4b29.5x42.9x7.1x
Sun, 07 Apr 2024US$14.6tUS$2.0tUS$328.6b28.3x44.4x7.1x
Tue, 05 Mar 2024US$14.8tUS$2.0tUS$327.4b27.9x45.3x7.3x
Thu, 01 Feb 2024US$14.1tUS$2.1tUS$302.0b26.1x46.8x6.9x
Sat, 30 Dec 2023US$13.5tUS$2.1tUS$292.5b26.1x46.1x6.6x
Mon, 27 Nov 2023US$12.7tUS$2.0tUS$290.1b25x43.8x6.2x
Wed, 25 Oct 2023US$11.4tUS$2.0tUS$269.7b23.6x42.3x5.6x
Fri, 22 Sep 2023US$11.4tUS$2.0tUS$272.9b23.7x41.9x5.6x
Sun, 20 Aug 2023US$11.4tUS$2.0tUS$264.4b24.5x43.2x5.6x
Tue, 18 Jul 2023US$12.2tUS$2.0tUS$257.8b25.3x47.5x6x
Thu, 15 Jun 2023US$11.9tUS$2.0tUS$264.2b24.8x45x5.9x
Sat, 13 May 2023US$10.4tUS$2.0tUS$262.1b22.8x39.5x5.1x
Mon, 10 Apr 2023US$10.2tUS$2.0tUS$275.0b22.5x37.2x5x
Wed, 08 Mar 2023US$11.0tUS$2.3tUS$298.5b22.8x36.7x4.8x
Fri, 03 Feb 2023US$11.3tUS$2.2tUS$320.5b25.3x35.2x5x
Sun, 01 Jan 2023US$9.8tUS$2.2tUS$327.4b21.8x29.8x4.3x
Price to Earnings Ratio

29.8x


Total Market Cap: US$9.8tTotal Earnings: US$327.4bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.7x202320242025
Current Industry PE
  • Investors are relatively neutral on the American Information Technology industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 44.7x.
  • The 3-year average PS ratio of 7.0x is lower than the industry's current PS ratio of 8.8x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 16% per year over the last three years.
  • Revenues for these companies have grown 4.8% 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 Market3.10%
Tech5.09%
Semiconductors8.92%
Electronic Equipment and Components5.46%
Communications5.29%
Software3.56%
IT2.12%
Tech Hardware0.89%
Industry PE
  • Investors are most optimistic about the IT industry even though it's trading below its 3-year average PE ratio of 68.9x.
    • Analysts are expecting annual earnings growth of 19.6%, which is higher than its past year's earnings growth of 17.1% 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 32.1x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 4.7% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 8.9% 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
NVDA NVIDIAUS$188.6110.3%
+US$429.4b		34.5%PE46.2x
AVGO BroadcomUS$350.227.4%
+US$120.9b		46.1%PE71.8x
MSFT MicrosoftUS$488.022.5%
+US$88.4b		11.1%PE34.6x
MU Micron TechnologyUS$286.6827.1%
+US$69.5b		221.1%PE27.1x
ORCL OracleUS$197.4910.7%
+US$54.7b		15.2%PE36.8x

Latest News

NOW
US$152.59
ServiceNow
7D
-2.5%
1Y
-31.0%
ORCL
US$197.49
Oracle
7D
10.7%
1Y
15.2%
AVGO
US$350.22
Broadcom
7D
7.4%
1Y
46.1%
ACN
US$269.98
Accenture
7D
-1.4%
1Y
-25.3%
ADBE
US$352.98
Adobe
7D
-0.5%
1Y
-21.2%

ADBE: Rising AI Costs Will Pressure Margins And Drive Multiple Compression

Analysts have reduced their fair value estimate for Adobe from $380.00 to about $271.93 per share, citing expectations for slightly slower revenue growth, lower long term profit margins, and a more conservative valuation multiple. Analyst Commentary Bearish analysts have become more vocal on Adobe, pointing to a combination of moderating growth expectations and tighter competitive dynamics across creative, document, and marketing workflows.
INTC
US$36.16
Intel
7D
-0.3%
1Y
76.9%

INTC: Foundry And AI Execution Will Drive Confidence In Turnaround Narrative

Analysts have lifted their Intel fair value estimate to about $52 from roughly $27, reflecting improving execution, early but encouraging foundry progress, and a clearer AI strategy, even as they continue to flag rich valuation and execution risk. Analyst Commentary Recent Street research reflects a more constructive, but still guarded, view on Intel as bullish analysts acknowledge improving execution and a clearer AI and foundry strategy.
IOT
US$36.56
Samsara
7D
-4.4%
1Y
-19.7%

IOT: Future Returns Will Reflect Expanding Connected Operations Platform Adoption

Analysts have nudged their price target for Samsara higher to approximately $50.36 from about $49.72, citing slightly lower perceived risk and more favorable long term valuation assumptions, despite moderating growth and margin expectations. What's in the News Samsara issued fourth quarter and full fiscal year 2026 guidance, targeting revenue of $421 million to $423 million for Q4 (22 percent year over year growth) and $1.595 billion to $1.597 billion for the year (28 percent year over year growth) (company guidance).
MU
US$286.68
Micron Technology
7D
27.1%
1Y
221.1%
LRCX
US$177.33
Lam Research
7D
14.4%
1Y
140.2%

LRCX: Recent AI And Memory Upcycle Euphoria Will Likely Fade

Analysts have raised their price target on Lam Research to approximately $110 from about $81, citing the company's stronger than expected earnings momentum, improving wafer fab equipment upcycle exposure, and durable AI driven demand for advanced memory and 3D stacking technologies. Analyst Commentary Recent Street research reflects a broadly constructive view on Lam Research, with multiple firms lifting price targets and highlighting the company’s leverage to an improving wafer fab equipment cycle, AI driven memory demand, and stronger than expected profitability.
NVDA
US$188.61
NVIDIA
7D
10.3%
1Y
34.5%
AMD
US$215.04
Advanced Micro Devices
7D
8.5%
1Y
70.3%

AMD: OpenAI Data Center Pact Will Drive Long-Term AI Upside

The analyst fair value estimate for Advanced Micro Devices has risen sharply from $230.00 to approximately $362.15, as analysts increase long-term revenue growth and margin assumptions based on large multiyear AI accelerator and rack-scale system opportunities highlighted in recent Street research. Analyst Commentary Bullish analysts are broadly constructive on AMD's positioning in the accelerating AI infrastructure cycle, with recent notes emphasizing both the magnitude and duration of the company’s growth runway.
PLTR
US$194.17
Palantir Technologies
7D
9.5%
1Y
135.7%
MSFT
US$488.02
Microsoft
7D
2.5%
1Y
11.1%

MSFT: Expanded AI Partnerships And Infrastructure Will Drive Durable Cloud Leadership

Analysts have nudged their Microsoft price target slightly higher to approximately $650, reflecting confidence that the company's broadened AI partnerships, resilient Azure growth, and durable margin profile justify modestly stronger long term revenue and earnings assumptions despite rising capex and hyperscaler caution. Analyst Commentary Street research remains broadly constructive on Microsoft, with a cluster of recent notes highlighting the company as a primary beneficiary of accelerating AI adoption, robust cloud demand, and deepened model partnerships, even as a minority of voices urge greater caution around hyperscaler capital intensity and returns.
ARM
US$111.55
Arm Holdings
7D
-2.6%
1Y
-15.4%

ARM Risks Mount As AI-Driven Royalties May Not Justify Premium Multiple

We raise our fair value estimate for Arm Holdings to approximately $99 per share from about $86, reflecting analysts' higher price targets driven by solid earnings beats, accelerating licensing and AI related royalty growth, and improved long term revenue and multiple assumptions, despite a modestly higher discount rate and slightly lower profit margin outlook. Analyst Commentary Recent Street research on Arm reflects a generally constructive outlook on earnings power and artificial intelligence related optionality, but it also highlights areas of caution that could pressure the stock's premium valuation if execution falters.
CDW
US$138.71
CDW
7D
-3.5%
1Y
-21.3%
HPQ
US$23.16
HP
7D
-5.2%
1Y
-30.7%

HPQ: Memory Supercycle And Print Weakness Will Shape Balanced Future Returns

Analysts have trimmed their average price target on HP Inc. by about $2 to the mid $20s, as rising memory costs, a weaker printing outlook, and the resulting $1B cost restructuring plan temper the benefit of slightly better expected revenue growth and broadly stable margins.