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U.S. Tech Sector Analysis

UpdatedDec 12, 2025
DataAggregated Company Financials
Companies970
  • 7D1.1%
  • 3M6.2%
  • 1Y23.9%
  • YTD25.8%

Over the last 7 days, the Tech industry has risen 1.5%, driven by gains from Broadcom of 6.7%. This means that the industry has gained 24% over the past year. 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
Fri, 12 Dec 2025US$23.2tUS$2.6tUS$500.0b31.6x46.4x9x
Sun, 09 Nov 2025US$22.8tUS$2.5tUS$478.4b30.5x47.6x9x
Tue, 07 Oct 2025US$22.7tUS$2.5tUS$439.1b32x51.6x9.1x
Thu, 04 Sep 2025US$20.6tUS$2.5tUS$429.3b28.5x48x8.4x
Sat, 02 Aug 2025US$20.7tUS$2.4tUS$412.4b27.4x50.3x8.6x
Mon, 30 Jun 2025US$19.6tUS$2.4tUS$393.2b28.4x49.8x8.2x
Wed, 28 May 2025US$17.5tUS$2.4tUS$385.8b27.3x45.5x7.4x
Fri, 25 Apr 2025US$15.3tUS$2.3tUS$387.0b25.8x39.5x6.6x
Sun, 23 Mar 2025US$16.6tUS$2.3tUS$386.9b27.2x42.9x7.1x
Tue, 18 Feb 2025US$18.9tUS$2.3tUS$369.9b32.4x51x8.2x
Thu, 16 Jan 2025US$17.9tUS$2.3tUS$367.0b32.5x48.7x7.9x
Sat, 14 Dec 2024US$18.7tUS$2.3tUS$363.5b32.5x51.4x8.3x
Mon, 11 Nov 2024US$18.3tUS$2.2tUS$352.6b33.3x51.8x8.2x
Wed, 09 Oct 2024US$17.3tUS$2.2tUS$378.2b30.1x45.7x8x
Fri, 06 Sep 2024US$16.0tUS$2.2tUS$378.4b28.2x42.3x7.4x
Sun, 04 Aug 2024US$15.6tUS$2.1tUS$363.3b29.6x42.9x7.3x
Tue, 02 Jul 2024US$16.9tUS$2.1tUS$362.8b30.1x46.4x8x
Thu, 30 May 2024US$15.6tUS$2.1tUS$349.6b29.8x44.5x7.6x
Sat, 27 Apr 2024US$14.2tUS$2.1tUS$335.6b28.4x42.3x6.9x
Mon, 25 Mar 2024US$14.9tUS$2.0tUS$328.6b27.8x45.4x7.3x
Wed, 21 Feb 2024US$14.0tUS$2.0tUS$310.2b27.3x45.2x6.9x
Fri, 19 Jan 2024US$13.6tUS$2.0tUS$292.0b25.9x46.7x6.7x
Sun, 17 Dec 2023US$13.4tUS$2.1tUS$293.6b26.5x45.5x6.5x
Tue, 14 Nov 2023US$12.3tUS$2.0tUS$279.7b23.2x44x6x
Thu, 12 Oct 2023US$12.0tUS$2.0tUS$270.2b25.2x44.2x5.9x
Sat, 09 Sep 2023US$11.9tUS$2.0tUS$272.9b23.8x43.8x5.9x
Mon, 07 Aug 2023US$11.9tUS$2.0tUS$262.2b25.6x45.4x5.9x
Wed, 05 Jul 2023US$12.0tUS$2.0tUS$258.1b25.2x46.6x5.9x
Fri, 02 Jun 2023US$11.5tUS$2.0tUS$263.0b24.3x43.6x5.6x
Sun, 30 Apr 2023US$10.3tUS$2.0tUS$265.6b20.9x38.8x5.1x
Tue, 28 Mar 2023US$10.0tUS$2.0tUS$278.4b22.3x35.8x4.9x
Thu, 23 Feb 2023US$10.7tUS$2.3tUS$296.9b23.5x36.1x4.8x
Sat, 21 Jan 2023US$10.3tUS$2.2tUS$327.5b23.5x31.5x4.6x
Mon, 19 Dec 2022US$10.0tUS$2.3tUS$330.1b21.7x30.2x4.4x
Price to Earnings Ratio

30.2x


Total Market Cap: US$10.0tTotal Earnings: US$330.1bTotal Revenue: US$2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.6x202320242025
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 44.6x.
  • The 3-year average PS ratio of 7.0x 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 15% per year over the last three years.
  • Revenues for these companies have grown 4.5% 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 Market0.71%
Tech1.10%
Electronic Equipment and Components4.49%
Communications3.97%
Semiconductors1.82%
IT0.90%
Software0.66%
Tech Hardware-0.54%
Industry PE
  • Investors are most optimistic about the Semiconductors industry, which is trading close to its 3-year average PE ratio of 51.3x.
    • Analysts are expecting annual earnings growth of 26.3%, which is higher than its past year's earnings growth of 3.3% 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 31.9x.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 26% over the next 5 years.
  • This is better than its past earnings growth rate of 3.3% 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
AVGO BroadcomUS$406.376.7%
+US$119.7b		124.9%PE102x
MU Micron TechnologyUS$258.4614.0%
+US$35.7b		163.1%PE34x
PLTR Palantir TechnologiesUS$187.545.4%
+US$22.9b		156.2%PE408.1x
MSFT MicrosoftUS$483.470.5%
+US$19.5b		7.5%PE34.3x
LRCX Lam ResearchUS$168.717.4%
+US$14.6b		123.2%PE36.5x

Latest News

AVGO
US$406.37
Broadcom
7D
6.7%
1Y
124.9%
MSFT
US$483.47
Microsoft
7D
0.5%
1Y
7.5%
ORCL
US$198.85
Oracle
7D
-7.2%
1Y
13.4%
INTC
US$39.51
Intel
7D
-2.4%
1Y
90.1%
MRVL
US$89.43
Marvell Technology
7D
-8.9%
1Y
-18.0%
STX
US$307.85
Seagate Technology Holdings
7D
15.9%
1Y
215.3%

STX: AI Storage Demand And Tight Supply Will Support Durable Upside

Analysts increased their price target for Seagate Technology Holdings by roughly $2 per share. This reflects growing confidence in structurally tight HDD supply, sustained nearline demand from AI infrastructure buildouts, and management's disciplined capacity additions that support higher long term pricing and margins.
CRDO
US$154.47
Credo Technology Group Holding
7D
-14.6%
1Y
125.8%
CRM
US$262.35
Salesforce
7D
6.0%
1Y
-26.7%
NVDA
US$180.93
NVIDIA
7D
-0.8%
1Y
34.8%
AAPL
US$278.03
Apple
7D
-1.0%
1Y
12.1%
LRCX
US$168.71
Lam Research
7D
7.4%
1Y
123.2%

LRCX: AI Memory And WFE Upswing Will Drive Balanced Future Returns

Analysts have nudged our Lam Research fair value estimate higher, from $158.52 to $160.30. This reflects increased confidence in the companys record profitability, sustained beat and raise cadence, and strengthening AI driven WFE demand despite some valuation pushback.
SNOW
US$220.51
Snowflake
7D
-6.1%
1Y
29.7%
PLTR
US$187.54
Palantir Technologies
7D
5.4%
1Y
156.2%
MU
US$258.46
Micron Technology
7D
14.0%
1Y
163.1%
APP
US$716.98
AppLovin
7D
4.9%
1Y
119.8%

APP: Expanded Share Repurchases Will Drive Future Bullish Momentum

Analysts have modestly raised their price target on AppLovin by about 1 percent to approximately 728.25 dollars, citing slightly stronger expected revenue growth, marginally improved profit margins, and a still elevated but easing future earnings multiple. What's in the News AppLovin expanded its share repurchase activity, completing the buyback of 76.6 million shares, or about 21.4% of shares outstanding, for roughly 4.18 billion dollars, including 1.19 million shares repurchased in the latest quarter for 510.29 million dollars (company buyback update).
ARM
US$136.14
Arm Holdings
7D
-3.1%
1Y
-8.0%

ARM: Expanding AI Initiatives Will Drive Rising Licensing And Royalty Momentum

Arm Holdings' fair value estimate has been raised by analysts to $167.97 from $166.72. This change reflects solid quarterly results, expanded AI initiatives, and continued licensing and royalty growth.