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

U.S. Tech Sector Analysis

UpdatedAug 17, 2026
DataAggregated Company Financials
Companies979
  • 7D0.5%
  • 3M7.9%
  • 1Y33.7%
  • YTD25.6%

Last week, the Tech industry hasn't moved much but Micron Technology is up 11% in that time. As for the the longer term, the industry is up 34% over the past 12 months. Earnings are forecast to grow by 23% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 17 Aug 2026US$22.7tUS$3.0tUS$635.9b34.7x35.7x7.6x
Wed, 15 Jul 2026US$26.6tUS$2.9tUS$645.3b34.2x41.2x9.2x
Fri, 12 Jun 2026US$26.1tUS$2.8tUS$618.2b35.4x42.2x9.2x
Sun, 10 May 2026US$20.6tUS$2.8tUS$570.4b35.4x36.2x7.4x
Tue, 07 Apr 2026US$20.8tUS$2.7tUS$554.9b30x37.6x7.7x
Thu, 05 Mar 2026US$21.2tUS$2.7tUS$539.8b30.3x39.3x7.9x
Sat, 31 Jan 2026US$22.4tUS$2.6tUS$528.5b30.2x42.3x8.6x
Mon, 29 Dec 2025US$22.9tUS$2.6tUS$506.9b30.7x45.1x8.8x
Wed, 26 Nov 2025US$22.2tUS$2.6tUS$492.8b29.1x45x8.6x
Fri, 24 Oct 2025US$22.7tUS$2.5tUS$442.4b30.4x51.2x9x
Sun, 21 Sep 2025US$22.2tUS$2.5tUS$435.4b31.4x51x9x
Tue, 19 Aug 2025US$21.1tUS$2.4tUS$418.3b27.8x50.5x8.7x
Thu, 17 Jul 2025US$20.3tUS$2.4tUS$393.2b29.1x51.6x8.5x
Sat, 14 Jun 2025US$18.7tUS$2.4tUS$391.0b27.5x47.9x7.9x
Mon, 12 May 2025US$16.8tUS$2.3tUS$383.7b25.7x43.7x7.1x
Wed, 09 Apr 2025US$14.1tUS$2.3tUS$386.8b23.6x36.5x6.1x
Fri, 07 Mar 2025US$17.0tUS$2.3tUS$379.3b28.1x44.9x7.3x
Sun, 02 Feb 2025US$18.0tUS$2.3tUS$370.8b33.3x48.5x7.9x
Tue, 31 Dec 2024US$18.7tUS$2.3tUS$366.8b32x51x8.3x
Thu, 28 Nov 2024US$18.2tUS$2.2tUS$361.4b33x50.3x8.1x
Sat, 26 Oct 2024US$17.7tUS$2.2tUS$378.1b30.6x46.8x8x
Mon, 23 Sep 2024US$17.0tUS$2.2tUS$375.4b28.8x45.2x7.8x
Wed, 21 Aug 2024US$17.1tUS$2.1tUS$368.2b29.7x46.3x8x
Fri, 19 Jul 2024US$17.0tUS$2.1tUS$363.1b31.3x46.8x8x
Sun, 16 Jun 2024US$17.0tUS$2.1tUS$360.7b29.1x47.1x8x
Tue, 14 May 2024US$14.6tUS$2.0tUS$337.0b29.5x43.3x7.2x
Thu, 11 Apr 2024US$14.6tUS$2.0tUS$328.6b28.1x44.4x7.1x
Sat, 09 Mar 2024US$14.7tUS$2.0tUS$324.8b28.3x45.1x7.2x
Mon, 05 Feb 2024US$14.2tUS$2.1tUS$305.9b26.6x46.3x6.9x
Wed, 03 Jan 2024US$13.1tUS$2.1tUS$292.7b25.9x44.6x6.4x
Fri, 01 Dec 2023US$12.8tUS$2.1tUS$292.6b24.9x43.7x6.2x
Sun, 29 Oct 2023US$11.2tUS$2.0tUS$278.4b22.2x40.1x5.5x
Tue, 26 Sep 2023US$11.5tUS$2.0tUS$273.1b24.7x42.1x5.6x
Thu, 24 Aug 2023US$11.9tUS$2.0tUS$264.9b24.3x44.9x5.9x
Price to Earnings Ratio

44.9x


Total Market Cap: US$11.9tTotal Earnings: US$264.9bTotal Revenue: US$2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Tech Sector Price to Earnings3Y Average 44.9x202420252026
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 35.7x which is lower than its 3-year average PE of 44.9x.
  • 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 34% per year over the last three years.
  • Revenues for these companies have grown 14% 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 Market0.63%
Tech0.50%
IT2.59%
Tech Hardware0.85%
Software0.81%
Semiconductors0.26%
Electronic Equipment and Components-0.44%
Communications-1.53%
Industry PE
  • Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 36.1x.
    • Analysts are expecting annual earnings growth of 24.5%, 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 53.6x.
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 9.5% 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
MU Micron TechnologyUS$971.6610.7%
+US$106.3b		703.9%PE21.7x
SNDK SandiskUS$1.64k35.4%
+US$63.9b		3,584.6%PE21.4x
AMD Advanced Micro DevicesUS$514.396.4%
+US$50.7b		189.8%PE129.8x
STX Seagate Technology HoldingsUS$973.4419.8%
+US$36.4b		530.3%PE69.3x
WDC Western DigitalUS$508.8017.2%
+US$33.7b		577.9%PE19.8x

Latest News

MU
US$971.66
Micron Technology
7D
10.7%
1Y
703.9%
Seeking Alpha • 21h

Micron: I Think We Could Get An Upside Breakout

Summary Micron Technology is at a tactical short-term buy point, with bullish technical signals and supportive fundamentals. DRAM and NAND markets remain tight, with AI/HBM demand absorbing capacity, supporting high prices and margins for MU. I maintain a Hold rating for long-term investors, citing valuation risks if memory supply expands and margins compress. My strategy involves tight stop-losses and dynamic position sizing, balancing tactical upside with macro and sector risks. Read the full article on Seeking Alpha
AVGO
US$392.99
Broadcom
7D
-8.1%
1Y
28.3%
CSCO
US$111.68
Cisco Systems
7D
-8.0%
1Y
68.7%
AMAT
US$507.18
Applied Materials
7D
-5.9%
1Y
213.5%
COHR
US$325.83
Coherent
7D
-14.1%
1Y
248.9%
AAPL
US$305.93
Apple
7D
-2.4%
1Y
32.1%
NBIS
US$277.68
Nebius Group
7D
47.7%
1Y
287.7%
MSFT
US$495.40
Microsoft
7D
-0.9%
1Y
-4.8%
STX
US$973.44
Seagate Technology Holdings
7D
19.8%
1Y
530.3%
LRCX
US$332.36
Lam Research
7D
6.7%
1Y
234.0%
AMD
US$514.39
Advanced Micro Devices
7D
6.4%
1Y
189.8%
SNDK
US$1,641.11
Sandisk
7D
35.4%
1Y
3,584.6%
NVDA
US$225.16
NVIDIA
7D
0.5%
1Y
24.8%
CDNS
US$324.82
Cadence Design Systems
7D
-4.3%
1Y
-7.2%
Narrative Update • Aug 13

CDNS: Agentic AI Design Tools And Digital Twins Will Drive Future Upside

Cadence Design Systems' updated analyst price target moved modestly higher, supported by analysts who point to solid Q2 execution, raised guidance, and long term AI related demand drivers, even as questions remain around valuation at roughly a 63x 2027 P/E and the timing of AI monetization. Analyst Commentary Analysts are broadly positive on Cadence Design Systems after Q2, with many lifting price targets and pointing to a mix of AI exposure, strong core electronic design automation demand, and a growing backlog, while a minority remains more measured given the current P/E and open questions on AI monetization and margins.
WDC
US$508.80
Western Digital
7D
17.2%
1Y
577.9%
TXN
US$279.58
Texas Instruments
7D
-2.3%
1Y
43.7%
New Narrative • Aug 09

TXN — Fair Value $285

The unglamorous silicon everything electrical depends on. TI's moat is manufacturing, not design: 300mm scale cost leadership, 100,000+ SKUs sold direct, product lifecycles measured in decades.