Tech enters 2026 with AI infrastructure driving record hyperscaler capex, benefiting semiconductor and data center supply chains. Enterprise software demand stays resilient as companies prioritize automation.
Driven by the AI infrastructure cycle, the Technology sector trades at a premium 28x Forward P/E led by mega-caps NVIDIA, Apple, and Microsoft. This dashboard tracks valuation trends, equal-weight basket performance, and sector component data across all 807 stocks.
Sector Market Cap
$27.46T
Tracks 807 stocks · top 50 by market cap
Median YTD Return
+52.5%
Screener universe · median stock return
Median P/E
56.2x
Screener stocks · excludes outliers
Median Dividend Yield
0.59%
Screener stocks · excludes zeros
Sector Screener
Scan the sector leaders, compare valuations and fundamentals, then open the full screener to refine your criteria.
| Ticker | Company | Price | Mkt Cap | P/E | ROE | Div Yield | |
|---|---|---|---|---|---|---|---|
| NVIDIA Corporation | $240.38 | $5.82T | 49.1 | 101.5% | 0% | ||
| Apple Inc. | $333.17 | $4.89T | 44.7 | 171.4% | 0.3% | ||
| Alphabet Inc. | $348.43 | $4.22T | 32.2 | 35.7% | 0.2% | ||
| Alphabet Inc. | $345.09 | $4.18T | 31.9 | 35.7% | 0.2% | ||
| Microsoft Corporation | $530.71 | $3.94T | 29.6 | 34% | 0.7% | ||
| Taiwan Semiconductor Manufacturing Company Limited | $484.24 | $2.51T | 46.1 | 35.9% | 0.6% | ||
| Meta Platforms, Inc. | $743.75 | $1.89T | 31.7 | 30.2% | 0.3% | ||
| Broadcom Inc. | $378.95 | $1.8T | 79.4 | 31% | 0.6% | ||
| Micron Technology, Inc. | $1055.81 | $1.19T | 139.1 | 17.2% | 0% | ||
| Advanced Micro Devices, Inc. | $654.30 | $1.07T | 246.9 | 7.2% | — | ||
| ASML Holding N.V. | $1835.10 | $707.28B | 66.2 | 50.5% | 0.4% | ||
| Intel Corp. | $114.49 | $577.49B | -1943.8 | -0.2% | — | ||
| Cisco Systems, Inc. | $117.54 | $463.28B | 35.3 | 27.3% | 1.4% | ||
| Palantir Technologies Inc. | $192.34 | $441.64B | 305.3 | 25.8% | — | ||
| Applied Materials, Inc. | $530.45 | $421.15B | 61.3 | 35.5% | 0.3% | ||
| Oracle Corporation | $145.91 | $419.64B | 25.0 | 53.4% | 1.4% | ||
| Lam Research Corporation | $332.43 | $415.73B | 57.7 | 65.1% | 0.3% | ||
| Dell Technologies Inc. | $575.85 | $382.51B | 66.3 | — | 0.4% | ||
| Arm Holdings plc American Depositary Shares | $303.86 | $323.31B | 357.5 | 12% | — | ||
| Palo Alto Networks, Inc. | $417.30 | $284.39B | 260.8 | 17.5% | — | ||
| CrowdStrike Holdings, Inc. | $278.11 | $283.19B | -1738.2 | -4.2% | — | ||
| Texas Instruments Incorporated | $298.15 | $272.28B | 54.7 | 30.1% | 1.8% | ||
| Arista Networks, Inc. | $214.76 | $270.42B | 78.1 | 31.4% | — | ||
| KLA Corporation | $198.20 | $258.9B | 54.2 | 87.5% | 0.4% | ||
| Marvell Technology, Inc. | $288.80 | $252.64B | 94.1 | 19.3% | 0.1% | ||
| Sandisk Corporation | $1666.38 | $246.77B | 22.6 | 91.6% | — | ||
| SAP SE | $210.62 | $245.42B | 31.3 | 15.7% | 1.2% | ||
| Amphenol Corporation | $88.62 | $218.53B | 53.1 | 36.6% | 0.4% | ||
| Shopify Inc. | $164.71 | $213.73B | 175.2 | 9.8% | — | ||
| International Business Machines Corporation | $222.13 | $209.28B | 19.9 | 35.2% | 3% |
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IBMSector Outlook
Tech enters 2026 with AI infrastructure driving record hyperscaler capex, benefiting semiconductor and data center supply chains. Enterprise software demand stays resilient as companies prioritize automation.
Key themes: AI monetization moving from infrastructure to application-layer winners, semiconductor cycle recovery, rate sensitivity on growth valuations, and Big Tech regulatory developments.
Valuations are elevated but supported by earnings growth for profitable leaders. Small-cap software and speculative AI names carry more risk.
What supports the upside case.
What can break the thesis or compress multiples.
Key Metrics
Not all financial ratios matter equally in every sector. These are the signals investors track most closely when evaluating technology companies.
Growth investors price tech on forward earnings. A meaningfully lower forward than trailing P/E signals strong expected EPS growth — worth paying a premium for.
Screen by Forward P/E →
Top-line momentum distinguishes leaders from laggards. For software, 20%+ is strong; for hardware, 10%+ in a growth cycle signals new product cycles.
Screen by Revenue Growth TTM →
Software's 70–80% gross margin is the structural moat. Below 60% in software suggests a services drag or hyper-competitive pricing. Semis vary by foundry mix.
Screen by Gross Margin →
The ultimate profitability test for capital-light tech businesses. FCF margin of 20%+ with growth is the ideal combination — cash machines that fund buybacks.
Screen by FCF Margin →
Better than P/E for comparing companies with different capital structures. Cap-weighted tech sector EV/EBITDA benchmarks against what you'd pay for the whole sector.
Screen by EV/EBITDA →
Megacap tech compounders (AAPL, MSFT) generate 30–100% ROE from asset-light models. High and stable ROE is a hallmark of durable competitive advantage.
Screen by Return on Equity →
Learn
Under GICS, the Technology sector covers hardware, software, semiconductors, IT services, and electronic equipment. Key sub-sectors include Semiconductors (NVIDIA, AMD), Application Software (Microsoft, Salesforce), Infrastructure Software (ServiceNow, CrowdStrike), IT Services (Accenture), and Tech Hardware (Apple, Cisco).
XLK tracks S&P 500 tech companies, with mega-caps like Apple, Microsoft, and NVIDIA dominating the allocation. VGT offers broader exposure including mid-caps.
Tech stocks typically trade at premium multiples. Forward P/E is the primary growth comparison, EV/EBITDA works best for capital-light software, and price-to-sales suits high-growth names not yet profitable.
XLK gives diversified exposure to 70+ S&P 500 tech companies at a 0.09% expense ratio. For targeted bets on semiconductors, AI infrastructure, or cybersecurity, individual stock selection works better.
Key risks: premium valuations that compress when rates rise, heavy concentration in the top 5 names, regulatory headwinds (antitrust, export controls), and enterprise IT budget cyclicality.
Use the screener to filter by sub-sector and compare peers on forward P/E, revenue growth, and gross margin.
Explore Further
Semiconductors (NVIDIA, AMD, Intel), software (Microsoft, Salesforce, Adobe), IT services (Accenture, IBM), consumer electronics (Apple), and hardware (Cisco, Dell). About 87 S&P 500 stocks, ~41% of the index by market cap.
Explore More
Dive into other sector analyses with performance tracking, valuation metrics, and industry breakdowns.
Screen and research healthcare sector stocks with daily updated valuations, performance metrics, and pre-filtered metrics for pharma, biotech, and medical devices in 2026.
Screen and research financial services sector stocks with daily updated valuations, yields, and pre-filtered metrics for banks, insurance, and payments in 2026.
Screen and research consumer cyclical sector stocks with daily updated valuations, margins, and pre-filtered metrics for retail, autos, and restaurants in 2026.
Screen and research consumer defensive sector stocks with daily updated valuations, dividend yields, and metrics for food, household goods, and staples retail in 2026.
Screen and research energy sector stocks with daily updated valuations, free cash flows, and metrics for oil, gas, refining, and service companies in 2026.
Screen and research basic materials sector stocks with daily updated valuations, commodity metrics, and pre-filtered metrics for chemicals, metals, and packaging in 2026.
Use our powerful screener to filter Technology stocks by market cap, valuation, profitability, and dozens of other fundamental metrics.
Valuation, growth, profitability, technicals
Prices, fundamentals, and estimates refreshed overnight
Bookmark custom screens and track over time
Track the XLK sector ETF performance vs S&P 500. The basket shows equal-weight returns of top 50 stocks by market cap.
Momentum Leaders
Momentum Underperformers
Market Comparison
Against the S&P 500, Technology currently trades at 45.7x trailing earnings versus 34.5x for the broad market. This premium is backed by stronger underlying fundamentals, with the sector delivering better margins or returns on equity than the broader index.
Valuation
32% above S&P 500 trailing P/E
| Metric | Technology | S&P 500 | Winner |
|---|---|---|---|
| Trailing P/E | 45.7x | 34.5x | S&P 500 cheaper |
| Forward P/E | 28.6x | 22.9x | S&P 500 cheaper |
| EV/EBITDA | 32.8x | 23.4x | S&P 500 cheaper |
83th percentile; range 24.6x to 50.1x
88th percentile; range 14.1x to 50.1x
Quality
Net margin 37.0% vs 28.6%; ROE 74.9% vs 49.3%
| Metric | Technology | S&P 500 | Winner |
|---|---|---|---|
| Net Margin | 37.0% | 28.6% | Sector stronger |
| ROE | 74.9% | 49.3% | Sector stronger |
Income
Sector yield 0.40% vs 0.97%
| Metric | Technology | S&P 500 | Winner |
|---|---|---|---|
| Dividend Yield | 0.4% | 1.0% | S&P 500 yields more |
These cards are built from the full sector universe, then ranked by market cap so you can see which pockets are leading, rich, resilient, or dangerously concentrated.
Industry Scoreboard
Use this table to spot heavyweights, cheap pockets, leaders, and genuinely beaten-down areas before opening the detailed cards below.
Semiconductors 101 stocks | 37.3% $17.02T | Leading -6.5% median 3M | Premium 37.5x median Fwd P/E | Mixed 5.0% median ROE | Strong 13.3% rev growth | Expensive Leader Concentrated |
Internet Services 4 stocks | 22.6% $10.29T | Neutral -5.6% median 3M | Fair 16.7x median Fwd P/E | High 40.3% median ROE | Strong 20.1% rev growth | Watchlist One-name heavy |
Infrastructure Software 144 stocks | 14.3% $6.52T | Neutral -2.1% median 3M | Cheap 17.5x median Fwd P/E | High 4.4% median ROE | Average 10.0% rev growth | Attractive One-name heavy |
Consumer Electronics 19 stocks | 11.1% $5.06T | Neutral -2.0% median 3M | Cheap 25.9x median Fwd P/E | Weak -6.3% median ROE | Weak 2.0% rev growth | Mixed One-name heavy |
Application Software 246 stocks | 5.0% $2.29T | Neutral -1.2% median 3M | Fair 21.5x median Fwd P/E | Mixed -1.7% median ROE | Average 11.7% rev growth | Mixed Diversified |
Tech Hardware & Equipment 78 stocks | 2.7% $1.21T | Neutral -7.8% median 3M | Premium 28.1x median Fwd P/E | Weak 5.1% median ROE | Strong 11.8% rev growth | Mixed Diversified |
Computer Hardware 33 stocks | 2.5% $1.16T | Neutral +1.9% median 3M | Fair 44.2x median Fwd P/E | Weak -2.0% median ROE | Average 8.1% rev growth | Mixed Concentrated |
Communication Equipment 55 stocks | 2.4% $1.08T | Neutral -6.9% median 3M | Fair 26.0x median Fwd P/E | Weak 0.2% median ROE | Weak 6.3% rev growth | Mixed Concentrated |
IT Services 81 stocks | 1.4% $641.68B | Lagging -1.0% median 3M | Cheap 11.8x median Fwd P/E | Mixed 5.2% median ROE | Weak 6.7% rev growth | Broken Concentrated |
Gaming & Multimedia 28 stocks | 0.5% $209.86B | Lagging -8.9% median 3M | Cheap 5.2x median Fwd P/E | Mixed -3.2% median ROE | Average 5.8% rev growth | Beaten Down Concentrated |
Tech Distributors 10 stocks | 0.1% $52.86B | Leading +31.5% median 3M | Cheap 15.5x median Fwd P/E | Mixed 9.5% median ROE | Weak 4.7% rev growth | Mixed One-name heavy |
Software Services 6 stocks | 0.1% $45.85B | Neutral +7.5% median 3M | Fair 17.1x median Fwd P/E | Weak -15.7% median ROE | Strong 8.6% rev growth | Watchlist One-name heavy |
Media & Entertainment 2 stocks | 0.0% $1.06B | Leading +11.6% median 3M | Fair 37.4x median Fwd P/E | High 10.4% median ROE | Strong 11.5% rev growth | Watchlist One-name heavy |
Showing 13 of 13 industries in Technology.
Setup is a quick read of value, quality, growth, momentum, and concentration together.
Earnings Calendar
Earnings reports are the biggest near-term catalysts for sector moves. Track which names report in the next 60 days and size your positions accordingly.
CSCO
$444.67BCisco Systems, Inc.
Wed, Nov 11
AMAT
$430.55BApplied Materials, Inc.
Thu, Nov 12
PANW
$277.21BPalo Alto Networks, Inc.
Wed, Nov 18
NVDA
$5.79TNVIDIA Corporation
Wed, Nov 18
ADI
$204.14BAnalog Devices, Inc.
Tue, Nov 24
DELL
$366.71BDell Technologies Inc.
Tue, Nov 24
MRVL
$237.29BMarvell Technology, Inc.
Tue, Dec 1
CRWD
$277.65BCrowdStrike Holdings, Inc.
Tue, Dec 1
CRM
$188.2BSalesforce, Inc.
Wed, Dec 2
SNOW
$117.49BSnowflake Inc.
Wed, Dec 2
HPE
$90.55BHewlett Packard Enterprise Company
Thu, Dec 3