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.
Sector AnalysisETF: XLKUpdated Jul 8, 2026
Technology Sector Stocks: Performance, Valuations & Industry Comps
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
$24.03T
Tracks 807 stocks · top 50 by market cap
Median YTD Return
+22.9%
Screener universe · median stock return
Median P/E
57.4x
Screener stocks · excludes outliers
Median Dividend Yield
0.62%
Screener stocks · excludes zeros
Loading Performance Chart...
Sector Screener
Rank the Technology with daily updated market and fundamental data
Scan the sector leaders, compare valuations and fundamentals, then open the full screener to refine your criteria.
Filter by:
| Ticker | Company | Price | Mkt Cap | P/E | ROE | Div Yield | |
|---|---|---|---|---|---|---|---|
| NVIDIA Corporation | $196.93 | $4.77T | 40.2 | 101.5% | 0% | ||
| Apple Inc. | $310.66 | $4.56T | 41.6 | 171.4% | 0.3% | ||
| Alphabet Inc. | $367.03 | $4.44T | 34.0 | 35.7% | 0.2% | ||
| Alphabet Inc. | $363.62 | $4.4T | 33.6 | 35.7% | 0.2% | ||
| Microsoft Corporation | $388.84 | $2.89T | 28.5 | 33.3% | 0.8% | ||
| Taiwan Semiconductor Manufacturing Company Limited | $432.57 | $2.24T | 41.8 | 35.9% | 0.7% | ||
| Broadcom Inc. | $370.78 | $1.76T | 77.7 | 31% | 0.6% | ||
| Meta Platforms, Inc. | $615.58 | $1.56T | 26.2 | 30.2% | 0.3% | ||
| Micron Technology, Inc. | $938.38 | $1.06T | 123.6 | 17.2% | 0% | ||
| Advanced Micro Devices, Inc. | $516.11 | $841.43B | 194.8 | 7.2% | — | ||
| ASML Holding N.V. | $1747.28 | $673.43B | 61.9 | 50.5% | 0.4% | ||
| Intel Corporation | $110.39 | $554.27B | -1874.2 | -0.2% | — | ||
| Cisco Systems, Inc. | $111.79 | $440.61B | 43.8 | 22.1% | 1.4% | ||
| Applied Materials, Inc. | $554.50 | $440.25B | 64.0 | 35.5% | 0.3% | ||
| Oracle Corporation | $141.64 | $407.36B | 24.3 | 53.4% | 1.4% | ||
| Lam Research Corporation | $326.13 | $407.26B | 78.6 | 58.2% | 0.3% | ||
| Arm Holdings plc American Depositary Shares | $300.43 | $319.66B | 353.4 | 12% | — | ||
| Palantir Technologies Inc. | $134.37 | $307.9B | 213.3 | 25.8% | — | ||
| International Business Machines Corporation | $306.13 | $287.16B | 27.4 | 35.2% | 2.2% | ||
| KLA Corporation | $216.47 | $282.77B | 71.3 | 100.8% | 0.3% | ||
| Dell Technologies Inc. | $416.98 | $276.98B | 48.0 | — | 0.5% | ||
| Texas Instruments Incorporated | $293.30 | $267.04B | 53.8 | 30.1% | 1.9% | ||
| Sandisk Corporation | $1617.70 | $238.77B | -142.9 | -17.8% | — | ||
| Palo Alto Networks, Inc. | $337.04 | $229.7B | 210.7 | 17.5% | — | ||
| Arista Networks, Inc. | $166.46 | $209.6B | 60.5 | 31.4% | — | ||
| Marvell Technology, Inc. | $230.70 | $201.82B | 75.1 | 19.3% | 0.1% | ||
| Seagate Technology Holdings plc | $915.19 | $199.58B | 135.2 | — | 0.3% | ||
| CrowdStrike Holdings, Inc. | $194.62 | $198.17B | -1216.4 | -4.2% | — | ||
| Amphenol Corporation | $158.61 | $195B | 47.5 | 36.6% | 0.4% | ||
| QUALCOMM Incorporated | $182.97 | $192.85B | 36.5 | 23.3% | 1.9% |
NVDANVIDIA Corporation
$196.93Price
Mkt Cap$4.77T
P/E40.2
ROE101.5%
Div Yield0%
AAPLApple Inc.
$310.66Price
Mkt Cap$4.56T
P/E41.6
ROE171.4%
Div Yield0.3%
GOOGLAlphabet Inc.
$367.03Price
Mkt Cap$4.44T
P/E34.0
ROE35.7%
Div Yield0.2%
GOOGAlphabet Inc.
$363.62Price
Mkt Cap$4.4T
P/E33.6
ROE35.7%
Div Yield0.2%
MSFTMicrosoft Corporation
$388.84Price
Mkt Cap$2.89T
P/E28.5
ROE33.3%
Div Yield0.8%
TSMTaiwan Semiconductor Manufacturing Company Limited
$432.57Price
Mkt Cap$2.24T
P/E41.8
ROE35.9%
Div Yield0.7%
AVGOBroadcom Inc.
$370.78Price
Mkt Cap$1.76T
P/E77.7
ROE31%
Div Yield0.6%
METAMeta Platforms, Inc.
$615.58Price
Mkt Cap$1.56T
P/E26.2
ROE30.2%
Div Yield0.3%
MUMicron Technology, Inc.
$938.38Price
Mkt Cap$1.06T
P/E123.6
ROE17.2%
Div Yield0%
AMDAdvanced Micro Devices, Inc.
$516.11Price
Mkt Cap$841.43B
P/E194.8
ROE7.2%
Div Yield—
ASMLASML Holding N.V.
$1747.28Price
Mkt Cap$673.43B
P/E61.9
ROE50.5%
Div Yield0.4%
INTCIntel Corporation
$110.39Price
Mkt Cap$554.27B
P/E-1874.2
ROE-0.2%
Div Yield—
CSCOCisco Systems, Inc.
$111.79Price
Mkt Cap$440.61B
P/E43.8
ROE22.1%
Div Yield1.4%
AMATApplied Materials, Inc.
$554.50Price
Mkt Cap$440.25B
P/E64.0
ROE35.5%
Div Yield0.3%
ORCLOracle Corporation
$141.64Price
Mkt Cap$407.36B
P/E24.3
ROE53.4%
Div Yield1.4%
LRCXLam Research Corporation
$326.13Price
Mkt Cap$407.26B
P/E78.6
ROE58.2%
Div Yield0.3%
ARMArm Holdings plc American Depositary Shares
$300.43Price
Mkt Cap$319.66B
P/E353.4
ROE12%
Div Yield—
PLTRPalantir Technologies Inc.
$134.37Price
Mkt Cap$307.9B
P/E213.3
ROE25.8%
Div Yield—
IBMInternational Business Machines Corporation
$306.13Price
Mkt Cap$287.16B
P/E27.4
ROE35.2%
Div Yield2.2%
KLACKLA Corporation
$216.47Price
Mkt Cap$282.77B
P/E71.3
ROE100.8%
Div Yield0.3%
DELLDell Technologies Inc.
$416.98Price
Mkt Cap$276.98B
P/E48.0
ROE—
Div Yield0.5%
TXNTexas Instruments Incorporated
$293.30Price
Mkt Cap$267.04B
P/E53.8
ROE30.1%
Div Yield1.9%
SNDKSandisk Corporation
$1617.70Price
Mkt Cap$238.77B
P/E-142.9
ROE-17.8%
Div Yield—
PANWPalo Alto Networks, Inc.
$337.04Price
Mkt Cap$229.7B
P/E210.7
ROE17.5%
Div Yield—
ANETArista Networks, Inc.
$166.46Price
Mkt Cap$209.6B
P/E60.5
ROE31.4%
Div Yield—
MRVLMarvell Technology, Inc.
$230.70Price
Mkt Cap$201.82B
P/E75.1
ROE19.3%
Div Yield0.1%
STXSeagate Technology Holdings plc
$915.19Price
Mkt Cap$199.58B
P/E135.2
ROE—
Div Yield0.3%
CRWDCrowdStrike Holdings, Inc.
$194.62Price
Mkt Cap$198.17B
P/E-1216.4
ROE-4.2%
Div Yield—
APHAmphenol Corporation
$158.61Price
Mkt Cap$195B
P/E47.5
ROE36.6%
Div Yield0.4%
QCOMQUALCOMM Incorporated
$182.97Price
Mkt Cap$192.85B
P/E36.5
ROE23.3%
Div Yield1.9%
Sector Outlook
Technology Sector Outlook — Q1 2026
Updated Q1 20264 upside cases4 risk cases
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.
↑
Bull Case for Technology
What supports the upside case.
AI capex supercycle
Hyperscalers are committing $300B+ in annual AI data center capex by 2026, directly benefiting NVIDIA, Broadcom, and infrastructure names. AI-powered software is showing early monetization with expanding enterprise adoption.
Secular growth insulated from rate cycles
Cloud migration has 10+ years of runway. Software margins of 70–80% compound strongly since fixed costs don't scale with revenue. Enterprise IT budgets are more durable than consumer spending — companies cut headcount before IT subscriptions.
Earnings breadth expanding beyond megacaps
Semiconductors (AMD, Marvell) and mid-cap software (Cloudflare, Datadog) are re-accelerating as the optimization cycle unwinds. FCF margins are expanding with operating leverage, and sector earnings growth is expected to outpace the S&P 500 through 2026.
Platform moats and switching costs
Azure, AWS, and Google Cloud have deeply embedded enterprise customers with high switching costs. Workday, ServiceNow, and Salesforce are wired into core workflows — churn stays low even in weak environments, supporting recurring revenue and pricing power.
↓
Bear Case / Key Risks
What can break the thesis or compress multiples.
Concentration and valuation risk
The top 6 tech stocks represent over 65% of XLK. A multiple compression in one or two megacaps can drag the entire sector. Tech's forward P/E of ~28× versus the S&P 500's ~21× leaves limited safety margin if earnings miss.
Interest rate sensitivity
Growth stocks are more sensitive to rate changes. A 100bps move can compress valuations 15–20% for unprofitable tech. The 2022 drawdown (−33% for XLK) was almost entirely valuation-driven, not earnings-driven.
Semiconductor cycle risk
Semiconductors are cyclical despite secular AI demand. Inventory build-ups and capex digestion can cause 30–50% earnings drawdowns. If AI hardware investment pauses, NVIDIA and its supply chain are most exposed. China export controls add further uncertainty.
Regulatory and geopolitical headwinds
Big Tech faces global antitrust scrutiny — EU Digital Markets Act, DOJ investigations, and App Store remedies. US-China decoupling disrupts supply chains and restricts access to the second-largest tech market.
Key Metrics
What Metrics Matter for Technology Stocks
Not all financial ratios matter equally in every sector. These are the signals investors track most closely when evaluating technology companies.
Forward P/E
1Growth 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 →
Revenue Growth TTM
2Top-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 →
Gross Margin
3Software'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 →
FCF Margin
4The 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 →
EV/EBITDA
5Better 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 →
Return on Equity
6Megacap 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
Understanding the Technology Sector
What Is the Technology Sector?
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.
How to Invest in Technology Stocks
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
Related Themes & Screens in Technology
Frequently Asked Questions
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
Other Market Sectors
Dive into other sector analyses with performance tracking, valuation metrics, and industry breakdowns.
Healthcare Sector Stocks: Performance, Valuations & Industry Comps
XLVScreen and research healthcare sector stocks with daily updated valuations, performance metrics, and pre-filtered metrics for pharma, biotech, and medical devices in 2026.
Financial Services Sector Stocks: Performance, Valuations & Industry Comps
XLFScreen and research financial services sector stocks with daily updated valuations, yields, and pre-filtered metrics for banks, insurance, and payments in 2026.
Consumer Cyclical Sector Stocks: Performance, Valuations & Industry Comps
XLYScreen and research consumer cyclical sector stocks with daily updated valuations, margins, and pre-filtered metrics for retail, autos, and restaurants in 2026.
Consumer Defensive Sector Stocks: Performance, Valuations & Industry Comps
XLPScreen and research consumer defensive sector stocks with daily updated valuations, dividend yields, and metrics for food, household goods, and staples retail in 2026.
Energy Sector Stocks: Performance, Valuations & Industry Comps
XLEScreen and research energy sector stocks with daily updated valuations, free cash flows, and metrics for oil, gas, refining, and service companies in 2026.
Basic Materials Sector Stocks: Performance, Valuations & Industry Comps
XLBScreen and research basic materials sector stocks with daily updated valuations, commodity metrics, and pre-filtered metrics for chemicals, metals, and packaging in 2026.
Ready to Build Your Technology Portfolio?
Use our powerful screener to filter Technology stocks by market cap, valuation, profitability, and dozens of other fundamental metrics.
100+ Metrics
Valuation, growth, profitability, technicals
Daily Updates
Prices, fundamentals, and estimates refreshed overnight
Save & Share
Bookmark custom screens and track over time