Tech Stocks Trade at 17x Earnings, Below S&P 500's 18x for First Time Since 2017
Updated
Updated · Yahoo Finance · Nov 7
Tech Stocks Trade at 17x Earnings, Below S&P 500's 18x for First Time Since 2017
3 articles · Updated · Yahoo Finance · Nov 7
Summary
Tech's valuation fell to about 17 times expected earnings this week, under the S&P 500's 18 times and down from 32 times at its October 2025 peak.
Nearly 30% has been wiped from the PHLX Semiconductor Index over five straight losing weeks, with Micron and Sandisk each dropping more than 20% this week as chip and AI names led the selloff.
The broader market held up better than headline indexes suggest: the equal-weight S&P 500 hit a record Wednesday and ended the week roughly 1% lower, while the S&P 500 and Nasdaq each lost about 3%.
Truist said a slowdown in data-center buildouts could hurt chips first but also ease cash burn for major AI spenders, potentially extending the investment cycle.
History still argues for patience: after 33 four-week losing streaks since 1990, the S&P 500 was higher three months later about 80% of the time, though some investors still prefer raising cash.