# S&P Global tech sector trades at 21x forward earnings, lowest since November 30 2022

Digest AI · Business & Funding · published 2026-09-20T23:35:00Z

Canonical: https://digestai.news/story/s-p-global-tech-sector-trades-at-21x-forward-earnings-lowest-since-nov

## Summary

The S&P Global tech sector is now valued at 21x forward earnings, a level last seen before ChatGPT debuted on November 30, 2022, according to Truist analyst Sam Grelck. That marks a drop from 32x forward P/E in October 2025, roughly a 34% compression, even as forward earnings estimates for the sector have climbed 19% over the past three months.

Semiconductor valuations show a similar pattern, with the PHLX Semiconductor Index around 20x forward P/E, matching its January 2023 level, while the SOX peaked at 30x forward earnings in mid-2024 and has since shed about a third of its premium. Analysts, including Grelck, say the market may have over‑corrected, noting that AI‑related revenue continues to grow despite cautionary statements from Anthropic CEO Dario Amodei, OpenAI’s Sam Altman and Elon Musk.

The article highlights that the valuation reset could affect crypto markets, as Bitcoin and other digital assets have historically moved with tech sentiment, and AI chip makers also supply hardware for crypto mining.

## Key points

- S&P Global tech sector at 21x forward earnings, down from 32x in Oct 2025, a 34% valuation compression.
- Forward earnings estimates for tech rose 19% over three months while valuations fell, widening price‑earnings gap.
- Anthropic CEO Dario Amodei, OpenAI’s Sam Altman and Elon Musk each urged greater AI caution, spurring investor anxiety.

## Why it matters

Lower tech valuations despite rising earnings signal investor caution over AI risks, affecting funding, chip demand and related crypto markets.

## Sources

1. [Tech stocks hit lowest valuations since OpenAI launched ChatGPT](https://cryptobriefing.com/tech-stocks-lowest-valuations-chatgpt-launch) (cryptobriefing.com, 2026-09-20)

## Cite

Digest AI, "S&P Global tech sector trades at 21x forward earnings, lowest since November 30 2022", 20 September 2026, https://digestai.news/story/s-p-global-tech-sector-trades-at-21x-forward-earnings-lowest-since-nov

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