[EverHint Technology Sector Picks] — October 7, 2025
Overview
The EverHint Technology Sector — our curated watchlist of key U.S. technology and semiconductor names — shows a mixed valuation landscape today.
While large-cap software remains richly priced, semiconductor valuations have begun to normalize amid moderating earnings expectations.
Market sentiment across the group leans constructively neutral, with selective strength in cybersecurity and design automation names.
IT15 Snapshot
| Ticker | Company | P/E Ratio | Sentiment |
|---|---|---|---|
| CDNS | Cadence Design Systems | 95.1× | Premium valuation sustained by AI design demand |
| IT | Gartner | 15.3× | Attractive multiple vs. sector peers; strong recurring revenue base |
| MCHP | Microchip Technology | –201.4× | Negative EPS reflects temporary inventory reset |
| ON | ON Semiconductor | 44.2× | Reasonable for growth trajectory; EV exposure remains key |
| SWKS | Skyworks Solutions | 28.8× | Mid-tier valuation; handset exposure weighs slightly |
| TXN | Texas Instruments | 33.0× | Stable margins; defensive long-term compounder |
| VSAT | Viasat | –7.4× | Still in loss territory; LEO satellite transition ongoing |
| CHKP | Check Point Software | 25.1× | Consistent earnings; undervalued vs. growth peers |
| NTAP | NetApp | 20.5× | Attractive multiple; steady cash flows in hybrid storage |
| FTNT | Fortinet | 34.1× | Strong top-line; margin compression near-term due to reinvestment |
| MPWR | Monolithic Power Systems | 59.6× | High growth, high valuation — still AI-driven |
| SNPS | Synopsys | 92.4× | Pricing mirrors CDNS; strategic AI design leverage |
| ACLS | Axcelis Technologies | 21.7× | Cheap vs. peers; cyclical tailwind from power semis |
| AVGO | Broadcom | 27.4× | Balanced fundamentals; AI infrastructure growth supports premium |
| NVDA | NVIDIA | 41.3× | Cooling multiple but still top AI momentum leader |
Key Insights
- Design Automation (CDNS, SNPS)
Remain premium-valued on persistent AI-driven demand in EDA tools.
Multiples (90×+) are elevated but supported by structural growth visibility. - Semiconductors (NVDA, ON, TXN, MCHP, ACLS)
Multiples are converging back toward mid-30s range.- NVDA and ON hold premium growth narratives.
- MCHP’s negative P/E is transitional, linked to inventory correction.
- ACLS continues to screen as value within growth, a rare setup.
- Cybersecurity (CHKP, FTNT)
Solid fundamentals, moderate valuations.
CHKP appears undervalued relative to its free cash flow yield, while FTNT shows margin pressure but durable revenue expansion. - Networking & Storage (NTAP, VSAT)
NTAP offers steady dividends and FCF; attractive for defensive investors.
VSAT remains a turnaround story pending stabilization of satellite broadband integration.
Vlad’s Take — EverHint View
The IT15 group reflects a healthy correction and re-rating toward fundamentals after a long stretch of AI-driven exuberance.
- High-quality compounders (TXN, NTAP, CHKP) trade at reasonable valuations, forming the value backbone of the sector.
- Growth leaders (NVDA, CDNS, SNPS, MPWR) remain expensive but are backed by visible demand pipelines.
- Select laggards like MCHP and VSAT offer contrarian setups for patient investors.
Overall Sector Sentiment: Neutral to Positive
- Valuations cooling from extremes.
- Fundamentals intact across most subsectors.
- Investors rotating from high-multiple growth to steady earners within tech.
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