Sector
Technology sector explained
Companies that design chips, make computers and devices, or write and sell software and cloud services. Their customers range from consumers to large businesses and governments.
Companies we cover
1 company in Technology
NVIDIA
NVDANVIDIA designs the chips, networking and computer systems that run AI data centers; FY2026 revenue was $215.9 billion.
Data depth: RichCovers Q2 FY2027
How companies in this sector earn
How do Technology companies make money?
- Chip designers sell processors and other chips to makers of computers, phones, cars and data centers.
- Many chip designers do not own factories; they pay contract manufacturers to make their chips.
- Software companies sell subscriptions or licences, so a large part of each year's revenue repeats.
- Cloud providers rent out computing power and storage, charging by how much customers use.
- Spending on research and development and on staff is usually the largest cost after making the product.
Who regulates it
Federal Trade Commission (FTC), for competition and consumer protection · Department of Justice Antitrust Division · Department of Commerce Bureau of Industry and Security, for export controls on advanced chips
What moves results across the sector
- Spending by large companies on data centers and AI computing, which the companies describe in their quarterly reports.
- US export rules on advanced chips and the countries they cover.
- Supply from contract chip manufacturers, which many designers depend on.
Words you'll meet
Key terms
- Data center
- A building full of servers that runs websites, apps and AI models for many users at once.
- Fabless
- A chip company that designs chips but pays another company to manufacture them.
- Subscription revenue
- Money customers pay regularly, often monthly or yearly, to keep using software or a service.
- Gross margin
- The share of revenue left after the direct cost of making the product, before research, sales and other costs.
- Remaining performance obligations
- Revenue from signed contracts that the company has not yet recorded because the work is not yet delivered.
Last updated Oct 27, 2026.
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