The ASX technology sector emerged as the strongest performer as investors returned to high-growth software and AI-linked stocks.
Optimism around artificial intelligence, cloud infrastructure, and recurring revenue models supported broad buying interest.
Investor sentiment improved after a sharp rebound in software shares and fresh announcements tied to AI infrastructure expansion.
The technology sector emerged as the strongest performer on the ASX on Thursday, recovering sharply after the previous session’s weakness. Investor sentiment improved after heavyweight software stocks rebounded, led by Xero Limited, while artificial intelligence and infrastructure themes continued to attract buying interest.
WiseTech Global Limited (ASX: WTC) gained 4.17% to AU$38.20
Megaport Limited (ASX: MP1) advanced 3.82% to AU$13.06
Xero rebounds after steep post-results sell-off
Shares of Xero Limited surged after plunging almost 9% in the previous session, as investors returned to the stock following a closer assessment of its FY26 result presentation. The accounting software provider reported FY26 operating revenue of NZ$2.75 billion, up 31% year-on-year, while adjusted EBITDA climbed 18% to NZ$757 million. The company also highlighted accelerating growth in its US business and increasing monetisation opportunities from AI-powered services and payments. Management stated that more than 500,000 customers have adopted Xero’s generative AI features, while its “JAX” AI assistant continued expanding across the platform. Investors also appeared encouraged by Xero’s FY27 revenue guidance of NZ$3.62 billion to NZ$3.73 billion.
Despite concerns over increased spending linked to AI investment and US brand expansion, the rebound suggested investors viewed the prior day’s sell-off as excessive relative to the company’s long-term growth outlook.
WiseTech extends technology sector recovery
WiseTech Global Limited also moved higher as buying returned to large-cap technology names. The stock added more than 4% during the session, helping lift the broader technology sector.
The rally reflected improving appetite for high-growth software companies after recent volatility linked to valuation concerns and global market uncertainty. Investors continued focusing on companies with scalable software platforms and exposure to automation and AI-driven enterprise demand.
Megaport gains on major AI infrastructure contracts
Megaport Limited extended its recent rally after announcing that its subsidiary Latitude.sh secured major compute, network and storage contracts with a combined total contract value of AUD$254 million.
The contracts are tied to AI applications and inference workloads, reinforcing Megaport’s position within the rapidly expanding AI infrastructure market. The company said the agreements represented approximately AUD$90.6 million in annualised recurring revenue once fully operational. Megaport said the agreements would involve around AUD$140.3 million in extra capital investment, mainly directed toward NVIDIA-powered GPU systems, compute infrastructure, and storage equipment. Management also reaffirmed FY26 revenue and EBITDA guidance, helping strengthen investor confidence.
The strong moves across XRO, WTC and MP1 highlighted renewed investor appetite for ASX technology stocks, particularly businesses positioned around artificial intelligence, cloud infrastructure and enterprise software growth themes.
Note- All data presented is based on information available at the time of writing.
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The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Why These 3 ASX Technology Stocks Jumped Today?
Source: Kapitales Research
Highlights:
The technology sector emerged as the strongest performer on the ASX on Thursday, recovering sharply after the previous session’s weakness. Investor sentiment improved after heavyweight software stocks rebounded, led by Xero Limited, while artificial intelligence and infrastructure themes continued to attract buying interest.
Xero rebounds after steep post-results sell-off
Shares of Xero Limited surged after plunging almost 9% in the previous session, as investors returned to the stock following a closer assessment of its FY26 result presentation. The accounting software provider reported FY26 operating revenue of NZ$2.75 billion, up 31% year-on-year, while adjusted EBITDA climbed 18% to NZ$757 million. The company also highlighted accelerating growth in its US business and increasing monetisation opportunities from AI-powered services and payments. Management stated that more than 500,000 customers have adopted Xero’s generative AI features, while its “JAX” AI assistant continued expanding across the platform. Investors also appeared encouraged by Xero’s FY27 revenue guidance of NZ$3.62 billion to NZ$3.73 billion.
Despite concerns over increased spending linked to AI investment and US brand expansion, the rebound suggested investors viewed the prior day’s sell-off as excessive relative to the company’s long-term growth outlook.
WiseTech extends technology sector recovery
WiseTech Global Limited also moved higher as buying returned to large-cap technology names. The stock added more than 4% during the session, helping lift the broader technology sector.
The rally reflected improving appetite for high-growth software companies after recent volatility linked to valuation concerns and global market uncertainty. Investors continued focusing on companies with scalable software platforms and exposure to automation and AI-driven enterprise demand.
Megaport gains on major AI infrastructure contracts
Megaport Limited extended its recent rally after announcing that its subsidiary Latitude.sh secured major compute, network and storage contracts with a combined total contract value of AUD$254 million.
The contracts are tied to AI applications and inference workloads, reinforcing Megaport’s position within the rapidly expanding AI infrastructure market. The company said the agreements represented approximately AUD$90.6 million in annualised recurring revenue once fully operational. Megaport said the agreements would involve around AUD$140.3 million in extra capital investment, mainly directed toward NVIDIA-powered GPU systems, compute infrastructure, and storage equipment. Management also reaffirmed FY26 revenue and EBITDA guidance, helping strengthen investor confidence.
The strong moves across XRO, WTC and MP1 highlighted renewed investor appetite for ASX technology stocks, particularly businesses positioned around artificial intelligence, cloud infrastructure and enterprise software growth themes.
Note- All data presented is based on information available at the time of writing.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au