Amid the carnage, this ASX tech share just hit an 8-year high

Lasers are lighting up this company’s share price…

| More on:
a happy group of workers around a table raise their arms in the air as though celebrating a work achievement. One woman is on her feet with her arm raised in the air in a fist pumping action.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX tech shares have had their returns levelled this year as investor confidence retracts and liquidity dries up. It only takes a glance at the S&P/ASX All Technology Index (ASX: XTX) to quantify the extent of the damage — down 40% year-to-date.

The disastrous tech sector performance carried over into Friday as the market descended a further 1.8%. In turn, investors are looking at a hellacious 6.7% fall in the benchmark index over one short trading week.

However, one ASX tech share defied the odds to secure an eight-year high today.

Which ASX tech share is rising above the rest?

Shares in Silex Systems Ltd (ASX: SLX) finished Friday 5.8% higher at $2.01. If you haven’t heard of the company before, you’d be forgiven. At a market capitalisation of $407.4 million and a relatively obscure business, the company isn’t exactly a household name.

Yet, the lack of public notoriety hasn’t stopped the Silex share price from skyrocketing over the past month. Outstripping many of its ASX tech share peers, the company has ascended more than 50% during the month gone by.

Silex Systems is a research and development company specifically focused on various applications of its own laser enrichment technology. One of those applications is the enrichment of uranium for use in nuclear energy power generation.

Given the lack of price-sensitive announcements this month, it seems possible that the heightened interest in this ASX tech share could be due to the evolving energy crisis hitting Australia. Despite the country never having a nuclear power station, interest in the alternative source has been renewed by runaway prices in electricity and gas markets.

The two major political parties are in opposition with each other over the idea of pursuing nuclear energy. However, with energy bills set to soar, the public interest in a potentially cheaper energy source is rampant.

On 2 June, Silex announced it had executed a non-binding letter of intent between its joint venture partner and Constellation Energy Generation LLC. Notably, Constellation is the largest producer of carbon-free energy in the United States, operating 23 nuclear power stations.

Investors in this ASX tech share will no doubt be watching how the energy crisis develops with a keen eye.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A group of five people dressed in black business suits scrabble in a flurry of banknotes that are whirling around them, some in the air, others on the ground as some of them bend to pick up the money.
Technology Shares

2 ASX tech shares about to go cash-flow positive

After massive interest rate rises, using your own cash to operate is so much better than borrowing to survive.

Read more »

Galan Lithium share price falling asx share price represented by a sad and flat battery
Technology Shares

Novonix share price tumbles 6% on Friday. What’s going on?

It's proving to be a rough day for this ASX 200 tech share.

Read more »

A mother and her young son are lying on the floor of their lounge sharing a tech device.
Technology Shares

Is the Megaport share price back on track after a broker upgrade?

A tech stock rally in the US and a broker upgrade helped Megaport shares to a 3% gain on Thursday.

Read more »

a graph indicating escalating results
Technology Shares

Why are ASX 200 tech shares flying higher on Thursday?

Inflation, interest rates, tech shares. What a recipe for Thursday's session.

Read more »

A happy woman sits on an outdoor deck with trees behind her and holds a credit card in one hand and her mobile phone in the other hand
Technology Shares

Why has the Block share price exploded 9% on the ASX today?

Why are Block shares booming in value this Thursday?

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Technology Shares

Why is the Novonix share price leaping 11% on Thursday?

It's proving to be a good day for the ASX 200 tech stock.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Brainchip share price powers up another 5% on Thursday

Tech shares have caught a bid today and are leading the broad indices.

Read more »

A man holds up a block from falling in a row of dominos.
Technology Shares

Why is the Block share price tumbling 5% on Wednesday?

Block shares are erasing this week's gains...

Read more »