ASX tech shares are steaming head today, despite the ASX 200 slipping into the red.
Technology shares rising include Appen Ltd (ASX: APX), NextDC Ltd (ASX: NXT), Megaport Ltd (ASX: MP1) Weebit Nano Ltd (ASX: WBT) and Xero Ltd (ASX: XRO).
Let's take a look at what is impacting ASX tech shares today.
What's going on?
Looking at the ASX tech shares in the green, there are multiple standout performers today.
- Megaport shares are soaring 9%
- Appen shares are lifting 5%
- NextDC shares are jumping 4%
- Weebit Nano shares are leaping 2%
The S&P/ASX All Technology Index (ASX: XTX) is rising 0.69%. In contrast, the S&P/ASX 200 (ASX: XJO) is 0.84% in the red.
Tech shares appear to be lifting after the Nasdaq futures rose 1.4% in early hours.
Multiple ASX tech shares lifting today are involved in artificial intelligence (AI) or data centres. For example, Appen provides technology for AI and machine learning, while Next DC operates data centres in Australia and globally. Megaport is using AI to improve cloud management and has a strong presence in the USA.
US futures lifted after AI chipmaker NVIDIA Corporation (NASDAQ: NVDA) delivered a stunning quarter-two revenue forecast as part of its first-quarter results.
As my Foolish colleague Mitch reported, Nvidia predicted it will make US$11 billion in revenue in the second quarter, nearly 53% more than market expectations.
The rising popularity of AI and the use of ChatGPT appears to be providing Nvidia with a boost. Nvidia is a major market supplier of AI server chips. Data centre revenue at Nvidia also rose to a record $4.28 billion. Total revenue for the quarter was $7.19 billion, 19% less than the previous quarter.
CEO and founder Jensen Huang said the computer industry is going through two "simultaneous transitions — accelerated computing and generative AI". He added:
A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.
Nvidia shares soared nearly 25% in after-hours trading on the NASDAQ.
Share price snapshot
Weebit Nano shares have risen 120% in a year
Appen shares, in contrast, have slid 62% in the last 52 weeks.
Megaport shares have descended 10% in the past year.
NextDC shares have climbed nearly 14% in the last year.
