3 ASX tech shares booming since Nvidia's results update

ASX tech shares with a footprint in the AI space have enjoyed a big boost from the stellar performance of US tech giant, Nvidia, last week.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published May 30, 2023 2:59 pm AEST

ASX tech shares have broadly enjoyed some tailwinds since market close last Wednesday.

While the All Ordinaries Index (ASX: XAO) is down 0.1% since then, the S&P/ASX All Technology Index (ASX: XTX) has gained 2.5%.

That's largely thanks to United States tech stock Nvidia Corporation (NASDAQ: NVDA).

It was only last Thursday that investors in ASX tech shares awoke to the remarkable share price gains posted by the AI giant on the NASDAQ during Wednesday trading in the US.

Nvidia shares closed the day up 24.3% on the back of the company's forecast of US$11 billion in revenue for the second quarter. That forecast exceeded consensus expectations by more than 50%, as Nvidia believes the AI revolution it's spearheading is only going to accelerate.

Improved sentiment around the technology sector has benefited many ASX tech shares over the past few days.

But these three have really taken off.

Man pointing at a blue rising share price graph. — Image source: Getty Images

Three ASX tech shares riding the Nvidia wave

First up we have data centre operator NextDc Ltd (ASX: NXT).

The S&P/ASX 200 Index (ASX: XJO) tech share closed on Wednesday trading for $11.69 a share. Despite slipping 1.6% today, shares are still trading for $12.75 apiece.

That puts the NextDC share price up 9.1% in the wake of Nvidia's stunning performance, with no further price sensitive news released during this period.

Enjoying an even bigger boost over the past four trading days is AI-focused Appen Ltd (ASX: APX).

The ASX tech share closed on Wednesday trading for $2.24 a share. Shares are currently trading for $2.82 apiece.

That works out to a stellar 25.9% gain in the Appen share price since the Nvidia surge.

Appen also held its annual general meeting on Friday.

And resurgent investor enthusiasm around the potential for AI stocks wasn't lost on chairman Richard Freudenstein.

"The evolution of large language models such as ChatGPT have created significant excitement around the future of AI," he said during the AGM.

Which brings us to the third ASX tech share that's boomed since the Nvidia announcement.

Namely, network services company Megaport Ltd (ASX: MP1).

The Megaport share price finished Wednesday at $5.70 per share.

In afternoon trade today, shares are swapping hands for $6.59 apiece.

Without any price-sensitive news being released, that puts Megaport shares up 15.6% since Wednesday's closing bell.

Thanks Nvidia!

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