Why are ASX tech shares booming on Friday?

ASX tech shares are currently leading the entire stock market.

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published February 23, 2024 12:07 pm AEDT

It's been a fairly lucrative day for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares so far this Friday.

After a shaky week, investors will be glad to see the ASX 200 gain 0.51% (at the time of writing), putting the index at around 7,650 points. But that rise pales in comparison to what we're seeing with some ASX tech shares today thus far.

Tech stocks, to put it simply, are on fire this Friday. For one, the S&P/ASX 200 Information Technology Index (ASX: XTX) is currently the best-performing sector on the market, currently up 1.64%.

But some ASX tech stocks are doing even better than that. Take the Xero Ltd (ASX: XRO) share price. Xero shares are currently up a rosy 2.92% at $120.06 a share. Megaport Ltd (ASX: MP1) shares are up 1.6% at $13.98, while Life360 Inc (ASX: 360) stock has risen 2.65% to $8.12.

But that's nothing compared to Weebit Nano Ltd (ASX: WBT) and Block Inc (ASX: SQ2). Weebit shares have rocketed 6.5% up to $4.42, while Block has exploded 15.9% higher to $117.34.

women with a microphone is happy whilst using a computer — Image source: Getty Images

What's setting ASX tech shares on fire today?

Well, it's hard to say for sure. In some cases (well, Block's), fresh earnings results appear to be responsible. But there's little doubt that what's happened overnight on the US markets has set the tone for today's boom in the ASX tech space.

Last night, US tech stock lit up Wall Street. We saw moves like Apple gaining 1.12%, Amazon rising 3.55% and Meta Platforms shooting up 3.87%.

But the biggest mover was, once again, the NVIDIA stock price. Nvidia shares had yet another record-breaking night, smashing through to a new record high of US$785.75 after gaining a whopping 16.4%.

The catalyst for this extraordinary move was Nvidia's latest earnings report. As my Fool colleague James covered yesterday, Nvidia once again blew expectations out of the water, reporting a 265% surge in year-on-year revenues to US$22.1 billion, alongside a 769% rise in net incomes to US$12.3 billion.

Incredible numbers for what is now close to a US$2 trillion company.

This dazzling report is probably behind the sunny day that ASX tech shares are currently enjoying on the local markets. So ASX tech investors, you now know who to thank for this happy day.

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