Which ASX tech stocks are outperforming the US Magnificent Seven

Home-grown Aussie tech stocks have delivered impressive capital growth this year.

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ASX tech stocks have delivered impressive capital growth, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) up 57.8% in the year to date (YTD).

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) is up 10.4% (excluding dividends).

Technology is on track to be the best-performing sector among the ASX's 11 market sectors this year.

While that's impressive enough, did you know that some ASX tech stocks are outperforming the US Magnificent Seven?

a group of five people lie on the floor with their heads touching, each wearing hi tech goggles over their eyes as if in a metaverse workplace collaboration.

Image source: Getty Images

ASX tech stocks vs. Magnificent 7

When people think of the Magnificent Seven, they think about 'high tech'. These companies are either technology enterprises themselves or use advanced technology to produce their products and services.

Over the past few years, the Magnificent Seven has dominated headlines around the world due to these companies' phenomenal earnings growth and share price gains.

In 2024 alone, JP Morgan strategist Ian Hui estimates the Magnificent Seven will achieve a collective 36.2% earnings growth compared to 3.1% for the rest of the S&P 500 Index (SP: INX).

That's incredible growth for companies that are already mature and very well-established.

And look what's happened to the Magnificent Seven's share prices in the year to date (YTD).

Investors in these US stocks are likely thrilled with another year of very strong growth.

But did you know that some of our home-grown ASX tech stocks are holding their own against these global giants, at least in terms of share price growth this year?

Top stocks for share price growth in 2024

One of the top-performing ASX tech stocks of 2024 is social networking company Life360 Inc (ASX: 360).

Life360 shares are up 249.9% YTD and traded for $26.18 per share on Friday. This share price growth is stronger than that of the top performer within the Magnificent Seven over the same time period.

Also outperforming the Magnificent Seven in 2024 is Nuix Limited (ASX: NXL) shares. The Nuix share price has risen by 245.6% YTD. Nuix shares are $6.67 apiece at the time of writing.

Here are some other ASX tech stocks recording excellent share price growth in the YTD:

  • TechnologyOne Ltd (ASX: TNE) shares are 106% higher
  • Codan Ltd (ASX: CDA) shares are up 95%
  • WiseTech Global Ltd (ASX: WTC) shares are up 70%
  • Xero Ltd (ASX: XRO) shares have lifted 56%
  • Macquarie Technology Group Ltd (ASX: MAQ) shares have risen 30%
  • Nextdc Ltd (ASX: NXT) shares are up 19%.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, JPMorgan Chase, Life360, Meta Platforms, Microsoft, Nvidia, Technology One, Tesla, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nuix, Nvidia, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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