3 reasons to buy this booming ASX All Ords tech stock today

A leading broker forecasts more gains to come from this surging ASX All Ords tech stock.

| More on:
A man in a business suit and tie places three wooden blocks with the numbers 1, 2, and 3 on them on top of each other.

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

The All Ordinaries Index (ASX: XAO) is up 9.5% over a year, but this ASX All Ords tech stock has left those gains wanting.

The fast-rising stock in question is SKS Technologies Group Ltd (ASX: SKS).

If you're not familiar with SKS, the company designs and installs electrical, audiovisual, and communications networking systems into the data centre, government, and corporate sectors.

SKS shares are flat today at time of writing, changing hands for $2.27 apiece. That sees the share price up an impressive 35.9% since this time last year.

And according to the analysts at Wilsons Advisory, the ASX All Ords tech stock is well-placed to keep marching higher into 2026.

"SKS is experiencing strong growth in Work-in-Hand figures, which have been driven by meaningful data-centre driven contract wins," Wilsons noted.

"We see solid short, medium and potentially long-term demand for SKS' expertise as the digital infrastructure thematic not only grows, but grows non-linearly over our forecast period," the broker added.

Should I buy the ASX All Ords tech stock today?

There are three reasons you may want to buy SKS shares today.

The first is the ASX All Ords tech stock's strong connection to AI-fuelled data centre demand growth.

"What specifically positions SKS well in the short-term is its strong Victoria presence, which at the moment is the key activity hub for data centre demand," Wilsons said.

The broker added that SKS has "strong relationships with a number of leading data centre operators", which it said include the likes of NextDc Ltd (ASX: NXT), Amazon.com, Inc. (NASDAQ: AMZN), and Microsoft Corp (NASDAQ: MSFT).

According to Wilsons:

Migration to the 'Cloud' continues apace, and the non-linear investment in AI sector is an accelerant for Cloud, as Enterprises and Governments alike get 'digitally fit' to be able to participate in the benefits and efficiencies from AI…

Demand for data centre capacity has never been greater. And these enormous capex programs are lifting the entire digital infrastructure ecosystem, globally.

The second reason you may want to add SKS to your ASX portfolio is the company's team.

"Regarding people, SKS's brand positions them uniquely to attract well-credentialed staff," Wilsons said.

And the third reason Wilsons is bullish on this ASX All Ords tech stock is that Australia's enviable geopolitical position bodes well for long-term infrastructure investment

The broker noted:

The bi-partisan support for the Diffusion Act limiting the export of high-performance chips globally saw Australia and NZ listed as 2 of only 5 APAC countries (alongside Japan, South Korea and Taiwan) as being deemed Tier 1 partners of the US.

Australia's Tier 1 status, 'safe' subsea cable network makes Australia an incredibly favourable location for large scale, long term digital infrastructure investment, of which SKS stands to be a genuine beneficiary.

Wilsons has an overweight weighting on SKS shares with a $2.36 12-month price target. That represents a potential upside of 4% from current levels.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bernd Struben 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 Amazon and Microsoft. 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 recommended Amazon, Microsoft, and Sks Technologies Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

White declining arrow on a blue graph with an animated man representing a falling share price.
Materials Shares

Experts call time on these rip-snorting ASX 200 mining shares

These 2 ASX 200 mining stocks have risen by 160% and 230%, respectively, over the past 12 months.

Read more »

Two people comparing and analysing material.
Broker Notes

Buy, hold, sell: Netwealth, Santos, and South32 shares

Morgans has given its verdict on these shares following updates.

Read more »

Business man at desk looking out window with his arms behind his head at a view of the city and stock trends overlay.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Three smiling corporate people examine a model of a new building complex.
Broker Notes

Broker says this ASX All Ords stock could rise 15%

Bell Potter thinks investors should be buying this growing company's shares.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Broker Notes

Why Lynas shares could crash 33%

Bell Potter believes this rare earths stock could lose a third of its value.

Read more »

Three girls compete in a race, running fast around an athletic track.
Broker Notes

Two ASX 200 stocks to buy after crashing 6-9% yesterday

Bell Potter is tipping an 18-40% resurgence for these stocks.

Read more »

A woman looks quizzical as she looks at a graph of the share market.
Broker Notes

Looking for double-digit returns? Check out RBC Capital Markets' picks ahead of reporting season

These shares could deliver strong upside.

Read more »

Man controlling a drone in the sky.
Broker Notes

ASX defence stocks to target according to Bell Potter

The bull run might not be finished yet for these two companies.

Read more »