This ASX technology stock is up 80% YTD and is set to keep rising

This tech stock could be set to benefit from a data centre boom.

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Key points

  • Sks Technologies Group (ASX: SKS) has seen its share price increase over 80% year-to-date.
  • The company is poised for further growth due to potential contracts from a significant pipeline of data centre projects in Victoria, valued between $18–28 billion.
  • Morgans has upgraded its price target for SKS to $3.80, indicating an anticipated upside of approximately 15.50%.

There is often a misconception that ASX technology stocks aren't a strong investment option compared to US or Asian tech stocks. 

It is true the ASX is dominated by financial companies (like the big four banks) and mining/resources companies. However the growth-oriented tech space offers investors plenty of opportunities.

One ASX technology stock that has provided market beating returns in 2025 is SKS Technologies Group Ltd (ASX: SKS). 

It provides audiovisual products & solutions and electrical and communications cabling for the commercial, retail, health, defense and education market.

At the start of the year, this ASX technology stock was trading for roughly $1.81 and today, shares are trading for approximately $3.29 each. 

That means its share price has risen more than 80% so far in 2025. 

Meanwhile, S&P/ASX 200 Index (ASX: XJO) has risen by just 7% year to date.

The team at Morgans currently have an accumulate rating on this technology stock. It also just upgraded its price target, suggesting the growth is set to continue. 

Strong pipeline

It seems the team at Morgans is optimistic this ASX technology stock is set to benefit from a boom in data centre construction in Victoria (driven by cloud and AI demand). 

Morgans says there's about $18–28 billion worth of data centre projects planned in Victoria, creating strong demand for electrical work. 

The broker estimates this could mean around $3.6 billion in potential contracts that companies like SKS could compete for over the next few years.

This in our view provides strong visibility over the outlook for the company and the sector over the coming years.

Earlier this year, SKS Technologies Group also expanded its Northern Territory operations. It secured a number of project wins in different market sectors totalling in excess of $21 million.

Price target upgrade

The team at Morgans has reiterated its accumulate rating on this ASX technology stock. 

It has upgraded its price target to $3.80 (previously $3.15). 

Today, SKS shares are changing hands for approximately $3.29 each. 

Based on the price target of $3.80, Morgans sees an upside of approximately 15.50%. 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sks Technologies Group. 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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