Top 5 ASX 200 tech shares for growth in 2025

It was a rollercoaster year for ASX 200 tech shares, with fears of an AI bubble sending them into a bear market.

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Key points

  • Tech Sector Performance and Key Winners: In a challenging year for ASX 200 tech shares, Codan led with a 77% share price increase, followed by Megaport at 65%, Life360 at 49%, Data#3 at 41%, and Catapult Sports at 12%, despite the overall S&P/ASX 200 Information Technology Index dropping 21.04%.
  • Broker Ratings and Price Targets: Codan holds a target range of $32.70 to $37.54 from Petra Capital and Canaccord Genuity. Megaport receives a high of $21.70 from Macquarie, while Life360 enjoys targets up to $58.50 from Morgan Stanley. Data#3 sees a revised target from Macquarie at $9.85, with buy positions supported by Morgan Stanley. Catapult has a target range of $6.25 to $6.50 from Morgans and Bell Potter.
  • Future Outlook: Analysts show varied optimism for 2026, with several tech stocks maintaining buy and outperform ratings, indicating potential recovery opportunities despite broader sector challenges faced in 2025.

It was a rollercoaster year for S&P/ASX 200 Index (ASX: XJO) tech shares in 2025.

Fear of a potential artificial intelligence (AI) bubble contributed to tech stocks entering bear market territory in November.

A bear market is one in which shares drop by 20% or more from their most recent peak.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) finished the year down 21.04%.

The total return, including dividends, was 20.80%.

This made ASX 200 tech shares the second-worst performer of the 11 market sectors for 2025.

Tech shares vastly underperformed the S&P/ASX 200 Index (ASX: XJO), which rose 6.8% and delivered total returns of 10.32%.

Amid the carnage, which ASX 200 tech shares came out best for capital gains?

And what ratings have these tech shares attracted from analysts for 2026?

Let's find out.

Which ASX 200 tech shares triumphed amid sector ruin?

1. Codan Ltd (ASX: CDA)

Electronics solutions provider Codan delivered the best capital growth among ASX 200 tech shares last year.

The Codan share price soared 77% to finish the year at $28.43.

Codan designs and manufactures electronics solutions for government, corporate, NGO, and consumer clients worldwide.

Petra Capital has a hold rating on Codan with a 12-month share price target of $32.70.

Canaccord Genuity has a buy rating with a $37.54 target.

2. Megaport Ltd (ASX: MP1)

The Megaport share price ripped 65% to $12.17 in 2025.

Megaport provides cloud and data centre connectivity services through a global network-as-a-service (NaaS) platform.

Macquarie has an outperform rating on Megaport with a share price target of $21.70.

Citi has a buy rating and a target of $16.30.

3. Life360 Inc (ASX: 360)

The Life360 share price leapt 49% to close at $33.53 on 31 December.

Life360 owns the popular family location app.

Bell Potter has a buy rating and a $52.50 price target on Life360 shares.

Morgan Stanley has an overweight rating and $58.50 price target.

4. Data#3 Ltd (ASX: DTL)

Shares in this IT services provider ascended 41% to close at $9.01 apiece on 31 December.

Macquarie has downgraded its rating on this ASX 200 tech share to neutral but lifted its target from $9.15 to $9.85.

Morgan Stanley gives Data#3 shares a buy rating with a $9.50 target.

5. Catapult Sports Ltd (ASX: CAT)

The Catapult Sports share price lifted 12% to finish the year at $4.15.

Bell Potter has a buy rating on Catapult shares with a 12-month target of $6.50.

Morgans also gives the sports performance analytics company a buy rating with a target of $6.25.

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 Catapult Sports, Life360, Macquarie Group, and Megaport. The Motley Fool Australia has positions in and has recommended Catapult Sports, Life360, and Macquarie 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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