Market sentiment can change far faster than fundamentals.
Over the past year, a broad selloff across technology stocks has pushed several high-quality ASX growth stocks to 52-week lows, despite little evidence that their long-term opportunities have deteriorated.
In some cases, share prices are down around 50% from their highs, creating what look like coiled springs just waiting for sentiment to turn.
Two ASX growth stocks that stand out in that respect are named below:
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WiseTech Global Ltd (ASX: WTC)
WiseTech Global looks like a classic example of a market overreaction.
The company provides mission-critical software that sits at the heart of global freight forwarding and logistics operations. Its platform is deeply embedded in customer workflows, handling complex regulatory, operational, and data requirements across borders.
That complexity is a key part of the investment case. Unlike simpler software tools, WiseTech's systems are not easily replaced or replicated. This is why concerns around generative AI lowering barriers to entry have had little impact on perceptions of WiseTech's competitive position. The software is not about simple automation, but about orchestrating highly complex global supply chains.
After hitting a 52-week low and falling sharply from its highs, WiseTech shares appear to be pricing in a slowdown that does not fully reflect the business's long-term growth runway. If sentiment toward technology improves, WiseTech's earnings leverage and recurring revenue profile could see this ASX growth stock rebound strongly.
Morgans has a buy rating and $112.50 price target on its shares. This suggests that its shares could rise 80% from current levels.
Xero Ltd (ASX: XRO)
Xero has also been caught in the tech sector downdraft.
The company's cloud accounting platform is core infrastructure for millions of small businesses and accounting firms globally. Once adopted, it becomes deeply embedded in daily operations, supporting strong retention and recurring subscription revenue.
However, Xero is one of several software stocks that have been hit hard by concerns about generative AI potentially lowering barriers to entry in the future. The market has questioned whether new tools could commoditise parts of the accounting software landscape.
What this overlooks is Xero's scale, ecosystem, and integration depth. Accounting software is not just about data entry. It is about compliance, reporting, workflows, and trust. These are areas where incumbents with established platforms and partner networks still hold significant advantages.
With Xero shares now trading near 52-week lows and well below previous highs, even modest improvements in tech sentiment or clarity around AI's role could act as a catalyst for a sharp re-rating.
Macquarie has an outperform rating and $230.30 price target on this ASX growth stock. This implies potential upside of 130% from current levels.
