The tech sector has been a difficult place to invest in 2026.
Due to concerns over artificial intelligence (AI) disruption, ASX software shares have been sold off.
Bell Potter has been looking at the sector and has given its take on recent selling.
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What is the broker saying about AI and ASX tech shares?
Commenting on what has caused the selling, the broker said:
The recent market retreat was partly driven by Anthropic's release of various specialised plug-ins for its agentic AI platform. By introducing tools for legal, sales, finance, and analytics applications, Anthropic has heightened fears that AI-native models will fundamentally disrupt or replace incumbent software providers.
But don't worry, because it isn't the end of ASX tech shares. Far from it, according to Bell Potter. It adds:
The recent software sell off was indiscriminate, but we see this as overblown and do not believe AI will displace every company. Instead, we see an 'AI-augmented' future for many software companies. By being selective, investors can now find high-quality companies trading at attractive valuations.
Which shares should you buy?
While the broker's top pick globally is Microsoft (NASDAQ: MSFT), it has named its preference on the ASX boards. That tech share is WiseTech Global Ltd (ASX: WTC).
Rather than replacing the logistics solutions technology company, Bell Potter believes AI could enhance its platform. It said:
On the ASX, WiseTech (WTC.AX) remains our analysts' top pick. Trading at a 12-month forward P/E of 37x, the stock appears undervalued relative to its 30% earnings growth and 10-year historical average of 75x. While AI disruption remains a risk, WTC possesses many of the defensive attributes identified above; in fact, we believe AI could actually enhance the power of WTC's software rather than displace it.
Bell Potter currently has a buy rating and $87.50 price target on WiseTech's shares.
Based on its current share price of $50.94, this implies potential upside of 72% for investors over the next 12 months.
Anything else?
It is also worth noting that in a separate note, the broker has named another ASX tech share as a buy.
This morning, Bell Potter has retained its buy rating on Catapult Sports Ltd (ASX: CAT) shares with a trimmed price target of $5.50. This implies potential upside of 55% for investors from current levels. It said:
Catapult has a March year end so will not report its next result till May and we do not expect much if any news flow between now and then. There is some potential for Catapult to be removed from the S&P/ASX 200 Index at the next rebalance in March – given the recent price fall and despite the equity raising in November – after only being included in September last year.
This potential removal has perhaps also contributed to the fall in the share price. In its favour, however, Catapult is still one of the few good quality tech stocks in the mid cap space – even if it gets removed from the 200 but stays in the 300 – and so any rebound in the sector will likely see Catapult move in tandem.
