Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) shares are jumping higher today, rebounding from multi-year lows.
At the time of writing on Tuesday afternoon, Xero shares are 7.2% higher at $75.54 a piece. The uptick is welcome news for investors after the stock crashed 33% over the year to date. It's now down 61% since the share price reached an all-time high in June last year.
WiseTech shares are also jumping 4.5% higher at the time of writing, to $38.17 a piece. WiseTech shares have also crashed 44.3% during 2026 so far, and they're 53% lower over the past 12 months.
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Why have the ASX tech shares crashed in 2026?
It's been a bloodbath for ASX tech shares over the past nine months.
Both Xero and WiseTech have faced several major headwinds, sending their share prices crashing. Even robust financial results didn't stop investors from selling up their stock.
The share price drops were part of a sector-side sell off of technology stocks following rising concerns that AI could disrupt traditional software models. Many investors were worried that AI tools might replace or reduce demand for subscription-based software.
At the same time, a sharp increase in the value of some ASX tech shares (Xero and WiseTech shares included) in 2025 also sparked concerns that the companies were overvalued and overdue a price correction.
What is driving Xero and WiseTech shares higher today?
There isn't any price-sensitive news out of either ASX tech company today to explain the latest uptick.
This implies it's due to broad-based improved sentiment around the outlook for tech stocks.
After a heavy sell-off in early 2026, Xero and WiseTech shares are currently trading at a discount. It looks like some investors are now taking advantage of the low entry point and starting to buy back into high-quality growth stocks.
Is there more upside ahead?
Analysts seem to think we could see a lot more upside from the two ASX tech shares this year.
TradingView data shows that analysts are very bullish about Xero shares. Out of 14 analysts, 13 have a buy or strong buy rating, and they tip a potential upside of up to 210% to $233.56 a piece over the next 12 months.
It's a very similar case for WiseTech shares, too. Bullish analysts mostly have a buy or strong buy rating on the stock (14 out of 16), and they tip a potential upside of up to 224% to $123.49, at the time of writing.
Hopefully, today's share price increase signals the beginning of a rebound for Xero and WiseTech shares.
