The S&P/ASX 200 Information Technology Index (ASX: XIJ) closed 0.75% lower on Wednesday afternoon.
The index is mostly flat over the past week but it has tumbled 29% over the past year after a crash in investor confidence sent ASX tech stocks plummeting in late-2025 and into early-2026.
The good news is that it looks like many tech stocks bottomed in late-March and have started a slow but (mostly) steady upward climb. If you invested in the right ASX 200 tech stock at the right time, you could be reaping the rewards already.
Take Megaport Ltd (ASX: MP1) shares for example.
At the close of the ASX on Wednesday afternoon, Megaport shares had slumped 1.75% to $12.38.
While the slump might look disappointing on the surface, its barely dented gains that the shares have made over the past month.
After dipping to a three-year low of $6.71 in early-April, the shares have rebounded a huge 84.5%. They're now 0.5% higher for the year-to-date and practically flat on this time last year.
Image source: Getty Images
So if I invested $3,000 in Megaport shares in the dip, what is that worth today?
The steep rebound is great news for investors who were in the right place at the right time.
Those who invested $3,000 in Megaport shares in the dip would have $5,562 today.
That's an impressive gain over a short period of time.
Megaport has faced some strong headwinds this year
Megaport is a software-defined network (SDN) service provider that allows customers to connect between around 860 data centres globally.
The beaten-down tech stock was caught up in a sector-wide sell-off after investors panicked that artificial intelligence (AI) could disrupt traditional software models. Many were worried that AI tools might replace or reduce demand for subscription-based software.
The company has also been battered by high investor expectations and heavy acquisition spending, which raised concerns about near-term costs and profits.
Global factors also played their part too. Concerns about global implications following ongoing tensions in the Middle East have also spooked investors this year. In March, we saw investors turn their back on high-growth ASX 200 tech shares, like Megaport, and rotate towards more stable assets instead.
But on the flip-side, the long-term drivers of AI and tech-sector growth haven't disappeared. Technology is rapidly advancing, and businesses have ramped up their AI investments.
It looks like investors are finally coming around to the idea that AI adoption could benefit technology development.
Are the ASX 200 tech shares now a buy, sell or hold?
I think we'll see a lot more out of this ASX 200 tech stock this year, and it looks like analysts agree.
Data shows that 11 out of 15 analysts have a buy or strong buy rating on the tech shares. Another four have a hold rating.
The average $17.29 target price implies a potential 40% upside over the next 12 months. Meanwhile, the maximum $26.30 target price implies Megaport shares could soar another 112%, at the time of writing.
