ASX reporting season recently finished. This gave analysts the chance to update their views on businesses, including share price targets.

I'm going to talk about two businesses that analysts suggest could deliver returns of at least 40% or more in the next 12 months.

Macquarie Technology Group Ltd (ASX: MAQ)

This ASX share describes itself as an Australian data centre, cloud, cybersecurity and telecom operator for government and mid-to-large business customers. It aims to provide the best customer services in Australia.

According to CMC Markets, there have been five ratings on the business within the last three months, with four of those being a buy. The average price target is $83.24, suggesting a possible rise of 50% over the next year.

One of the company's core attractions is that how 95% of its revenue has come from contracted monthly recurring revenue.

The ASX share is heavily investing to unlock future earnings – in FY26 its capital expenditure was $230.5 million, including $186.2 for IC3 SuperWest). In the coming years, its earnings should grow as a result of these investments.

Despite the investing, its underlying operating profit (EBITDA) grew by 2% to $115.9 million during FY26. The EBITDA is expected to rise again, though modestly, in FY27 with IC3 SuperWest phase 1 revenue starting in the second half of FY27.

Mader Group Ltd (ASX: MAD)

The other ASX share I'll highlight is Mader. It describes itself as a global leader in the provision of specialist technical services across multiple industries.

Its labour market platform allows it to connect a global network of over 520 customers to a skilled in-house workforce of approximately 4,500 personnel on flexible, fit for purpose and cost-effective terms.

According to CMC Invest, there has been three analyst ratings on the business within the last three months, with all of those ratings being a buy. The average price target of those three ratings is $8.86, suggesting a possible rise of 42% over the next 12 months.

FY26 was a solid year of growth for the business, with 15% revenue growth to $1 billion and net profit after tax (NPAT) growth of 15% to $65.4 million. Plus, its balance sheet's net debt improved by $44 million, resulting in a net cash position of $35.7 million.

In FY27, the business expects to grow by at least 13% to $1.13 billion, with net profit of at least $72.5 million (that's 11% growth).

Double-digit growth is a strong level of expansion given the current economic climate.

The post 2 ASX shares tipped to grow 40% or more in the next 12 months appeared first on The Motley Fool Australia.

I've selected two broker reports published in the past week which profile companies the brokers think will perform well following their recent results announcements.

Let's see who they like.

Nextdc Ltd (ASX: NXT)

This data centre operator reported net revenue of $405 million for FY26, up 16%, with net profit improving from a $60.5 million loss to an $82.1 million profit.

The company spent $3.39 billion on capital expenditure in FY26, and expects to follow that with $2.7-$3 billion in spending this year, "reflecting additional land acquisitions and accelerated delivery of contracted capacity''.

Nextdc Chief Executive Officer Craig Scroggie said of the results:

FY26 was the largest contracting year in Nextdc's history. Contracted utilisation tripled to 740.1MW on a pro forma basis, and we exceeded guidance on both net revenue and Underlying EBITDA. Our Forward Order Book of 565MW is now more than 3.2 times our billing utilisation, and our focus is on delivering that capacity and converting it into revenue and cash inflow. Since August 2025 we have also raised $9.75 billion of new capital, taking pro forma liquidity from $5.5 billion to $8.7 billion and providing significant capital to deliver the contracted capacity and grow our development pipeline.

Nextdc is expecting to grow its net revenue by 52%-58% this year and underlying EBITDA by 55%-65%.

UBS said the profit result was better than expectations, and they expected large consensus upgrades to earnings across FY27-FY29.

UBS has a price target on Nextdc of $22.55, well above the current share price of $13.99.

Macquarie Technology Ltd (ASX: MAQ)

This data centre operator reported its twelfth straight year of EBITDA growth, posting FY26 earnings of $115.9 million, up 2%.

During the year the Federal Government also invested $200 million into Macquarie Technology, ''via the National Reconstruction Fund Corporation (NRFC) – a sovereign investment fund to support nationally significant technological innovation, digital infrastructure, defence and national security''.

After the end of the financial year the company also completed the acquisition of a 34,200sqm site in Macquarie Park, which underpins a proposed 200MW Macquarie Engineering & Technology Campus.

On the outlook for the current year the company is expecting modest growth in EBITDA.

Broker Macquarie said the FY26 result was largely in line with expectations, while the outlook was slightly softer than expected.

Macquarie has a price target of $87.80 on Macquarie Technology shares, compared to $57.27 currently.

The post 2 ASX data centre stocks rated a buy appeared first on The Motley Fool Australia.

What did Macquarie Technology report?

• EBITDA rose 2% to $115.9 million for FY26, marking twelve consecutive years of growth
• Operating cash flow reached $94.6 million with cash conversion of 108%
• 95% of revenue came from contracted monthly recurring revenue streams
• Significant investment in data centre infrastructure, with growth capex of $193.3 million
• Undrawn debt facility of $496.5 million and $100 million Hybrid Securities Series 2 available
• Australian Government invested $200 million from the National Reconstruction Fund Corporation

What else do investors need to know?

Macquarie Technology accelerated development of its IC3 SuperWest data centre and completed the acquisition of a new 34,200sqm site at Macquarie Park, intended for a 200MW engineering and technology campus (METC). Construction on IC3 SuperWest remains on budget and on schedule, with Stage 1 expected to complete by September 2026.

The company's balance sheet was further strengthened by government investment, and its recurring revenue mix remains robust. Ongoing strategic investments are focused on supporting cloud, AI, and cyber security demand as well as enhancing sustainable infrastructure, including advanced cooling technologies with limited water use.

What did Macquarie Technology management say?

Chief Executive David Tudehope said:

Our capital structure has become increasingly diversified through the introduction of the Australian Government's NRFC as a strategic investor. Combined with our existing debt facilities, this long-term source of capital provides additional financial flexibility to support the development of sovereign secure digital infrastructure, cyber security services and future growth initiative.

What's next for Macquarie Technology?

The company expects modest FY27 EBITDA growth, assuming revenue from IC3 SuperWest Phase 1 begins in the second half. Investment will ramp up in people, AI-ready infrastructure, and product development to support anticipated growth across cyber security, cloud, and networking.

Macquarie Technology's focus remains on expanding capacity, finalising customer agreements for major data centre projects, and supporting innovation in AI and cloud for business and government clients. The METC project is progressing, with community features and academic partnerships planned, although major construction is still subject to approvals.

Macquarie Technology share price snapshot

Over the past 12 months, Macquarie Technology shares have declined 9%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Macquarie Technology: Twelve years of EBITDA growth appeared first on The Motley Fool Australia.

Our local Aussie index is dominated by banks, miners and supermarkets.

But that does not mean there are no opportunities. What it does mean is that we need to look at the plumbing and the applications driving AI rather than the AI chips themselves.

The Motley Fool has previously covered how to invest in artificial intelligence locally.

Here are three ASX companies I think give you strong exposure to the AI theme.

Why ASX AI stocks look different to Wall Street

Australia does not manufacture semiconductors.

What we do have is land, power and regulated demand for sovereign data storage, and that has turned the local artificial intelligence trade into an infrastructure trade first and a software trade second.

NextDC: the purest infrastructure play

NextDC Ltd (ASX: NXT) builds and operates the data centres that artificial intelligence workloads run inside.

The company's scale is now hard to ignore.

In an April update, contracted utilisation reached 667MW as at 31 March 2026, a 60% increase, while the forward order book jumped 83% to 544MW.

Contracted earnings from existing agreements now exceed $1 billion.

Chief executive Craig Scroggie did not undersell the shift:

The scale of this increase in contracted utilisation and the resulting uplift in the Company's pro forma Forward Order Book are unprecedented, underscoring the record levels of demand we continue to experience.

The catch is cost.

NextDC guided to FY26 capital expenditure of $2.7 billion to $3.0 billion with roughly $5 billion forecast for FY27, and it funded part of that through a $1.5 billion entitlement offer priced at $12.70 per share.

Investors are still debating whether the AI boom is only getting started for NextDC shares.

The company reports its FY26 result on 27 August.

Pro Medicus: one of the few profitable AI stocks

Pro Medicus Ltd (ASX: PME) sells medical imaging software to United States hospital networks.

Its FY26 result delivered revenue of $261.7 million, up 22.9%, while underlying net profit after tax rose 24.1% to $144.7 million.

The underlying earnings before interest and tax margin reached 74.9%.

Dividends climbed 25.5% to 69 cents per share fully franked, and the company signed 10 new contracts worth at least $407 million.

Chief executive Sam Hupert framed the AI opportunity in terms of access:

We are the gatekeeper for image-based AI to now 11% of the market in the U.S. and growing.

That gatekeeper position represents the premium the market pays for.

Shares jumped more than 10% on results day, although they remain down roughly 11% for the calendar year.

Macquarie Technology: the small-cap option

Macquarie Technology Group Ltd (ASX: MAQ) runs data centres, cloud and cybersecurity services for government and corporate customers.

The company is a fraction of NextDC's size, with a market capitalisation of roughly $1.6 billion.

The company delivered its 22nd consecutive half of EBITDA growth in the first half of FY26, with EBITDA of $57.9 million and full-year guidance of $114 million to $117 million.

Its IC3 Super West facility in Sydney is the real prize.

Phase one delivers 6MW, with a pathway to 19MW and an option over a Sydney campus site above 150MW.

Macquarie Technology also reports on 27 August.

The risks with ASX AI stocks

None of these businesses is cheap.

Pro Medicus trades on a price-to-earnings ratio near 88, which leaves no margin at all for a missed contract or a slower implementation schedule.

NextDC has never reported a statutory profit, and its capital intensity means further raisings are possible.

Macquarie Technology is small, thinly traded and spending heavily ahead of revenue.

Buying AI stocks means accepting that the market has already priced in a great deal of future growth.

Foolish takeaway

I would not put an entire portfolio into this single theme.

But a modest allocation across infrastructure and applications gives you two very different ways to win, because the companies building the capacity and the companies monetising it rarely peak at the same moment.

NextDC and Macquarie Technology sell the shovels.

Pro Medicus sells the software that makes the data useful.

For investors who want exposure to AI stocks without leaving the ASX, that is where I would start.

The post Investing in AI stocks on the ASX? Here's what you should buy appeared first on The Motley Fool Australia.

That scarcity could create opportunities for investors willing to look beyond the obvious names. A handful of smaller ASX AI companies offer exposure to the long-term AI theme, with potential catalysts that could drive significant growth if execution improves.

Two names attracting increasing attention are Appen Ltd (ASX: APX) and Macquarie Technology Group Ltd (ASX: MAQ).

Appen: A risky AI turnaround play

Appen sits directly inside the AI ecosystem. The company provides training data used by many artificial intelligence models, helping businesses build and improve machine learning systems.

However, the journey has been far from smooth. The ASX AI share surged 71% to an annual high of $1.90 in January after a strong quarterly update boosted investor confidence. That optimism faded quickly after the company's next update in April.

While revenue increased 9% to $54.8 million, investors were disappointed by the company's weak profitability. Appen Global's performance was a particular concern, with revenue falling 37% to $19.9 million.

The result triggered a sharp sell-off, sending shares down around 30%. Since then, the recovery has failed to materialise, with Appen shares trading near $0.86 and down around 30% over the past year.

Management has since reaffirmed FY26 revenue guidance of between $270 million and $300 million, ahead of FY25 revenue of $231 million. The key question now is whether demand for AI training data can translate into stronger earnings.

If Appen can prove its turnaround is working, secure new partnerships, and return to sustainable growth, the market could quickly reassess the company's value.

The next major test arrives with its first-half FY26 results in late August.

Macquarie Technology: The infrastructure behind AI

While many investors focus on AI software companies, Macquarie Technology is targeting the infrastructure powering the revolution.

The company operates data centres, cloud services, cybersecurity solutions, and sovereign hosting platforms — all areas expected to benefit from rising AI adoption.

In March, Macquarie Technology secured a $200 million hybrid investment from the government-backed National Reconstruction Fund Corporation.

The funding will support the expansion of sovereign cloud, cybersecurity, and AI infrastructure for government agencies, defence organisations, and critical industries.

Unlike many speculative AI plays, Macquarie Technology already has a profitable business. The ASX AI share has delivered 20 consecutive half-years of operating income growth, demonstrating consistent execution.

As demand for data centre capacity continues rising, additional infrastructure coming online could provide a significant earnings boost.

If investors begin valuing Macquarie Technology closer to established data centre operators such as NextDC Ltd (ASX: NXT), the shares could have further upside.

Foolish takeaway

AI investing is still dominated by global giants, but opportunities exist across the ASX.

Appen offers a higher-risk turnaround opportunity tied directly to AI model development, while Macquarie Technology provides exposure to the essential infrastructure supporting the AI boom.

Neither ASX AI share is guaranteed to succeed, but both show why investors shouldn't overlook the smaller companies helping build the next generation of artificial intelligence.

The post These overlooked ASX AI shares could be tomorrow's winners appeared first on The Motley Fool Australia.

It was the largest IPO in stock market history. And it is just the beginning.

Anthropic is targeting a December 2026 public debut at a forecast first-day market cap of approximately US$1.1 trillion, according to the most current forecasts.

OpenAI, which filed its own confidential S-1 earlier this month, is expected to follow in early 2027 at a comparable valuation.

Together, SpaceX, Anthropic, and OpenAI represent a combined public market value approaching US$4 trillion.

For Australian investors who cannot buy any of these stocks on the ASX, the question is what it means for the companies they can buy.

Why these IPOs matter for ASX investors

The most important consequence of trillion-dollar AI IPOs is not the immediate share price movement in SPCX, Anthropic, or OpenAI.

It is the reallocation of institutional capital that follows.

When capital flows into public AI companies at these valuations, attention and money flow toward every company in the AI infrastructure supply chain, including those listed on the ASX.

The AI thesis is being publicly validated at a scale never seen before.

Three ASX stocks sit directly in the path of that validation.

Betashares Space Industry ETF (ASX: RCKT)

The Betashares Space Industry ETF is already living proof of the thesis.

The fund launched at $14 per unit on 12 May 2026, well before SpaceX listed. It surged approximately 30% in the weeks leading up to the SpaceX IPO as anticipation built.

This served to demonstrate how powerfully public AI IPOs move adjacent listed markets.

RCKT holds 28 companies across the global space economy, with Rocket Lab and AST SpaceMobile as its two largest positions.

SpaceX itself will take time to enter the index, but the attention the listing generates flows directly into RCKT's holdings.

As Anthropic and OpenAI approach their own listings later this year and in 2027, the same dynamic will play out across AI infrastructure stocks globally.

For ASX investors, RCKT captures that excitement in a single trade.

NextDC Ltd (ASX: NXT)

NextDC is Australia's largest independent data centre operator and has the most direct relationship with the AI IPO wave of any ASX company.

OpenAI is NextDC's foundational customer for its US$7 billion AI data centre campus in Western Sydney.

When OpenAI lists publicly at close to US$1 trillion, that customer relationship may be permanently reframed.

NextDC has already raised its FY 2026 capital expenditure guidance to between $2.7 billion and $3.0 billion as contracted utilisation surged 60% in the March quarter.

Morgans carries a buy rating on NextDC with a $19 price target, implying upside of approximately 36% from current levels.

Macquarie Technology Group Ltd (ASX: MAQ)

Macquarie Technology Group plays a different but equally important role.

Anthropic's Claude platform is already being deployed by Australian government agencies and critical infrastructure operators who cannot use offshore AI infrastructure.

Anthropic's annualised revenue reportedly crossed $47 billion in May 2026, and the company is on track to post its first operating profit in Q2 2026.

As Anthropic's public listing raises its enterprise profile globally, the demand for sovereign Australian AI infrastructure will only grow.

Macquarie Technology is the primary beneficiary of that demand, backed by a $200 million National Reconstruction Fund investment and 20 consecutive half years of operating income growth.

Canaccord Genuity upgraded MAQ shares following the NRF investment, predicting significant upside from current levels.

The risks

History offers a clear warning about mega-cap IPOs.

According to Professor Jay Ritter's updated long-run IPO statistics, the average newly listed company underperforms its peers by approximately 8% per year over the five years following its debut.

If Anthropic or OpenAI disappoint in their early trading sessions, the repricing could weigh on AI infrastructure stocks.

Foolish Takeaway

SpaceX has listed. Anthropic targets December. OpenAI follows in 2027.

For ASX investors seeking exposure to the AI IPO wave without buying US-listed stocks, RCKT, NXT, and MAQ each offers a distinct way to participate.

The post After SpaceX, the Anthropic and OpenAI IPOs are next. Here is what ASX AI investors need to know appeared first on The Motley Fool Australia.

SpaceX (NASDAQ: SPCX) prices its shares tomorrow, 11 June 2026, at US$135 per share, implying a valuation of approximately US$1.75 trillion, and begins trading on the Nasdaq under the ticker SPCX on Thursday, 12 June.

That would make it the largest IPO in stock market history, surpassing Saudi Aramco's US$1.7 trillion listing in 2019.

Anthropic, the AI company behind the Claude platform, has filed confidentially with the SEC at a reported valuation of approximately US$900 billion, targeting a public debut as soon as October.

And just this week, OpenAI also filed confidentially for an IPO, with the combined three-company valuation potentially exceeding US$3.6 trillion.

None of these companies will be available on the ASX. But all three will reshape how the market thinks about AI stocks, including the ones that are available here.

Why these IPOs change everything for ASX AI shares

For the first time, the world's most important AI infrastructure companies are being given public market price tags.

That is important for ASX investors for two reasons.

First, successful listings at these valuations validate the entire AI investment thesis at a scale that no private funding round has ever achieved.

Second, the capital flows these IPOs generate will not stay in the United States.

Institutional investors across Asia-Pacific, including Australia's own superannuation funds, will look to rebalance AI exposure following the listings.

This rebalancing will direct fresh attention and capital toward ASX-listed AI infrastructure plays.

Three in particular stand out.

Betashares Space Industry ETF (ASX: RCKT)

The most direct ASX beneficiary of the SpaceX listing is the Betashares Space Industry ETF, which launched on 12 May 2026.

The ETF has had a wild ride as SpaceX anticipation built throughout the month.

RCKT tracks the Solactive Space Industry Index, holding 28 companies across the global space economy with Rocket Lab and AST SpaceMobile as its two largest positions.

SpaceX will need to meet index inclusion criteria before RCKT can formally hold it, a process that typically takes several months.

In the meantime, RCKT remains the clearest and most liquid ASX proxy for investor excitement around the space economy that SpaceX is bringing.

NextDC Ltd (ASX: NXT)

NextDC is Australia's largest independent data centre operator.

The company is building a $7 billion AI data centre campus in Western Sydney with OpenAI as its foundational customer.

Now that OpenAI has filed for its own IPO, that customer relationship takes on new significance.

For context, Anthropic is paying SpaceX's xAI division US$1.25 billion per month for exclusive compute access. This illustrates just how voracious AI companies' appetite for data centre capacity has become.

Every dollar an AI company spends on compute creates demand for the infrastructure NextDC provides.

Perhaps as a result, NextDC raised its FY 2026 capital expenditure guidance to between $2.7 billion and $3.0 billion as contracted utilisation surged 60% in the March quarter.

Macquarie Technology Group Ltd (ASX: MAQ)

Macquarie Technology plays a different but equally important role in the AI IPO story.

Anthropic's Claude platform is increasingly being adopted by Australian government agencies, financial institutions, and critical infrastructure operators.

Many of these organisations cannot use offshore AI infrastructure for data sovereignty reasons.

This has created a captive market for Macquarie Technology, which provides sovereign cloud and AI infrastructure backed by a $200 million National Reconstruction Fund investment.

As Anthropic's public listing raises its enterprise profile globally, the demand for sovereign Australian AI infrastructure will only grow.

The risk worth acknowledging for ASX AI shares

History offers a warning.

Of the five largest IPOs in modern history, only Visa significantly outperformed markets after listing.

On the other end, Saudi Aramco still trades below its issue price.

If SpaceX disappoints in its first weeks of trading, the repricing conversation that follows would weigh on AI stocks globally, including the RCKT ETF, NextDC, and Macquarie Technology.

Foolish Takeaway

SpaceX prices tomorrow, Anthropic is months away from listing, and OpenAI just filed.

For ASX investors who want exposure to the AI IPO wave without buying US-listed stocks, the RCKT ETF, NextDC, and Macquarie Technology offer three unique ways to participate.

The post The SpaceX and Anthropic IPOs will massively impact ASX AI shares appeared first on The Motley Fool Australia.

Anthropic, the San Francisco-based AI company behind the Claude platform, filed confidentially with the SEC on 2 June 2026 at a reported valuation of approximately US$950 billion to US$1 trillion.

That would make it, alongside the SpaceX IPO already in progress, one of the two largest stock market debuts in history.

For Australian investors, Anthropic will not be available on the ASX.

However, two ASX-listed companies are already directly embedded in the infrastructure that Anthropic depends on to power its AI models.

Both stand to benefit materially as Anthropic's public debut draws global attention and capital to the AI infrastructure theme.

What Anthropic actually does

Anthropic was founded in 2021 by former OpenAI employees, including Dario Amodei and Daniela Amodei.

The company competes directly with OpenAI's ChatGPT and Google's Gemini, and its Claude platform holds approximately 5% of the chatbot market, according to eMarketer.

More importantly for the investment case, Anthropic's annualised revenue reportedly crossed US$44 billion as of May 2026. Furthermore, the company is on track to post its first-ever operating profit in Q2 2026.

As more and more capital flows into AI themes, the infrastructure layer beneath the AI stack tends to be a direct beneficiary.

NextDC Ltd (ASX: NXT)

NextDC is Australia's largest independent data centre operator.

The company is building a massive $7 billion AI data centre campus in Western Sydney, with OpenAI signed on as its foundational customer.

As Anthropic scales its operations and increases its compute consumption to compete with OpenAI's growing infrastructure, Australian data centre capacity becomes an increasingly critical resource.

NextDC has been growing at an extraordinary pace to meet that demand.

In the first half of FY 2026, NextDC raised its FY 2026 capital expenditure guidance to between $2.7 billion and $3.0 billion. Contracted utilisation surged 60% to 667MW in the March quarter alone.

The Anthropic IPO adds a further dimension to that thesis: as AI company valuations are revalidated at trillion-dollar levels, the infrastructure enabling those companies becomes even more strategically important and even harder to replicate.

Macquarie Technology Group Ltd (ASX: MAQ)

Macquarie Technology plays a different but equally important role in the Australian AI infrastructure stack.

Where NextDC focuses on hyperscale data centre capacity for large cloud and AI customers, Macquarie Technology specialises in sovereign cloud and cybersecurity infrastructure for Australian government agencies and critical industries.

That is a market where Anthropic's Claude platform and similar AI systems are being deployed. The strict requirements within these deployments are that data must remain onshore and secure.

Macquarie Technology has now delivered 20 consecutive half years of operating income growth. This track record reflects the growing and non-discretionary nature of its customer base.

The company's $200 million National Reconstruction Fund investment, announced in March 2026, will fund the IC3 Super West data centre expansion designed specifically for AI workloads requiring the highest levels of security and sovereignty.

Anthropic's Claude platform is increasingly being adopted by Australian government agencies, financial institutions, and critical infrastructure operators.

Many of these organisations cannot use offshore AI infrastructure for regulatory or security reasons.

This creates a captive market for sovereign cloud providers operating on Australian soil.

Macquarie Technology is positioned to capture that demand. And no overseas hyperscaler can replicate what it offers in terms of data sovereignty and security clearance.

The broader AI IPO wave

The Anthropic IPO is not an isolated event.

SpaceX's roadshow began this week, targeting a US$2 trillion valuation. OpenAI is expected to file later in 2026 at a similarly extraordinary valuation.

Together, these listings represent the single largest concentration of AI industry capital ever brought to public markets simultaneously.

Investment banks, including JPMorgan, Goldman Sachs, and Morgan Stanley, leading these listings, believe the liquidity impact is manageable. There is an estimated US$8 trillion sitting in US money market funds, providing the base demand for these deals.

As that capital flows into public AI companies, the attention and institutional interest in AI infrastructure plays, including those listed on the ASX, is likely to intensify rather than diminish.

The risks worth knowing

Both Nxt DC and Macquarie Technology carry meaningful capital expenditure commitments and are sensitive to interest rate movements given their asset-heavy models.

The Anthropic IPO has not yet been confirmed with a specific date or price. If it is delayed or prices are below expectations, the near-term sentiment benefit for AI infrastructure stocks could be muted.

Furthermore, both stocks have already run significantly in recent years, which limits the margin of safety at current prices.

Foolish Takeaway

Australian investors cannot buy Anthropic directly on the ASX.

But what they can buy is the infrastructure Anthropic depends on to operate.

NextDC and Macquarie Technology are two of the most credible and directly positioned ASX-listed beneficiaries of the AI mega-IPO wave now unfolding.

As trillion-dollar AI valuations are validated in public markets for the first time, the infrastructure enabling those companies becomes not just an investment theme but a critical asset class.

The post The Anthropic IPO could be the next big catalyst for ASX AI infrastructure stocks appeared first on The Motley Fool Australia.

And in March 2026, the government has put its money where its mouth is.

Macquarie Technology Group Ltd (ASX: MAQ) secured a $200 million hybrid investment from the National Reconstruction Fund Corporation. This is the largest single technology sector investment the NRF has made to date.

The funding will help ensure that critical digital infrastructure and information, including the data of everyday Australians, remains securely onshore.

This is a bet by Australia's sovereign investment fund on the most important digital infrastructure company many Australian investors have never heard of.

What Macquarie Technology actually does

Macquarie Technology is not a household name, but its customers are.

The company provides sovereign cloud, cybersecurity, data centre, and telecommunications services to Australian businesses, critical infrastructure operators, and government agencies.

Its data centre in Canberra is home to some of Australia's most sensitive government data. The company's cloud platform hosts critical workloads for departments that cannot risk their information residing on offshore servers.

Unlike many speculative AI stocks, Macquarie Technology already generates meaningful earnings and has very visible demand drivers.

The company has now delivered 20 consecutive half-years of operating income growth, an impressive track record in any market environment.

The $200 million investment and what it funds

The NRF investment is structured as a hybrid note, part debt and part equity, making it the first of its kind from the NRF.

Management plans to draw down the first $100 million by this month and the second tranche by March 2027.

The capital will fund the expansion of Macquarie Technology's IC3 Super West data centre in Sydney. This facility is designed specifically for AI infrastructure workloads requiring the highest levels of security and sovereignty.

The investment will create 140 high-skilled jobs in cybersecurity, AI and software engineering.

CEO David Tudehope said at the time of the announcement:

This investment will accelerate our ability to provide the most secure, sovereign AI infrastructure in Australia, allowing our customers to harness the rapid growth of AI while ensuring their critical data never leaves Australian shores.

The broker view on MAQ shares

The broker community responded positively to the NRF investment.

Canaccord Genuity upgraded MAQ shares following the announcement, with an upgraded price target predicting significant upside from current levels.

The broker noted the NRF investment validates Macquarie Technology's unique position in the Australian market and dramatically improves its capacity to fund growth without relying on traditional equity raisings.

The ASX AI share has now delivered 20 consecutive half-years of operating income growth. This metric has given Canaccord confidence the momentum will continue as the IC3 Super West expansion comes online.

The risks worth knowing

Macquarie Technology is not the most liquid stock on the ASX, with a market capitalisation of approximately $1.96 billion placing it firmly in mid-cap territory.

That means institutional buying can move the price significantly in either direction.

The company operates in a competitive market for cloud and data centre services, even if the sovereign angle provides some insulation from hyperscale competition.

Furthermore, the government contract market can be lumpy, with large tenders taking time to convert to revenue.

Foolish takeaway

Goodman Group (ASX: GMG) and NextDC Ltd (ASX: NXT) attract most of the data centre headlines on the ASX.

But Macquarie Technology is quietly something different and arguably more defensible: the sovereign AI infrastructure layer that Australian government agencies and critical industries cannot outsource offshore.

The NRF investment provides $200 million of growth capital at favourable terms, 20 consecutive half-years of earnings growth provide the track record, and Canaccord's upgraded price target provides the broker conviction.

For investors who have not yet discovered Macquarie Technology shares, now may be the time to look more closely.

The post Why Macquarie Technology is one of the most interesting AI infrastructure plays on the ASX appeared first on The Motley Fool Australia.

SGH is a leading Australian diversified operating and investment Group with market leading businesses and investments in Industrial Services, Energy and Media sectors. 

The company has seen its share price slip almost 12% year to date, however brokers are anticipating a recovery throughout the next 12 months. 

What did the company report at its investor day?

According to the release, FY26 EBIT growth is expected to be within the range of low to mid single-digit. 

The company also reported HY26 EBIT up 22% on 2H FY25.

Bell Potter noted that the company also plans to generate $100m in benefits from AI initiatives over FY26–27.

The company also aims to grow earnings steadily over time, maintain strong returns on investments, and eventually increase its market value to $30bn and join the ASX50.

Management remains positive on long-term demand from Australian infrastructure spending, mining growth, ageing mining equipment needing maintenance, and stronger gas and LNG markets. 

Other updates included a new property development joint venture for Boral, plans for better equipment utilisation at Coates, and continued focus on improving Boral's profit margins.

Bell Potter slightly lowered its earnings forecasts for SGH because it now expects weaker revenue growth and margins across some divisions.

Updated targets from Bell Potter

Based on this guidance, the team at Bell Potter lowered its price target to $50.00 (previously $56.00). 

However, from yesterday's closing price of $41.30, this indicates roughly 21% upside. 

We view SGH's market valuation as undemanding. SGH has articulated a robust medium and long-term valuation creation framework at its FY26 Investor Day, underpinned by reasonable operational targets. Any forthcoming M&A activity would likely be well received by the market.

It's worth noting that Bell Potter isn't the only broker with a positive outlook for this ASX industrials stock. 

The team at Macquarie increased its price target on SGH shares to $50.40 following the investor day. 

Macquarie said while macroeconomic conditions remained complex, SGH's execution remains strong, "and Boral likely continues to support the majority of near-term growth".

Additionally, RBC Capital Markets also recently released a report on SGH, with a price target of $47.

These targets all indicate an upside hovering around 20% for this ASX industrials stock. 

The post This ASX industrials stock could be set to race 20% higher: Expert appeared first on The Motley Fool Australia.

That scarcity could create opportunities for investors willing to look beyond the market's obvious winners. A handful of lesser-known ASX AI shares still offer the kind of catalysts, operating leverage, and re-rating potential that could drive outsized returns.

Here are two names increasingly catching investor attention.

Macquarie Technology Group Ltd (ASX: MAQ)

First up is Macquarie Technology. This ASX AI share is rapidly emerging as one of the clearest "picks and shovels" plays on the AI boom.

As artificial intelligence adoption accelerates, demand is exploding for data centres, cloud infrastructure, cyber security, and sovereign hosting solutions. These are exactly the areas where Macquarie Technology is investing aggressively.

In March, the company secured a $200 million hybrid investment from the government-backed National Reconstruction Fund Corporation.

The funding will help accelerate development of sovereign cyber security and cloud services and AI infrastructure for government agencies and defence and critical industries. Management plans to draw down the first $100 million by June 2026 and the second tranche by March 2027.

Unlike many speculative AI stocks, Macquarie Technology already generates meaningful earnings and has very visible demand drivers. The ASX AI share has now delivered 20 consecutive half-years of operating income growth, an impressive track record in any market environment.

As more data centre capacity comes online and utilisation rates rise, earnings could expand rapidly.

If the market begins valuing the company more like established data centre operator NextDC Ltd (ASX: NXT), investors could see significant upside from current levels.

Appen Ltd (ASX: APX)

Then there's Appen. This is unquestionably the more speculative of the two ASX AI shares, but it may also carry the greatest upside potential.

Appen provides training data used by artificial intelligence models, placing it directly in the centre of the generative AI ecosystem.

After several difficult years, there are finally signs the business may be stabilising. For the March quarter, Appen reported revenue of $54.8 million, up 9% from the prior corresponding period. That marks an encouraging shift after a prolonged period of declining sales.

Profitability also improved. Underlying EBITDA came in at $1 million, compared to a $1.5 million loss a year earlier.

The strongest momentum is clearly coming from China. Revenue in the region surged 88% to $34.9 million, driven by growing demand tied to generative AI projects. The division exited the quarter with an annualised revenue run rate above $144 million.

Outside China, however, conditions remain challenging. The Appen Global segment saw revenue tumble 37% and posted an EBITDA loss of $3.1 million, reflecting the uneven nature of project-based work.

Even so, after the share price collapsed almost 90% over the past five years, expectations are now extremely low.

That creates an interesting setup. If demand for high-quality AI training data continues recovering or if Appen secures new strategic partnerships, even modest operational improvements could spark a sharp market re-rating.

The post These under-the-radar ASX AI shares are starting to turn heads appeared first on The Motley Fool Australia.

Since then, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has recovered by 12%.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) has risen 2.1% over the same period.

Let's look back and see what happened to the share prices of the top 10 ASX tech shares during the downturn.

Then, let's compare that data to the performance of BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC).

Given the popularity of exchange-traded funds (ETFs) these days, I'm curious as to whether the only ASX tech ETF tracking Australian technology shares alone provided any protection against the sector downturn.

One of the appeals of ETFs is that they represent a basket of stocks. This can reduce the impact of a large price drop in a single stock.

But what if a whole sector falls? Does the structure of ASX ETFs provide any protection for investors?

Let's conduct a litmus test.

Top 10 ASX tech shares

As stated earlier, the S&P/ASX 200 Information Technology Index fell 48% between 29 August and 30 March, and has rebounded 12% since.

Let's compare that to the share price falls and recoveries of the top 10 tech shares on the market.

How did ATEC ETF do?

The ATEC ETF fell 42% between 29 August and 30 March compared to the 48% drop for the S&P/ASX 200 Information Technology Index.

Since then, ATEC ETF has recovered 8% compared to a 12% lift for the ASX 200 Info Tech Index.

So, the fall was not as bad with ATEC ETF during the tech rout, but the recovery has not been as fast as the ASX 200 tech sector.

Interesting.

ATEC tracks the S&P/ASX All Technology Index (before fees and expenses).

It's the only option for investors who want exposure to Australian technology through an ASX ETF.

However, it's important to know that the S&P/ASX All Technology Index is different to the S&P/ASX 200 Information Technology Index.

The ASX 200 Info Tech Index is comprised of the top 200 tech companies ranked and weighted by market capitalisation.

The All Tech Index is much smaller, comprised of just 45 companies, and only 56% are technically in the tech sector.

The others are from the communications, industrials, healthcare, and financial sectors, but their operations are heavily tech-related.

For example, the largest holding in ATEC is ASX 200 industrials share, Computershare Ltd (ASX: CPU) at 10%.

The fourth biggest holding is Car Group Limited (ASX: CAR), which is a communications sector share, at 8.9%.

The owner of realestate.com.au, REA Group Ltd (ASX: REA), is the sixth biggest holding at 7.5%. REA is also a communications share.

At No. 8 is ASX 200 healthcare share Pro Medicus Ltd (ASX: PME) at 6%.

At No. 9 is another communications share, Seek Ltd (ASX: SEK) at 4.2%.

This diversity of sectors, along with the less volatile nature of ETFs, appears to have provided some protection during the tech sector rout.

The post ASX tech shares vs. ATEC ETF: How they fared during sector downturn appeared first on The Motley Fool Australia.

At the time of writing the shares are up 6.5% to $46.30 a piece. At one point this morning the tech company's shares climbed as high as $46.80 each.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.6% for the day at the time of writing and the S&P/ASX 200 Information Technology Index (ASX: XIJ) is up 1.1% and trading at a two-month high.

The latest uptick means the tech shares have climbed over 12% in the past five days alone. The jump also means that WiseTech shares have now rebounded 27% from a multi-year low of $36.53 recorded on Monday last week.

There is still a low way to go for WiseTech shares, though. Even after the rebound, the shares are still down 32% for the year-to-date and a huge 51% lower than this time last year.

What is happening to WiseTech shares?

It's been a bloodbath for WiseTech shares over the past 10-months, with the tech company hit by multiple and consecutive headwinds which sent its share price tumbling. The downturn accelerated in 2026.

WiseTech was caught up in a tech-sector wide sell-off earlier this year after investors became concerned about the implications of AI on traditional software models. Many were worried that AI tools might replace or reduce demand for subscription-based software. 

Shortly later, concerns about escalating conflict in the Middle East spooked investors further. Global sharemarket uncertainty saw investors turn their back on high-growth technology stocks like WiseTech and rotate towards more stable assets instead.

There hasn't been any price-sensitive news out of WiseTech to explain today's price hike, but the company did confirm it will participate in the 2026 Macquarie Australia Conference in Sydney on 5-6 May 2026. 

WiseTech said it will outline its strategy for the next phase of long-term growth at the conference.

In the materials, WiseTech confirms an FY26 underlying EBITDA guidance range of US$598.5 million to $637.5 million.

The company expects margins expected to be lower short term (around 40-46%) due to integration impacts, most notably from its e2open acquisition.

It's likely that a rebound of investor confidence in WiseTech and also ASX tech shares overall, is also helping today's share price climb.

Can the shares keep climbing?

It's possible that could be the beginning of a good rally for WiseTech shares.

According to TradingView data, analysts are very bullish about the outlook for the tech over the next 12 months.

The majority (16 out of 17) have a buy or strong buy rating on the stock. That's an upgrade from 14 out of 16 analysts with a buy or strong buy rating in mid-April. 

The average target price is $76.55, which implies a potential upside of 67% over the next 12 months. Although others think that the tech shares could climb up to 152% to $115.78.

The post WiseTech shares are flying 6.5% higher today. Can they keep going? appeared first on The Motley Fool Australia.

The ASX tech rally has been anything but broad. While WiseTech Global Ltd (ASX: WTC) shares and others like Xero Ltd (ASX: XRO) have surged on the back of the AI and SaaS boom, a second wave of opportunities may be quietly forming.

Here are three ASX AI shares that stand out.

Macquarie Technology Group Ltd (ASX: MAQ)

First up is Macquarie Technology Group. This ASX AI share is emerging as one of the clearest "picks and shovels" plays on artificial intelligence. As demand for AI accelerates, so too does the need for data centres, cloud infrastructure, and secure sovereign hosting. These are all areas where Macquarie Technology is investing heavily.

Unlike many speculative AI shares, this is a business with real earnings and tangible demand drivers. As new capacity comes online and utilisation rates increase, earnings could scale quickly.

If that happens, the market may start valuing it more like established data centre leader NextDC Ltd (ASX: NXT) — and that could mean significant upside.

Objective Corporation Ltd (ASX: OCL)

Next ASX AI share is Objective Corporation. This is a classic under-the-radar SaaS compounder, like WiseTech shares. Objective provides document management and compliance software, primarily to government and regulated industries — making its customer base incredibly sticky.

While it doesn't grab headlines, it has all the hallmarks of a long-term winner: recurring revenue, high margins, and disciplined growth. Importantly, the rise of AI is likely to enhance its offering, particularly in automating workflows and extracting insights from large volumes of documents.

Because this AI share flies under the radar, Objective hasn't enjoyed the same valuation expansion as some of its peers. But if it continues to execute, investors may start to re-rate the stock accordingly.

Appen Ltd (ASX: APX)

Finally, there's Appen. This is the most speculative of the three ASX AI shares, but also the one with the highest potential upside. Appen provides training data used in artificial intelligence models, placing it right in the middle of the AI ecosystem.

After a sharp decline in recent years, expectations are now extremely low. That creates an interesting setup. If demand for high-quality training data rebounds or the company secures new partnerships, even modest improvements in performance could trigger a sharp re-rating.

Of course, the risks remain elevated, particularly as the AI landscape evolves. But for investors with a higher risk tolerance, Appen could offer significant leverage to any recovery in sentiment.

Foolish Takeaway

The bottom line is that the ASX AI rally may still have further to run, but the biggest gains might not come from the likes of WiseTech and Xero that have already surged.

Instead, it could be these under-the-radar ASX AI shares, operating just beneath the surface, that deliver the next wave of standout returns.

The post 3 under-the-radar ASX AI shares that could be the next WiseTech appeared first on The Motley Fool Australia.

Energy prices and supply chain networks impact almost all corners of the global economy.

So it wasn't surprising to see a broad market sell-off over the first three weeks of March as multiple industries assessed the damage.

The sell-off now leaves room for investors to buy the dip.

A two-week ceasefire is underway amid hopes of a long-term deal between the US and Iran soon.

Brokers have reviewed their ratings after many shares fell, and they see good opportunities across a number of industries.

Here are some of the ASX All Ords shares elevated to strong buy consensus ratings after last month's turmoil.

6 ASX All Ords shares newly upgraded to strong buy ratings

These ASX shares have just been upgraded to strong buy consensus ratings among analysts on the CommSec platform.

A consensus rating represents the average rating among analysts.

Kingsgate Consolidated Ltd (ASX: KCN)

The Kingsgate Consolidated share price fell 38% in March alongside a big fall in the gold price.

In April so far, the ASX All Ords gold share is up 19% to $5.22 at yesterday's close.

MA Financial is among the brokers that have upgraded Kingsgate shares.

The broker also lifted its 12-month share price target from $6.85 to $6.95.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The Pinnacle Investment Management share price fell 10% in March.

This month, the ASX All Ords financial shares is up 4% to $14.63.

Canaccord Genuity is buy-rated on Pinnacle shares with a $24.53 target.

Zip Co Ltd (ASX: ZIP)

The Zip share price fell 19% in March.

This month, the ASX All Ords financial share is up 19% to $1.84.

Blackwattle holds Zip shares in its Small Cap Quality Fund.

Portfolio managers Robert Hawkesford and Daniel Broeren describe Zip as 'one of the most compelling value opportunities on the ASX'.

WA1 Resources Ltd (ASX: WA1)

The WA1 Resources share price fell 20% in March.

This month, the ASX All Ords copper share is up 9% to $15.19.

Canaccord Genuity is buy-rated on WA1 Resources shares with a $32 target.

Macquarie Technology Group Ltd (ASX: MAQ)

The Macquarie Technology share price fell 12% in March.

In April so far, the ASX All Ords tech share is up 12% to $66.60.

Canaccord Genuity is also buy-rated on this stock with a $95 target.

Santana Minerals Ltd (ASX: SMI)

The Santana Minerals share price fell 27% in March.

This month, the ASX All Ords gold share is up 2% to 68 cents.

Shaw & Partners has a buy rating and a $2.15 target on Santana Minerals shares.

Further reading

Check out 7 ASX 200 shares just upgraded to strong buy ratings, too.

The post 6 ASX All Ords shares elevated to strong buy status after March sell-off appeared first on The Motley Fool Australia.

So what did the company announce this week?

Major government investment

Macquarie Technology said that it had secured a $200 million hybrid investment from the National Reconstruction Fund Corporation, which it said was "established by the Australian Government to support nationally significant technological innovation, digital infrastructure, defence and national security''.

The investment would be in the form of unsecured and non-convertible securities, and would be issued in two tranches, on or before June 1, 2026 and March 1, 2027.

The company said regarding the investment:

The proceeds of the issue will be used by the company and its subsidiaries for the development of sovereign secure digital infrastructure and cyber security services with strategic product development initiatives focused on its Cloud Services and Government business segment supporting accelerated use of sovereign cloud services and AI by Australian government agencies, the Department of Defence, defence industry, critical infrastructure sectors, and Australian businesses. This investment by NRFC as a long-term, strategic partner, provides an efficient, non-dilutive form of capital that significantly enhances the group's balance sheet flexibility and an initial financing initiative to obtaining incremental funding to support strategic growth initiatives.  

Shares looking cheap

The team at Cannaccord Genuity said it sounded like the investment, which would sit on the balance sheet as non-dilutive equity, would be used for future capital investments into sovereign cloud infrastructure and the use of AI by government agencies.

They said the investment was "a strong endorsement of Macquarie Technology Group's business generally and the quality of its Cloud Services & Government (CS&G) offering more particularly, in our view''.

Canaccord has estimated that, calculated at the end of December last year, the instrument would reduce Macquarie Technology's gearing position from 27% net debt to equity to 20%.

They added:

We read this announcement as a positive for MAQ because (1) attracting an investor like NRF, whose due diligence we believe to be very extensive, is a significant endorsement of MAQ's business generally and CS&G's capabilities in particular, and (2) the funds are to be deployed to grow areas of the business outside the Data Centre segment, and specifically CS&G. We noted in our update following the 1H FY26 results that the CS&G segment has been in a growth lull for some time and that the business as a whole seemed to perform much better when CS&G was growing at a solid rate. In addition, we view the use of this instrument leaves a wide array of funding options available for MAQ's future growth requirements in other areas.

Canaccord has a price target of $95 on Macquarie Technology Group shares compared with just $65.21 currently.

The company was valued at $1.73 billion at Wednesday's close.

The post This All Ords technology stock could shoot the lights out: broker appeared first on The Motley Fool Australia.

Four ASX shares rising more than most today are listed below. Here's why they are pushing higher:

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price is up 7% to $5.53. This morning, this rare earths developer announced new exploration results at the Sulista Project in Brazil. The company revealed that its latest exploration campaign has delivered excellent results across multiple targets, materially expanding the Sulista mineralised footprint and reinforcing Sulista East as the anchor deposit within a rapidly growing district-scale rare earth development opportunity. Brazilian Rare Earths' CEO and managing director, Bernardo da Veiga, commented: "Together, these results strengthen the basis for our near-term scoping study and support our hub-and-spoke development strategy across the Rocha da Rocha Province."

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is up over 12% to $19.95. After the market close on Tuesday, this rare earths giant announced a revised long-term supply agreement with JARE, extending to 2038 and establishing a firm offtake for 5,000 tonnes of NdPr per year at a US$110/kg price floor. Lynas' CEO and managing director, Amanda Lacaze, said: "We are delighted that the revised 12-year availability and supply agreement with JARE will support both Japanese industry and the continued growth and development of Lynas. This new agreement will ensure continued reliable supply of rare earth products that are strategically important to Japanese industry and its global market, and at the same time, the implementation of fair market pricing will reduce price volatility for Lynas and enable continued growth and investment in our operations."

Macquarie Technology Group Ltd (ASX: MAQ)

The Macquarie Technology share price is up 5% to $65.95. This morning, Macquarie Technology revealed that it has secured a $200 million hybrid investment from the government-backed National Reconstruction Fund Corporation. It notes that this funding will support the company's development of sovereign cyber security and cloud services for critical industries and government.

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda Mining share price is up 18% to $1.38. This has been driven by the release of an update on the miner's Round Dam gold deposit in Western Australia. Management revealed that its new mineral resource is 25.6Mt at 1.6g/t for 1.330 million ounces. This is up materially from 125,000 ounces previously. Ora Banda's managing director, Luke Creagh, said: "We are incredibly excited by the potential of Round Dam to become a substantial mining operation, as the company continues to advance its study work into the construction of a standalone ~3mtpa processing facility at Davyhurst."

The post Why Brazilian Rare Earths, Lynas, Macquarie Technology, and Ora Banda shares are pushing higher today appeared first on The Motley Fool Australia.

What did Macquarie Technology Group report?

• Secured $200 million hybrid investment from National Reconstruction Fund Corporation (NRFC)
• Funds to be issued in two series of $100 million each, before June 2026 and March 2027
• Hybrid Securities are perpetual, subordinated, unsecured, and callable
• Distributions fixed at 6.00% p.a. (effective ~8.57%) until first call date, then floating rate
• Funds targeted to expand sovereign digital infrastructure and cyber security services

What else do investors need to know?

Macquarie Technology Group will use the proceeds to accelerate the rollout of secure cloud and cyber security solutions, with a focus on servicing Australian government agencies, defence, and businesses handling critical infrastructure.

The NRFC's strategic, non-dilutive investment adds flexibility to Macquarie's balance sheet without issuing new shares. This partnership with a major government investor underscores confidence in Macquarie's key role in Australia's digital and national security infrastructure.

What did Macquarie Technology Group management say?

Chief Executive David Tudehope said:

We are delighted to partner with NRFC and secure this investment, which provides long-term capital to support our growth initiatives while providing additional financial flexibility and diversification of our funding sources.

This new source of capital enables us to expand our role as a provider of secure digital infrastructure and cyber security, delivering significant benefit to the Australian economy over time.

What's next for Macquarie Technology Group?

Macquarie plans to draw down the first $100 million by June 2026 and the second by March 2027, using these funds to scale up its Cloud Services and Government (CS&G) business. The extra capital is expected to boost product innovation in sovereign cloud and AI, catering to sensitive sectors like defence and critical infrastructure.

The Group's management highlighted that the capital structure remains robust, with no new equity dilution. Macquarie aims to further strengthen its leadership in secure, sovereign digital infrastructure and cyber security solutions across Australia.

Macquarie Technology Group share price snapshot

Over the past 12 months, Macquarie Technology Group shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

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Meanwhile, the S&P/ASX 200 Index (ASX: XJO) rose 1.84% to finish at 9,081.4 points on Friday.

As earnings season continued, strong results and higher oil prices pushed the ASX 200 to a new record of 9,118.3 points on Thursday.

That beat the previous record of 9,115.2 points set on 21 October.

Eight of the 11 market sectors finished the week in the green.

Let's recap.

ASX tech shares led the market last week

Last week was a welcome bright spot for ASX 200 tech shares, which are in the midst of a prolonged rout.

And boy, is it ugly.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) has fallen by more than 40% over the past six months.

We took a deep dive into the issues plaguing the sector last week.

In a nutshell, there's fear in the market over artificial intelligence (AI).

Investors are worried about high tech stock valuations, extraordinary AI capex, and whether AI could white-ant SaaS companies.

Perhaps a rebound is now underway, given last week's 6.55% increase for the tech sector.

Let's take a look at what happened in the sector last week.

WiseTech Global Ltd (ASX: WTC) shares lifted 10.51% to finish at $47.10 ahead of the company's earnings release on Wednesday.

The Xero Ltd (ASX: XRO) share price rose 5.51% to $77.54.

NextDC Limited (ASX: NXT) shares slipped 0.71% to $13.92.

TechnologyOne Ltd (ASX: TNE) shares soared 22.71% to $24.74, with investors reassured by upgraded FY26 guidance at last week's AGM.

Shares in electronics solutions provider Codan Ltd (ASX: CDA) lifted 1.37% to $34.69.

Life360 Inc (ASX: 360) shares increased 8.27% to $23.84.

The Megaport Ltd (ASX: MP1) share price tumbled 9.98% after the company reported an underlying net loss of $3.3 million for 1H FY26.

The Dicker Data Ltd (ASX: DDR) share price rose 7.32% to $10.41 ahead of its earning report on Thursday.

Macquarie Technology Group Ltd (ASX: MAQ) shares rose 5.4% to $67.19.

The Data#3 Ltd (ASX: DTL) share price lifted 4.24% to $9.10 ahead of the IT solutions provider's earnings release on Monday.

Objective Corporation Ltd (ASX: OCL) shares increased 6.4% to $14.

The Iress Ltd (ASX: IRE) share price edged 0.43% higher to $7.05 ahead of the financial technology company's report on Wednesday.

The Catapult Sports Ltd (ASX: CAT) share price rose 5.72% to $3.51.

Hansen Technologies Ltd (ASX: HSN) soared 16.29% to $5.14 after the company reported a 389.1% lift in net profit for 1H FY26.

Hansen is one of a large group of ASX 200 shares going ex-dividend next week. The tech stock will pay a dividend of 5 cents per share.

Shares in hotel bookings management platform provider, Siteminder Ltd (ASX: SDR) rose 4.62% to $3.62.

The Weebit Nano Ltd (ASX: WBT) share price fell 0.2% to $4.90.

Shares in wealth management software company Bravura Solutions Ltd (ASX: BVS) fell 7.45% to $1.93.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 tech shares lead market sectors with a 7% bounce back appeared first on The Motley Fool Australia.

In a research note to clients this week, RBC said the Australian market had been caught up in the "AI euphoria risk trade, with the market seeing materially lower barriers to entry and disintermediation risks potentially impacting sales/margins over the medium long/term''

This had led to sharp down-ratings for some technology stocks over recent months, with some share prices halving over the past half year, RBC said.

They added:

We believe certain names have higher moats and are better protected, however marrying up an attractive entry point is difficult in the midst of negative macro tech sentiment and the tide running out fast.

The companies singled out as having a decent moat were Pro Medicus Ltd (ASX: PME), Technology One Ltd (ASX: TNE), REA Group Ltd (ASX: REA), and Wisetech Ltd (ASX: WTC).

On the risk front, some companies were facing increasing earnings risks from the higher Australian dollar, including Pro Medicus, Hansen Technologies Ltd (ASX: HSN), and Megaport Ltd (ASX: MP1).

Good value stocks abound

While RBC has flagged plenty of risks in the sector, they also have outperform ratings and solid price targets on eight stocks.

For Technology One, RBC says their UK growth narrative is continuing, and the company "has demonstrated the best AI capabilities we've seen to date amongst our coverage with its new PLUS Ai platform being released in market this year with monetisation into 2027''.

RBC has a price target of $32 on Technology One shares compared with $25.62 currently.

For Wisetech, they have a price target of $100 against $59.01 currently, saying the take-up of the company's new commercial model "should see positive tailwinds in 2H26".

RBC has a price target of $155 for Xero Ltd (ASX: XRO) shares, compared with $94.37 currently, saying the demand environment was "healthy" and that there could be a catalyst for a rerating in February, when the company demonstrates its Melio product offering.

On the data centre front, RBC says NextDC Ltd (ASX: NXT) is benefiting from the AI and cloud computing boom, adding that "hyperscalers continue to materially increase their capex on data centre-related investments, evidence of a healthy demand environment''.

RBC has a price target of $20 on NextDC shares compared with $13.21 currently.

And on much the same theme relating to data centre demand, it has a price target of $90 on Macquarie Technology Group Ltd (ASX: MAQ) compared with $69.60 currently.

For Hansen Technologies, RBC has a price target of $6.25, while on the speculative side, they have a price target for Megaport of $18 compared with $11.81 currently.

And last but not least, for Fineos Corporation Holdings Plc (ASX: FCL), RBC has a price target of $3 versus $2.30 currently.

The post Eight stocks to buy in the bruised tech sector according to RBC appeared first on The Motley Fool Australia.