FY24 was a banner year for ASX artificial intelligence (AI) shares — and not just in Australia. AI was a global phenomenon as stock market indices around the world were also driven by large investments in AI shares that could potentially shape our future.
Here in Australia, companies like Dicker Data Ltd (ASX: DDR), Life360 Inc (ASX: 360), and Megaport Ltd (ASX: MP1) are leading the pack in very interesting ways.
These companies have not only delivered impressive financial performance but also positioned themselves at the forefront of AI technology integration and innovation.
Here's a closer look at the top 3 ASX AI shares in FY24, based on share price movement.
ASX AI shares perform in FY24
Dicker Data Ltd (ASX: DDR)
Dicker Data comes in at third place on the list of top ASX AI shares. Investors started buying Dicker Data shares at the start of FY24 when the stock was priced at $8.20 apiece. The ASX AI share secured an 18% gain as the FY24 year came to a close.
It shot to highs of $12.25 by December before consolidating gradually towards its current level, trading at $10.21 apiece at the close on Monday.
Dicker Data made its mark in the AI space by strategically distributing AI-capable hardware and software. The company facilitates the "AI transition" for numerous businesses by supplying critical tech components from top manufacturers.
In FY24, Dicker Data enhanced its position through key partnerships and an expanded product range that supports companies implementing AI.
Goldman Sachs rates the stock a buy with a $9.86 price target, implying a 3.5% upside potential.
Megaport Ltd (ASX: MP1)
Second on the list of ASX AI shares in focus today is Megaport. Its share price hit a high of $15.39 in March as investors went on a feeding frenzy for shares in the AI sector.
Over the 12 months to June 28, Megaport rallied from $7.22 per share to $11.22 apiece, eclipsing a total gain of 55%. Shares in Megaport closed on Monday trading at $11.17.
Like the other two ASX AI shares, Megaport has unique exposure to AI. The company offers a Network as a Service (NaaS) model that is crucial for businesses adopting new technologies.
In its most recent quarterly update, the ASX AI share grew sales 30% year over year, fueled by increasing demand for its services.
With plans to enter new markets and upgrade its platform, Megaport might be poised for further growth in FY25. Citi thinks so, recently rating Megaport a buy with a $16.05 per share price target.
After its FY24 run, the stock now trades at a price-to-earnings ratio (P/E) of more than 192.59 times.
Life360 Inc (ASX: 360)
In first place — and the top-performing ASX AI share in terms of share price – is Life360. In FY24, Life360 showed that AI can enhance safety and connectivity for families worldwide through its mobile app of the same name.
As a reminder, the company's AI tools provide real-time location updates, safety alerts while driving, and rapid emergency responses, securing a place in the lives of millions.
The ASX AI share finished the financial year at $16.37 apiece after starting the period at $7.60 – a more than 115% jump.
Most of this came in the second half of the year, as seen in the chart below. The Life360 share price closed at $16.05.
This reflected a year of significant growth driven by its AI innovations in personal security.
Life360's revenues were up 15% year over year in Q1 due to a jump in premium subscriptions. It booked US$78.2 million at the tip line, with the expansion of its safety features said to have drawn more users but also sharply cut churn rates.
Bell Potter rates the stock a buy with a $17.75 price target.
ASX AI shares in focus
It's no secret investors are focused on ASX AI shares as emerging technologies sprout in the space. Investment returns have been stellar, but there could be plenty of speculation in the mix as well.
As always, remember to conduct your own due diligence.
