Why did ASX tech shares soar 9% this week?

This week's surge had nothing to do with Wall Street or the NASDAQ.

Woman on her phone with diagrams of tech sector related elements linking with each other.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX tech shares have certainly come in for an impressive landing on Friday.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) screamed 8.65% higher this week, and this impressive surge was driven by home-grown factors rather than Wall Street.

Indeed, the Nasdaq Composite Index (NASDAQ: .IXIC) has barely moved by comparison. The Nasdaq is down 0.07% after four trading sessions with one more to go on Friday night.

In the meantime, ASX tech shares investors are popping the champagne on Friday after a stellar week.

The S&P/ASX 200 Index (ASX: XJO) rose by 0.76% to finish the week at 8,023.9 points.

Here's why the Aussie tech sector outperformed its international peers this week.

Why did ASX tech shares kick the Nasdaq's butt this week?

It was a case of the major ASX tech companies dragging the index higher this week.

Given their large market capitalisations, it's common to see the big players of a market sector push the index higher when they perform especially well.

Our prime example this week is WiseTech Global Ltd (ASX: WTC) shares, which rose by 29.37% this week.

Yep, in just one week.

Wisetech is the biggest company by value in the ASX tech sector. So, when its market cap increases by almost a third in five days, you can bet that's going to move the entire index.

Wisetech shares skyrocketed after the company delivered a scorching hot full-year FY24 report on Wednesday.

The company revealed a 28% increase in total revenue to $1.04 billion and a 28% lift in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $496 million.

Its underlying net profit after tax (NPAT) for FY24 was $284 million, up 15% year over year.

Investors went crazy and the Wisetech share price finished the day 18.41% higher on the exuberance. The momentum continued over the next two days and the Wisetech share price closed the week at $120.14.

The No. 2 market cap player among ASX tech shares, Xero Ltd (ASX: XRO) had a decent week with a 1.17% lift in its share price to $143.23 on Friday.

Xero held its annual general meeting on Thursday, where chair David Thodey discussed the $100 billion opportunity available to the company.

The third-largest ASX tech share, Nextdc Ltd (ASX: NXT), also had a solid week with its share price rising 2.49% to close at $17.72 on Friday. There was no news from the company this week.

TechnologyOne Ltd (ASX: TNE) shares rose strongly by 3.47% over the week to $23.28 apiece. This was despite no price-sensitive news this week.

The TechnologyOne share price hit a new all-time record high of $23.32 on Friday.

ASX tech share darling Life360 Inc (ASX: 360) put in another strong showing this week. The Life360 share price rose by 6.26% to finish the week at $19.36. It also cracked a new record high on Thursday at $19.49.

The sixth-biggest ASX tech share also had a hand in pushing the tech index higher this week. The Codan Ltd (ASX: CDA) share price rose by 15.99% to finish at $14.87 on Friday.

Foolish takeaway

So, ASX tech shares experienced a remarkable uplift this week mainly because the sector's No. 1 company gained almost 30% in value in five days.

The sector's next five biggest companies also produced share price gains this week. Collectively, this dragged the information technology index substantially higher.

It's worth mentioning, though, that a number of small-cap ASX tech shares also had a great week.

For example, Appen Ltd (ASX: APX) shares rose by 30.84% to close at $1.40 on Friday. The Appen share price has risen by more than 200% over the past four weeks.

Appen did not release any company news this week. The only price-sensitive announcement was its response to the ASX's query on its rapid price rise last week!

Should you invest $1,000 in Life360 right now?

Before you buy Life360 shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Life360 wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bronwyn Allen has positions in Appen. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Appen, Life360, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Man on his laptop standing next to data centres.
AI Stocks

3 reasons to buy this $9 billion ASX 200 AI stock today

A leading expert forecasts this $9 billion ASX 200 AI stock will deliver “meaningful earnings upside”.

Read more »

Business people discussing project on digital tablet.
Technology Shares

After its result, what does Macquarie think Xero shares are worth?

Here's what the leading broker is saying about this tech stock.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Technology Shares

Gentrack share price down 5% on half-year results

Let's unpack what was reported.

Read more »

Man with rocket wings which have flames coming out of them.
Technology Shares

Which ASX All Ords stock is jumping 14% on big counter-drone news

Investors are responding positively to news of a big contract win.

Read more »

Two plants grow in jars filled with coins.
Technology Shares

2 ASX growth shares I'd buy with $5,000 right now

I’m bullish about these two stocks with compelling growth potential.

Read more »

A woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.
Technology Shares

Growth investors should put these 2 top ASX tech shares on the watchlist

I think growth stocks from the tech sector could be exciting options.

Read more »

One girl leapfrogs over her friend's back.
Technology Shares

This ASX 200 tech stock would have doubled your money in a year. Is it too late to buy now?

After more than doubling in a year, here’s what Macquarie expects next for this soaring ASX 200 tech stock.

Read more »

Two brokers analysing stocks.
Technology Shares

What are top brokers saying about Xero shares?

Is now the time to buy this popular share? Let's see what brokers are saying.

Read more »