ASX tech shares party on as OpenAI lands $225 billion valuation

Some interesting international developments seem to be driving ASX tech stocks higher today…

| More on:
A group of friends party and dance in the desert with colourful confetti all around them.

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

It's been a wonderful session for ASX shares so far this Thursday. At the time of writing, the S&P/ASX 200 Index (ASX: JXO) has lifted by a happy 0.765% to over 8,040 points. But many ASX tech shares are partying even harder than that today.

Take the TechnologyOne Ltd (ASX: TNE) share price. It's currently up a healthy 1.87% at $22.94 a share.

Xero Ltd (ASX: XRO) is doing even better, up 2.24% at $144.32.

Its old WAAAX peer WiseTech Global Ltd (ASX: WTC) is upping the ante. The Wisetech share price has swelled by 3.15% so far today to $131.18.

Megaport Ltd (ASX: MP1) is besting even Wisetech though, with Megaport shares having surged 3.6% to $7.78.

ASX tech shares are currently the best-performing corner of the entire market. The S&P/ASX 200 Information Technology Index (ASX: XIJ) has vaulted 1.7% higher at the time of writing.

So why are ASX tech shares leading the ASX 200 so comprehensively this session?

Why are ASX tech shares partying so hard today?

Well, it seems that some developments in the international tech arena might be to thank for this robust performance on the ASX.

Firstly, global tech giant and north star NVIDIA Corporation (NASDAQ: NVDA) had an explosive night on the American markets last night. The Nvidia share price rocketed a whopping 8.03% higher to close at US$116.78 a share. That's no mean feat for a US$2.87 trillion company.

This jump in value came after the Nvidia CEO spoke to the 'Goldman Sachs Communacopia + Technology Conference' this week. Jensen Huang told the conference that its products were so hot that the company could barely keep up with demand:

Demand is so great that delivery of our components, our technology, infrastructure, and software is really emotional for people because it directly affects their revenue. It directly affects their competitiveness.

Another factor in Nvidia's rise could be rumours, as reported by Reuters, that the US government is poised to allow the company to sell its chips to Saudi Arabia. Nvidia's chip sale exports are restricted by the US government due to their geopolitical significance. But entry to the lucrative Saudi market could prove to be a boon for Nvidia if the sales are greenlit.

OpenAI worth $225 billion?

Yet another catalyst that could be influencing ASX tech shares today is a new valuation for the artificial intelligence (AI) pioneer OpenAI. Perhaps most famous for its 'Chat GPT' program, the privately-owned OpenAI is reportedly in talks for a new round of funding.

According to Bloomberg, this funding round is based on a total valuation of US$150 billion ($224.2 billion) for the company. That would be a dramatic increase from the US$86 billion valuation OpenAI commanded only earlier this year.

This funding round could reportedly attract new investors such as Apple and Nvidia, in addition to Microsoft, an existing major investor.

There has been a lot happening on the international tech scene this week. It's hard to know for sure, but it seems that all of these developments are helping to drive positive sentiment for ASX tech shares this Thursday.

Motley Fool contributor Sebastian Bowen has positions in Apple and Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Goldman Sachs Group, Megaport, Microsoft, Nvidia, Technology One, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and 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

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
Technology Shares

Is this the decade of the data centre? One ASX 200 stock that could benefit

Let's see why one leading broker thinks this stock could be destined for big things.

Read more »

A human-like robot checks out market performance on a laptop, indicating the rise of AI shares.
Technology Shares

3 top performing ASX AI shares for your watchlist

Have you positioned your portfolio to capitalise on the next tech revolution?

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
AI Stocks

3 reasons to buy NextDC shares today

A leading expert forecasts more growth to come for NextDC's rebounding shares.

Read more »

A share market analyst looks at his computer screen in front of him showing ASX share price movements
Technology Shares

Why this $3.9 billion acquisition makes Xero shares a buy today

A leading expert forecasts that Xero’s $3.9 billion investment is about to pay off.

Read more »

Three young people in business attire sit around a desk and discuss.
Small Cap Shares

Tiny tech: 3 ASX small-cap shares with new ratings

Toby Grimm of Baker Young and Peter Day of Sequoia Wealth Management share their new ratings.

Read more »

Smiling young parents with their daughter dream of success.
Technology Shares

Could Life360 shares rise to $37.50?

Bell Potter has given its verdict on this tech stock.

Read more »

Man smiling at a laptop because of a rising share price.
Technology Shares

Investors should put these 2 top ASX tech shares on the watchlist

Looking for growth? These two stocks are delivering.

Read more »

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Share Gainers

ASX tech shares outperformed US tech stocks by 2:1 in FY25. Here's why

Forget the Magnificent 7! Aussie tech shares had twice as much price growth as US tech stocks in FY25.

Read more »