Why are ASX tech shares booming on Friday?

It’s been a fairly lucrative day for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares so far this Friday.

After a shaky week, investors will be glad to see the ASX 200 gain 0.51% (at the time of writing), putting the index at around 7,650 points. But that rise pales in comparison to what we’re seeing with some ASX tech shares today thus far.

Tech stocks, to put it simply, are on fire this Friday. For one, the S&P/ASX 200 Information Technology Index (ASX: XTX) is currently the best-performing sector on the market, currently up 1.64%.

But some ASX tech stocks are doing even better than that. Take the Xero Ltd (ASX: XRO) share price. Xero shares are currently up a rosy 2.92% at $120.06 a share. Megaport Ltd (ASX: MP1) shares are up 1.6% at $13.98, while Life360 Inc (ASX: 360) stock has risen 2.65% to $8.12.

But that’s nothing compared to Weebit Nano Ltd (ASX: WBT) and Block Inc (ASX: SQ2). Weebit shares have rocketed 6.5% up to $4.42, while Block has exploded 15.9% higher to $117.34.

What’s setting ASX tech shares on fire today?

Well, it’s hard to say for sure. In some cases (well, Block’s), fresh earnings results appear to be responsible. But there’s little doubt that what’s happened overnight on the US markets has set the tone for today’s boom in the ASX tech space.

Last night, US tech stock lit up Wall Street. We saw moves like Apple gaining 1.12%, Amazon rising 3.55% and Meta Platforms shooting up 3.87%.

But the biggest mover was, once again, the NVIDIA stock price. Nvidia shares had yet another record-breaking night, smashing through to a new record high of US$785.75 after gaining a whopping 16.4%.

The catalyst for this extraordinary move was Nvidia’s latest earnings report. As my Fool colleague James covered yesterday, Nvidia once again blew expectations out of the water, reporting a 265% surge in year-on-year revenues to US$22.1 billion, alongside a 769% rise in net incomes to US$12.3 billion.

Incredible numbers for what is now close to a US$2 trillion company.

This dazzling report is probably behind the sunny day that ASX tech shares are currently enjoying on the local markets. So ASX tech investors, you now know who to thank for this happy day.

The post Why are ASX tech shares booming on Friday? appeared first on The Motley Fool Australia.

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More reading

• How is the Block share price rocketing 17% on Friday?
• Here are the top 10 ASX 200 shares today
• Nvidia stock pops 10% after-hours following ‘insane result’
• Could Nvidia become the most valuable stock on earth?
• Here are the top 10 ASX 200 shares today

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, and Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Block, Life360, Megaport, Meta Platforms, Nvidia, and Xero. The Motley Fool Australia has positions in and has recommended Block and Xero. The Motley Fool Australia has recommended Amazon, Apple, Megaport, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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