3 ASX tech shares to buy amid ongoing tech wreck

S&P/ASX 200 Index (ASX: XJO) tech shares are 4.1% lower on Thursday as the tech wreck continues to plague local stocks.

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

Investors and traders worldwide are worried about high stock valuations and extraordinary AI artificial intelligence (AI) capex spending.

There is also fear that AI will undermine the service offerings of many tech companies, especially software-as-a-service (SaaS) providers.

That’s a big issue for Australia’s comparatively small tech sector given four of our six biggest companies by market capitalisation are SaaS providers.

We’ve seen some signs of stabilisation in the tech sector since mid-February, starting with a 7% rally in the week ending 22 February.

Since then, ASX tech shares have outperformed, falling 2.2% compared to a 5.1% drop in the benchmark S&P/ASX 200 Index (ASX: XJO).

It’s unclear whether a recovery is underway as yet, but if you’re thinking of buying the dip, now could be the time.

On The Bull this week, experts have identified three ASX tech shares that they reckon are firmly in the buy zone.

WiseTech Global Ltd (ASX: WTC)

The Wisetech share price is 2.4% lower at $48.05 on Thursday, and down 43% over the past 12 months.

Wisetech is an SaaS company that develops and provides software solutions for the global logistics industry. 

Wisetech has been in the news after revealing it plans to cut 2,000 jobs over FY26 and FY27 as AI replaces human labour.

The company reported a 76% surge in revenue for 1H FY26, as management spoke of “a deep AI transformation” being underway.

John Athanasiou from Red Leaf Securities has a buy rating on Wisetech shares.

He comments:

First half revenue in fiscal year 2026 exceeded expectations.

Synergies from e2open were delivered 18 months early and customer retention remains about 99 per cent.

With dominant network effects across more than 190 countries, improving cost discipline and scalable growth opportunities, WiseTech offers a structurally de-risked path to margin expansion.

Xero Ltd (ASX: XRO)

The Xero share price is down 4.5% to $78.17 today, and down 50% over the past year.

Xero is also an SaaS business, providing accounting software solutions to small and medium businesses.

Athanasiou has a buy rating on this ASX tech share as well.

He says:

This accounting software provider has been sold off, but fundamentals remain strong.

Its capital light, subscription based model provides recurring revenue, pricing power and operating leverage.

Subscriber growth in Australia, New Zealand and the UK is resilient amid expanding margins through improving cost discipline.

The US market remains under-penetrated, offering options over the long term.

Artificial intelligence is likely to enhance Xero’s product suite, improving workflow automation and stickiness rather than disrupting revenue.

Last month, Xero conducted an investor briefing and released a presentation on how it intends to leverage AI opportunities.

Xero CEO Sukhinder Singh Cassidy said:

We are deeply focused on capturing the global AI and US accounting plus payments TAM.

Xero is well positioned to shepherd SMBs into the AI era and take advantage of this technology.

Athanasiou says Xero shares are trading below prior multiples, making the risk/reward proposition attractive for long term investors.

This is a profitable, global software platform with scale, and current weakness presents an accumulation opportunity for those looking beyond short term sentiment.

Nextdc Ltd (ASX: NXT) 

The Nextdc share price is 1.4% lower at $12.83, and up 1% over the past 12 months.

NextDC develops and operates data centres across Australia.

The company reported a 13% lift in total revenue to $231.8 million and a 9% increase in underlying EBITDA to $115.3 million for 1H FY26.

Nextdc revealed a net loss of $39.4 million, which was an 8% improvement on 1H FY25.

Elio D’Amato from EnviroInvest reckons this ASX tech share is a buy, commenting:

NXT sources renewable energy for its facilities and designs highly efficient cooling systems, reducing carbon intensity per megawatt.

Digital infrastructure is energy intensive, but efficient operators are poised  to benefit.

Structural demand and execution momentum, in our view, support further upside. 

The post 3 ASX tech shares to buy amid ongoing tech wreck appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.