Got $5,000 to invest? Here are 2 ASX tech stocks to buy today

ASX tech stocks have taken a serious hit over the past six months — and investors have clearly been in risk-off mode.

Shares in WiseTech Global Ltd (ASX: WTC) have plunged 59%, while NextDC Ltd (ASX: NXT) is down around 34%. That’s a sharp pullback for a sector that once led the market higher.

But this sell-off may have opened the door for savvy investors. With ongoing Middle East conflict, elevated interest rates, and rising concerns about AI disruption, many have rotated into defensive shares. In the process, ASX tech stocks are now shaping up as one of the most undervalued areas of the market — and potentially one of the most exciting.

So, could now be the time to put $5,000 to work? Two names that stand out right now are WiseTech Global and NextDC.

Wisetech: Dominant in global logistics

Starting with WiseTech, the ASX stock remains a dominant force in global logistics software. Its CargoWise platform is deeply embedded in international supply chains, giving it strong pricing power and high switching costs — the kind of competitive advantages investors love.

The long-term growth story also looks compelling, with global trade continuing to digitise. Of course, there are risks. The company has faced concerns around growth momentum and execution, particularly as it expands via acquisitions.

And like many ASX tech stocks, it has been caught in the crossfire of higher interest rates compressing valuations.

But analysts remain optimistic. Citi, for example, has a $65.35 price target on WiseTech shares — roughly 70% above current levels — suggesting the recent sell-off could be overdone.

NextDC: In the centre of digital boom

Turning to NextDC, this $7 billion ASX tech stock is right at the centre of Australia’s digital infrastructure boom.

As demand for cloud services, AI computing, and data storage continues to surge, its data centres are becoming increasingly essential. The business also benefits from long-term contracts and recurring revenue streams, which provide a solid base for future growth.

Still, it’s not without challenges. Data centres require heavy capital investment, and expansion can weigh on near-term earnings. Funding conditions and competition are also factors to watch.

Even so, brokers are upbeat. Morgans is firmly in the bullish camp, with a buy rating and a $20.50 price target on the ASX tech share. That points to a 79% upside over the next 12 months.

Foolish Takeaway

ASX tech stocks may be out of favour today, but that’s often when the biggest opportunities emerge.

WiseTech and NextDC are trading well below recent highs and are both backed by strong long-term tailwinds. They could be worth considering if you’re looking to invest $5,000 in the current market.

The post Got $5,000 to invest? Here are 2 ASX tech stocks to buy today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Marc Van Dinther 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. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.