Down 50%, but could these top ASX tech stocks double from here?

ASX tech stocks have been under serious pressure. Once high-flying growth names have been dragged back to earth, with many now hovering near 52-week lows.

Two standout examples are Megaport Ltd (ASX: MP1) and Seek Ltd (ASX: SEK).

Over the past six months, Megaport shares have plunged 53%, while Seek has dropped 47%. Both have been caught in the same broad tech sell-off that has hit valuations across the sector.

So, is this the bottom or just another leg down?

Let’s take a closer look.

Megaport: beaten down, but not broken?

This ASX tech stock has had a brutal run. But underneath the share price weakness, its core business continues to tap into a powerful long-term trend: the growth of cloud computing and data infrastructure.

Megaport provides network-as-a-service solutions, allowing businesses to connect to cloud providers quickly and efficiently. As demand for data, Artificial Intelligence, and cloud services accelerates, that positioning becomes increasingly valuable.

And there’s a new tailwind emerging. According to Citi, demand for GPU rentals is surging, a trend that could significantly benefit Megaport’s Latitude business. As companies race to access AI computing power, infrastructure providers like Megaport could sit right in the middle of that demand spike.

Citi clearly sees value here. The broker has retained its buy rating and a $14.65 price target, implying potential upside of 114% from current levels.

That’s a bold call, but not without risk. The ASX tech stock is still a high-growth tech company, which means execution matters. Any slowdown in customer growth or margins could quickly derail sentiment. And in the current market, investors are less forgiving of misses.

Still, if AI-driven demand continues to build, Megaport could be one of the quieter beneficiaries.

Seek: a digital leader facing near-term headwinds

Seek tells a slightly different story. Unlike many tech names, this ASX tech stock is already a well-established, profitable business with a dominant position in online job classifieds across Australia and key international markets.

That market leadership gives it strong pricing power and a highly scalable platform. When hiring activity is strong, Seek tends to perform exceptionally well.

But that’s also where the risk lies. Seek is closely tied to economic conditions. If hiring slows — particularly in key markets — revenue growth can come under pressure. And right now, there are signs of exactly that.

Citi recently flagged near-term headwinds but still believes the ASX tech stock is undervalued. The broker has a $26 price target, suggesting around 77% upside from current levels.

The broader analyst community agrees. According to TradingView data, most brokers rate Seek as a buy or strong buy. The most bullish forecasts go even further, with price targets as high as $28.40, nearly double where the stock trades today.

Foolish Takeaway

Both Megaport and Seek have been hit hard by the tech sell-off. But neither story is broken.

Megaport offers exposure to the fast-growing world of cloud and AI infrastructure. Seek provides a dominant, cash-generating platform tied to employment cycles.

Both ASX tech stocks come with risks and face near-term uncertainty. But if sentiment turns and growth expectations stabilise these beaten-down tech stocks could have significant upside from here.

The question for investors is simple: are you willing to ride out the volatility to capture it?

The post Down 50%, but could these top ASX tech stocks double from here? appeared first on The Motley Fool Australia.

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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 Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.