WiseTech Global Ltd (ASX: WTC) shares have climbed into the green in Friday lunchtime trade.

At the time of writing, the ASX tech shares are up around 1%, and are changing hands for $37.02 a piece.

Today’s increase is good news for investors, but it barely makes a dent in the huge amount of losses shed so far this year.

The shares are now down 46% year to date and around 61% lower than a year ago.

What happened to WiseTech shares?

WiseTech shares were smashed by a tech sector-wide sell-off and an investor rotation to more stable assets amid global volatility earlier this year. 

The company’s shares have also come under pressure this year following a series of updates and media reports surrounding investigations into founder Richard White by the Australian Federal Police and recent news that the Australian Competition and Consumer Commission (ACCC) executed a search warrant on the company 

ASIC and the AFP also searched WiseTech Global’s headquarters in late October 2025.

More recently, investors rotated away from the stock after it posted its FY26 results late last month.

WiseTech reported that it has raised its annual earnings and flagged growth for FY27 in line with analysts’ expectations.

The company reported a 46% increase in EBITDA to US$558.4 million for the 12 months through to the 30th of June. The result was in line with the company’s $550 million to $585 million guidance range but short of market forecasts of $569.5 million.

Investors weren’t impressed and quickly sold up their shares. WiseTech shares have now tumbled over 18% since it posted its results.

Why I’d buy WiseTech shares in the dip

It’s been headwind after headwind for the tech company this year, and investor confidence has dwindled.

But WiseTech has a strong competitive advantage in the global logistics industry and strong growth prospects. 

The company’s CargoWise platform is deeply embedded in the global logistics industry. It is difficult to replace, and this gives WiseTech a strong competitive advantage in the global logistics industry.

If global trade volumes keep expanding and supply chains become more digital, WiseTech could become a dominant software provider in the logistics industry.

CEO Zubin Appoo has also previously commented that AI is actually strengthening the company’s advantage in the market. Rather than replacing the need for WiseTech’s subscription-based software, he said the company’s AI capabilities work to unlock efficiency gains and add value to customers. This is another strong tailwind for the business.

Let’s also remember that the company’s FY26 results came in line with its guidance figures, and a 46% increase in EBITDA shows that the business is performing well.

After the latest share price sell-off, the shares look significantly undervalued to me.

And it looks like brokers are also confident that WiseTech could still be a turnaround story.

What do brokers tip for the ASX tech stock next?

Market Index shows that all brokers are very bullish on the ASX tech stock and hold a strong buy rating. The average $61.19 target price implies a potential 66% upside over the next 12 months, at the time of writing. 

Most interestingly, this is a significant increase from just a week ago. Immediately following WiseTech’s results announcement, brokers were more divided, and the average target price was much lower at $54.71.

TradingView data also shows that brokers are much more positive following the company’s results announcement. Of 17 analysts, 13 have a buy/strong buy rating.

The average target price is largely unchanged, at $57.19. This implies a potential 56% upside over the next 12 months, at the time of writing.

If forecasts come to fruition, it looks like now is a great time to buy the shares in the dip while they’re still trading for cheap.

The post Down another 18%: Why I’d buy WiseTech shares in the dip appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

NEXTDC Ltd (ASX: NXT) has become one of the clearest ways for Australian investors to gain exposure to the artificial intelligence (AI) boom.

I think the opportunity could become much larger from here.

For investors comfortable with the risks that come with such rapid expansion, NEXTDC would be high on my ASX AI buy list.

AI needs somewhere to run

The investment case starts with a simple physical constraint.

AI requires enormous amounts of computing power, and that infrastructure needs secure buildings, huge amounts of electricity, sophisticated cooling, and reliable connections to networks and cloud platforms.

NEXTDC builds and operates the data centres that bring those requirements together.

AI is also changing what customers need from these facilities. NEXTDC says demand is moving towards larger deployments, higher power densities, and infrastructure capable of supporting advanced computing and liquid cooling.

I like this position because NEXTDC does not need to predict which AI model or application will eventually dominate.

If companies continue spending heavily on computing infrastructure, they will need somewhere capable of running it.

Customers are already committing

The strongest part of the story for me is that NEXTDC is seeing customers reserve enormous amounts of capacity ahead of delivery.

At the end of FY26, contracted utilisation had reached 740.1MW, while only 175MW was already billing.

That gap represents a substantial amount of contracted capacity still to be built, delivered, and eventually converted into revenue.

Earlier in 2026, NEXTDC estimated that its contracted utilisation at the time could generate more than $1 billion of EBITDA once delivered, without assuming additional customer wins.

For me, this makes the AI thesis much more tangible.

NEXTDC is investing billions of dollars because customers are signing contracts for capacity, rather than management simply building facilities and hoping demand arrives later.

There is a price for rapid expansion

This opportunity requires an extraordinary amount of capital.

NEXTDC has been raising equity, debt, and hybrid funding to accelerate construction, while major developments need access to land, power, equipment, and skilled workers.

Execution therefore becomes critical. Delays, cost overruns, financing pressures, or slower AI infrastructure spending could all hurt returns. Investors also need patience because there can be a long gap between signing a customer and the new capacity beginning to generate revenue.

I think those risks justify treating NEXTDC as a growth investment rather than assuming AI demand guarantees success.

Foolish takeaway

What excites me about NEXTDC is the amount of future business already taking shape.

AI is pushing computing requirements sharply higher, and customers are committing to NEXTDC’s capacity years before much of it starts billing.

There is a lot of expensive construction still ahead, but I think this ASX stock has positioned itself in a valuable part of the AI infrastructure chain.

If it delivers the capacity already contracted and continues winning demand, I believe it could become one of the ASX’s standout long-term AI investments.

The post Could this be one of the best AI investments on the ASX? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

Block Inc (ASX: XYZ) shares opened 2% higher on Friday to $115.06, after already jumping 4.5% higher on Thursday. That’s lifting the gain over the past 12 months to around 17%. Despite that solid run, the Afterpay owner still looks like a very interesting proposition for growth-focused investors.

Block offers exposure to some of fintech’s most attractive growth themes, including payments, lending, financial services, point-of-sale software and buy now, pay later. Its Cash App, Square and Afterpay businesses give it multiple avenues to capture that growth.

Investors may also have another reason for optimism: analysts believe Block shares are far from done. 

Block has multiple growth engines

Block has one of the most attractive long-term growth runways in the ASX tech sector. The company owns Square, Cash App, Afterpay and other payment and financial technology businesses, giving it exposure to merchants, consumers, payments, lending, point-of-sale tools, buy now, pay later and broader financial services.

Two powerful ecosystems sit at the centre of the strategy of Block shares. Cash App serves consumers, while Square provides payments, software and financial services to businesses. Afterpay adds another connection between shoppers and merchants.

Cash App’s opportunity extends well beyond peer-to-peer payments. The app is increasingly becoming a financial hub where customers can receive wages, use a debit card, save, borrow, invest and pay for purchases.

That gives Block several ways to deepen relationships with existing users. Someone who starts by sending money to a friend could eventually use Cash App as their primary financial account.

Is Block’s strategy starting to pay off?

The strategy appears to be gaining momentum. Cash App gross profit rose 38% year-on-year in the first quarter of FY26, while consumer lending origination volume jumped 82%.

Square provides another substantial growth engine. Its combination of payments, point-of-sale hardware, banking tools and industry-specific software allows sellers to manage more of their operations through one platform.

International expansion could provide another leg of growth for Block shares. Square’s international gross payment volume rose 35% year-on-year in the latest quarter, yet international volumes remain materially smaller than those in the US, representing approximately 22% of total Square GPV.

AI could add another growth catalyst

Block is also investing in practical artificial intelligence.

Moneybot is now live across Cash App, while Managerbot is being scaled across Square sellers. The tools are designed to help customers and merchants take action rather than simply receive information.

If AI helps sellers identify problems, improve workflows or understand patterns, Square could become even more valuable. Similarly, AI-powered financial guidance could encourage deeper Cash App engagement.

Analysts see major upside

Analysts remain broadly optimistic about Block shares, with several brokers maintaining buy ratings based on the company’s long-term growth potential and prospects for a rebound as economic conditions stabilise.

The average 12-month price target stands at $172.33, implying approximately 50% upside from the current share price.

The most bullish forecasts reach as high as $256, suggesting potential returns of approximately 123%.

For investors seeking exposure to a diversified fintech business, Block’s combination of Cash App, Square, Afterpay and AI initiatives could make the shares one of the more interesting long-term growth opportunities in the ASX technology sector.

The post Experts tip Afterpay owner Block shares to deliver over 50% returns 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 Block. 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.