Category: Stock Market

The past year has not been kind to some of the ASX’s highest-quality technology shares.

Concerns over interest rates and warnings about an AI bubble have dragged several tech leaders sharply lower. But while prices have fallen, their underlying businesses remain strong, profitable, and positioned for long-term growth.

For investors willing to look beyond the short-term noise, three standout ASX 200 tech shares now look far too cheap relative to their long-term potential.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne shares have slipped 30% from their high, but the business itself has barely missed a beat. It continues to deliver double-digit recurring revenue growth, near-perfect customer retention, and expanding profit margins.

TechnologyOne’s software powers universities, councils, and government agencies across Australia, New Zealand, and the UK. These are customers that do not switch providers easily, which gives it one of the stickiest and most predictable revenue bases in the market. So much so, management is confident that it can double in size every five years.

Despite this, its share price has been dragged down by the broader tech selloff and appears to have created a very attractive buying opportunity for patient buy and hold investors. Especially given the long runway of cloud migration ahead. Overall, TechnologyOne looks far too cheap for a business of its quality.

WiseTech Global Ltd (ASX: WTC)

WiseTech shares have fallen a massive 46% from their high this year, despite the business continuing to win new customers, grow revenue, and expand globally.

WiseTech’s flagship product, CargoWise, is used by the world’s biggest freight forwarders, logistics groups, and supply chain operators. It is deeply embedded into customer workflows, which creates incredibly sticky, recurring revenue. Even during economic slowdowns, logistics networks still need mission-critical software.

The company has a long track record of compounding earnings, improving margins, and securing multi-year enterprise contracts. Very few ASX 200 tech shares enjoy this level of competitive dominance or profitability.

The share price, however, does not reflect that. But if sentiment toward tech rebounds in 2026, WiseTech could easily be one of the strongest performers on the market.

Xero Ltd (ASX: XRO)

Another ASX 200 tech share that has fallen heavily is Xero. Its shares are currently 38% below their 52-week high, even though the company continues to deliver strong growth and expand globally. Across Australia, New Zealand, the UK, and North America, Xero remains one of the most successful cloud accounting platforms in the world.

The company now generates more than NZ$2.7 billion in annualised monthly recurring revenue from 4.59 million subscribers, yet it has only penetrated a small portion of its estimated 100-million-business global addressable market. That is a huge runway for long-term expansion.

It has also made a major acquisition in the US, to support its expansion in that key market. Overall, for long-term investors, today’s lower share price may prove to be a gift.

The post These fantastic ASX 200 tech shares look far too cheap appeared first on The Motley Fool Australia.

More reading

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• Top brokers name 3 ASX shares to buy next week
• Why today’s cheap ASX shares could double my money during the next bull market
• I’d listen to Warren Buffett’s advice to buy undervalued ASX shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With interest rates drifting lower and term deposit returns shrinking again, many income-focused Australians are wondering where to put their cash next.

While deposits offer safety, they rarely offer meaningful long-term returns, especially once inflation takes its slice.

For investors willing to move slightly up the risk curve, the Australian share market has plenty of reliable dividend payers that can deliver stronger income potential, along with the prospect of capital growth.

Three ASX dividend shares that could be good alternatives are named below:

HomeCo Daily Needs REIT (ASX: HDN)

If you are looking for dependable distributions, HomeCo Daily Needs REIT is one of the more attractive options on the market. It owns a high-quality portfolio of convenience-based shopping centres, anchored by major tenants such as the big two supermarket operators, along with pharmacies, medical centres, and essential retail.

These assets tend to hold up well regardless of economic conditions, which is exactly what income investors want. Even better, HomeCo Daily Needs REIT typically locks in long lease agreements with annual rent increases, helping keep its distribution profile consistent.

The consensus estimate is for the company to reward shareholders with a dividend increase to 8.7 cents per share in FY 2026. Based on its current share price of $1.35, this would mean a dividend yield of 6.4%.

Telstra Group Ltd (ASX: TLS)

Telstra has long been one of the most reliable ASX dividend shares. As the country’s largest telco, it benefits from stable cash flow generated by mobile, broadband, and network services. These are the kinds of services that Australians rely on every day.

While competition and price wars have created challenges over the years, the telco market appears rational at present and Telstra’s long-term strategy remains focused on higher-margin mobile products, network efficiency, and cost reductions. Its Connected Future 30 plan, which aims to deliver stronger long-term earnings, should be supportive of dividend growth in the coming years.

For now, analysts are expecting a 20 cents per share fully franked dividend in FY 2026. Based on the current Telstra share price of $4.92, this would mean a dividend yield of approximately 4.1%.

Woolworths Group Ltd (ASX: WOW)

Finally, supermarket giant Woolworths is another defensive dividend option worth considering. Even in tough economic conditions, consumers continue spending on essential groceries, fresh food, and household staples. This gives Woolworths consistent revenue, resilient margins, and significant pricing power.

The company’s strong balance sheet, market-leading position, and scale advantages support its ability to keep returning cash to shareholders.

And while Woolworths may not deliver the highest yield on the ASX, its reliability is what makes it an appealing alternative to low-return term deposits. You get a stable income stream, defensive characteristics, and long-term growth potential if its earnings continue to expand.

The market is expecting a fully franked dividend of 93.2 cents per share in FY 2026. This equates to a 3.2% dividend yield at current prices.

The post Forget term deposits and buy these ASX dividend shares appeared first on The Motley Fool Australia.

More reading

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• 3 reasons Telstra shares are a screaming buy right now!

Motley Fool contributor James Mickleboro has positions in Woolworths Group. 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 positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index was down a fraction to 8,614.1 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for a decent start to the week following a positive finish to the last one on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points higher. In the United States, the Dow Jones was up 0.6%, the S&P 500 rose 0.55%, and the Nasdaq pushed 0.65% higher.

Oil prices ease

It could be a soft start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices eased on Friday night. According to Bloomberg, the WTI crude oil price was down 0.2% to US$58.55 a barrel and the Brent crude oil price was down 0.8% to US$62.38 a barrel. Russia and Ukraine peace talks have weighed on prices.

Metcash results

Metcash Ltd (ASX: MTS) shares will be on watch today when the wholesale distributor releases its first half results for FY 2026. According to a note out of UBS, it is expecting the company to report sales of $9.69 billion, underlying EBIT of $253.7 million, and a net profit of $136.1 million.

Gold price jumps

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could start the week strongly after the gold price jumped on Friday night. According to CNBC, the gold futures price was up 1.25% to US$4,254.9 an ounce. This was driven by expectations that the US Federal Reserve will cut interest rates this month.

Buy Hub24 shares

Bell Potter thinks that Hub24 Ltd (ASX: HUB) shares could be in the buy zone today. This morning, the broker has retained its buy rating on the investment platform provider’s shares with a trimmed price target of $125.00. It said: “Negative surprise in the expense guidance, but we left confident in the growth outlook and cadence over peers. More than mitigated from scale and entrenches customers in line with our initial thesis. Adviser efficiency has historically benefitted flows/valuation.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

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• Here’s the average Australian superannuation balance at 50
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• $10,000 invested in Woodside shares 4 years ago is now worth…

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

As of the end of trading on Tuesday, Nvidia (NASDAQ: NVDA) boasted a market capitalization of about $4.3 trillion.

While shares of the semiconductor giant have soared by 1,000% throughout the artificial intelligence (AI) revolution, Beth Kindig of the I/O Fund thinks Nvidia’s rally is just getting started. In a recent investor note, Kindig outlined a path by which she believes Nvidia could reach a market cap of $20 trillion by 2030 — implying an upside of about 360% from current levels.

Below, I’ll explain what it will take for Nvidia to reach such a historic milestone and detail the catalysts that support even greater gains for the chip leader.

What would it take for Nvidia to reach a $20 trillion valuation?

Nvidia’s largest source of revenue is sales of its products to data centers, which make heavy use of its GPUs and complementary networking services.

In its fiscal 2026 third quarter, which ended Oct. 26, the company’s data center business generated $51.2 billion in revenue — implying an annual run rate of about $200 billion.

Kindig is modeling for Nvidia’s data center business to grow at a compound annual rate of 36% between 2025 and 2030. If that assumption proves accurate, that data center business would reach a $931 billion run rate by the end of that period.

From there, Kindig simply applies Nvidia’s five-year median price-to-sales (P/S) ratio of 25 to her figure for its expected data center revenue — which yields a market cap well north of $20 trillion.

The math is pretty straightforward. The more important details relate to why Kindig is so bullish on Nvidia’s prospects through the rest of the decade. 

How can Nvidia realistically become a $20 trillion company?

If you follow the AI narrative, you’ve probably heard quite a bit about the accelerating investments into data center infrastructure.

Research from Goldman Sachs suggests that by next year, hyperscalers including Microsoft, Alphabet, Amazon, and Meta Platforms will spend nearly $500 billion on AI infrastructure. To underscore the level of demand these companies are experiencing for AI-capable data center capacity, this expected acceleration in infrastructure spend represents more than a 50% increase in capital expenditures (capex) in just one year.

AMZN Capital Expenditures (TTM) data by YCharts.

Taking this one step further, McKinsey & Company is forecasting AI infrastructure to be a $7 trillion market opportunity over the next five years. More importantly, McKinsey is modeling for about $5 trillion of this spending will be allocated toward supporting AI workloads. Translation: Demand for Nvidia’s GPUs should remain incredibly robust for the foreseeable future.

This helps explain the scope of the broader AI infrastructure opportunity. But we can also look at a host of individual deals that benefit Nvidia directly, among them:

• In September, OpenAI announced its intention to deploy 10 gigawatts of Nvidia’s systems to help train its next-generation models. As part of the deal, Nvidia plans to invest up to $100 billion into OpenAI.
• In early November, OpenAI signed a $38 billion chip deal with Amazon Web Services (AWS). Per the terms of the partnership, Amazon will be renting clusters of Nvidia GPUs to OpenAI.
• A budding segment of the data center market called “neocloud” is rapidly gaining popularity with big tech players. Neocloud companies such as Nebius Group and Iren build their own data centers outfitted with Nvidia’s high-end hardware, and rent direct access to their servers under a model described as “bare metal as a service.”
• Following President Donald Trump’s inauguration in January, OpenAI, Oracle, and SoftBank announced a joint venture called Project Stargate — an ambitious plan to invest $500 billion into AI infrastructure in the U.S. over the next four years.

Nvidia looks poised to dominate the AI infrastructure revolution

The biggest risk I see to Kindig’s forecast is that it is based in part on the premise that Nvidia will not only maintain its current market share, but actually increase it. For Nvidia to meet her estimated growth rates, Kindig believes that it will need to capture about 60% of the AI capex spending over the rest of the decade. Today, Nvidia is drawing about 50% of AI infrastructure spending.

Admittedly, expanding its market share by another 10 percentage points would be a tall order. However, I think there are some factors here that mitigate the downside risk.

First, Nvidia’s current order backlog of $307 billion primarily revolves around the following product lines: its current Blackwell chips, its upcoming Rubin GPUs, as well data center services NVLink and InfiniBand. In the chart below, investors can see that Wall Street’s consensus calls for $312 billion of revenue for Nvidia’s entire business next year. In my view, analysts could be underestimating the incremental demand for Nvidia’s CUDA software platform, adjacent networking equipment, and other products within the company’s broader suite.

NVDA Revenue Estimates for Next Fiscal Year data by YCharts.

In addition, Nvidia is entering new markets, most notably AI telecommunications through a strategic investment in Nokia. It’s also entering into a collaboration under which Intel will design custom CPUs for Nvidia to integrate into its AI infrastructure platforms and GPU products.

Moreover, Kindig’s forecast doesn’t even account for the potential demand for GPUs from emerging applications in robotics, agentic AI, or autonomous systems.

Taken together, these investments and new markets represent additional trillions of dollars in incremental addressable market opportunities for Nvidia.

I expect Nvidia’s biggest challenge will be consistently balancing the dynamics of supply and demand. Thankfully, Nvidia’s fabrication partner, Taiwan Semiconductor Manufacturing, has been expanding its foundry footprint and building out additional production capacity, which should help mitigate supply chain bottlenecks.

With this in mind, I think Nvidia is more than well positioned to dominate the AI infrastructure era, and could be the first company to achieve a $20 trillion market value.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 1 unstoppable artificial intelligence (AI) stock to buy before it soars more than 300%, according to a Wall Street analyst appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Goldman Sachs Group, Intel, Meta Platforms, Microsoft, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short November 2025 $21 puts on Intel. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While the market has been choppy this year, long-term investors know volatility often creates opportunity.

If your time horizon stretches well beyond the end of this decade, some of the most powerful megatrends in technology, digital assets, and innovation could deliver exceptional growth.

One of the simplest ways to tap into those opportunities is through exchange-traded funds (ETFs).

With a single purchase, you can gain access to dozens of high-growth stocks that are shaping the next era of the global economy.

Here are three ASX ETFs that stand out for investors seeking explosive long-term growth.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

For investors who want exposure to Australia’s best technology stocks, the BetaShares S&P/ASX Australian Technology ETF could be the go-to option. It captures a portfolio of homegrown innovators positioned to benefit from digital transformation, cloud adoption, automation, and high-performance computing.

This ASX ETF’s holdings include market leaders such as WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO) and NextDC Ltd (ASX: NXT). These companies continue to expand internationally and dominate their respective niches in logistics software, small business accounting and data centre infrastructure.

For investors who want pure exposure to the ASX tech sector, this fund remains one of the best options available. It was recently named as one to consider buying by analysts at Betashares.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The BetaShares Crypto Innovators ETF is certainly not for the faint-hearted. But for long-term investors with a tolerance for volatility, it offers exposure to one of the fastest-growing technology frontiers: digital assets.

Instead of holding cryptocurrencies directly, this ASX ETF invests in stocks that are building the infrastructure of the crypto ecosystem.

Its holdings include Coinbase Global (NASDAQ: COIN), Marathon Digital Holdings (NASDAQ: MARA) and Hut 8 Mining (NASDAQ: HUT). These companies form the backbone of crypto trading, blockchain validation, and digital transaction networks.

Coinbase is particularly interesting. As regulatory clarity improves and mainstream adoption increases, it stands to benefit from higher trading volumes, institutional participation, and the broader expansion of the digital asset economy.

For investors aiming for explosive upside, it could be a compelling long-term pick.

BetaShares Australian Momentum ETF (ASX: MTUM)

Finally, the BetaShares Australian Momentum ETF takes a unique approach by investing in Australian stocks that are showing strong share price momentum. This rules-based strategy captures the market’s current leaders.

At present, the ASX ETF includes stocks such as Qantas Airways Ltd (ASX: QAN), Coles Group Ltd (ASX: COL) and Wesfarmers Ltd (ASX: WES).

Momentum strategies have historically outperformed over long periods by consistently rotating into whichever sectors and stocks are delivering the strongest returns. This gives the fund an important advantage: it adapts automatically. As new leaders emerge, the ETF adjusts its holdings accordingly.

For investors seeking a dynamic, performance-driven strategy, this is arguably one of the most interesting ETFs on the ASX. It was also recommended by analysts at Betashares.

The post 3 ASX ETFs to buy now for explosive long-term growth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Coinbase Global. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With December just around the corner, it’s a great time to take stock of our investing markets and check out which ASX shares look ripe to add to a stock portfolio. Despite a rebound last week, the markets are still down from their October records.  I thought it would be a great opportunity to check out some Australian dividend stocks.

So today, let’s talk about five ASX dividend stocks that I think would serve an income-focused portfolio well right now.

Five Australian dividend stocks to put under the tree this December

Coles Group Ltd (ASX: COL)

I’ve long thought of Coles as a winning Australian dividend stock. For one, it offers a defensive nature as a price-focused provider of food and household essentials. For another, it has a strong income track record, having delivered an annual dividend increase every year since 2018.

Coles shares did go on a big run this year, but have since pulled back. That’s boosted this dividend stock’s yield back over 3% at recent pricing. Coles shares have historically come with full franking credits attached too.

Australian Foundation Investment Co Ltd (ASX: AFI)

AFIC is a listed investment company (LIC) and Australian dividend stock that has been on the ASX for decades. Over this time, investors have come to appreciate this stock’s conservative investing style, which AFIC uses to manage a vast underlying portfolio of Australian blue chips, complemented by some international shares.

AFIC already trades on an attractive (and fully franked) yield of around 3.7%, but has recently confirmed that investors will enjoy two special dividends over 2026.

Telstra Group Ltd (ASX: TLS)

I think Telstra offers income investors many of the desirable attributes that Coles does. The mobile and internet services that Telstra provides are essential in today’s world, and Telstra has a long-held leading position in providing them across the Australian market.

This legendary Australian dividend stock has long been an income staple for good reason. Today, it offers a decent dividend yield of 3.88%, which has also always come fully franked.

MFF Capital Investments Ltd (ASX: MFF)

There aren’t too many ways ASX investors can invest in US stocks and get a fully franked dividend. But this LIC is one of them. Like AFIC, MFF holds an underlying portfolio of shares that it manages on behalf of its investors. Unlike AFIC, though, MFF mostly invests in US stocks, following a Buffett-inspired playbook of buying quality companies at compelling prices and holding them indefinitely. Some of its long-term holdings include Amazon, Mastercard, Alphabet, and Visa.

Since MFF is domiciled in Australia, though, it pays tax here and thus has the capacity to fully frank its dividends. At present, this dividend stock is trading on a yield of about 3.5%.

Wesfarmers Ltd (ASX: WES)

Our final Australian dividend stock today is another income favourite in Wesfarmers. This company’s strength arguably comes from its diversity. It is most famous for its highly successful retailers like Bunnings and Kmart. But Wesfarmers also owns a wide range of other businesses, spanning from healthcare and mineral processing to fertilisers and chemicals.

Wesfarmers has a stellar track record of delivering both growth and rising dividends for shareholders over many decades. Today, its shares trade with a fully franked yield of about 2.5%.

The post 5 best Australian dividend stocks to buy in December appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Mastercard, Mff Capital Investments, Visa, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Visa, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Mff Capital Investments, Visa, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

QBE Insurance Group Ltd (ASX: QBE) shares could be in the buy zone following its quarterly update.

That’s the view of analysts at Bell Potter, which have just upgraded the insurance giant’s shares.

What is the broker saying?

Bell Potter was relatively pleased with the company’s quarterly update, noting that management has reaffirmed its guidance for a combined operating ratio (COR) of 92.5%. It said:

The Q3 update was benign and much as we expected. The company continues to expect an attractive COR of 92.5% for FY25, and this expected to continue into FY26. Gross Written Premium rose to $18.6bn an increase of 6% at the headline, and excluding rate increases this is 5% underlying, or 6% excluding the $250m of US noncore run-off and crop rates.

Rate increases continue to be weak around ~1.5% in the 9m, or around 4% excluding property. This compares with 2% at the HY. The company did not disclose rating trends by geography and quarter as it has done in previous years. Using a weighted average of Q1, Q2 and Q3, we estimate group renewal rates would have been around -1% year-on-year in Q3.

Three reasons to buy QBE shares

Bell Potter has upgraded QBE’s shares to a buy rating for three key reasons.

These include capital returns, management confidence in its COR outlook, and its fair valuation. It explains:

We move our recommendation to buy on three improvements. 1/ The return of capital to shareholders, which switches the capital equation from retaining capital for growth, to writing for profit and RoCE. 2/ Management remains confident about writing at a 92.5% CoR in FY26, seeing options to maintain profitability. 3/ The valuation is much less stretched, with the shares at 1.5x FY26 NAV with an RoE of 15.5%. The share price is now in buying territory. We increase our assumptions, improving the COR ratio by 66bps in FY25, and 86bps in FY26. Our forecast EPS increases by 4.1% for FY25, 6.6% for FY26, and 0.5% for FY27.

According to the note, the broker has put a buy rating (from hold) and $21.80 (from $21.20) price target on its shares. Based on its current share price of $19.25, this implies potential upside of 13% for investors over the next 12 months.

In addition, Bell Potter is expecting a 4.8% dividend yield over the period, which boosts the total potential return to almost 18%.

The post 3 reasons to buy QBE shares in December appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.

ASX 200 tech shares may have finally found their floor after a dramatic 22.5% tumble for the sector over the past 10 weeks.

Technology led the 11 market sectors last week with a 5.96% gain over the five trading days.

The benchmark S&P/ASX 200 Index (ASX: XJO) was also buoyant, rising 2.35% to close at 8,614.1 points on Friday.

Ten of the 11 market sectors finished the week in the green.

Let’s review.

ASX tech shares led the market last week

The S&P/ASX 200 Information Technology Index (ASX: XIJ) went into a downward spiral after reaching a new record on 19 September.

The tech index closed at 2,370 points on Friday, representing a 22.5% fall over 10 weeks.

Concerns over US tech stock valuations and whether artificial intelligence (AI) is creating a market bubble explain only part of the story.

Wilsons Advisory equity strategist Greg Burke says domestic factors are mostly to blame for the sell-off in ASX 200 tech shares.

High valuations and a sell-off in Aussie bonds amid virtually no chance of another interest rate cut this year have also played a role.

Here’s how the biggest ASX 200 tech companies performed last week, and how much their share prices have fallen since 19 September.

5 biggest tech stocks down 20% (or more) since September

The WiseTech Global Ltd (ASX: WTC) share price ripped 11.04% higher to close at $73.02 on Friday.

The largest tech company on the market has lost almost a quarter of its market capitalisation since the sector’s peak on 19 September.

The Xero Ltd (ASX: XRO) share price lifted to $122.25, up 2.54% last week and down 25% since the tech sector’s high.

TechnologyOne Ltd (ASX: TNE) shares rose 1.93% last week to $30.10. That represents a 21.5% fall since 19 September.

Nextdc Ltd (ASX: NXT) shares edged 0.44% higher to $13.57 last week, down 24% since the tech sector’s peak.

The Life360 Inc (ASX: 360) share price finished the week at $40.43, up 10.74% for the week and down 22% since 19 September.

The Codan Ltd (ASX: CDA) share price rose to $30.85, up 7.53% last week and up 2.93% since the sector’s high.

Megaport Ltd (ASX: MP1) shares soared 12.69% to $14.30 last week. The stock has slipped by less than 5% since the peak.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 tech shares fight back after 10 weeks of decline 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 Life360, Megaport, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Life360, WiseTech Global, and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For investors focused on the long-term, there are a handful of ASX growth shares today that have the potential to become significantly larger businesses by 2035.

But which ones could be buys today?

Here are three that analysts think stand out as future giants in the making:

Life360 Inc. (ASX: 360)

Life360 has transformed from a family-tracking app into a high-growth global subscription platform. Its growth metrics remain exceptional: paying circles are rising sharply, monthly active users continue climbing past 90 million, and the company is generating growing profitability alongside strong operating cash flow.

What makes Life360 particularly compelling is its enormous addressable market. The company’s platform naturally lends itself to premium features such as safety tools, roadside assistance, data services, and partnerships. And with less than a fraction of its global user base currently monetised, the runway ahead is long. It is also only at the beginning of monetising its free users through its new advertising business.

Bell Potter is bullish on the company’s outlook. So much so, it recently put a buy rating and $52.50 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that could be destined for big things is NextDC.

It is a leading data centre operator that is building the infrastructure powering Australia’s digital economy. Demand for cloud computing, AI, data processing and storage is surging, and NextDC sits at the centre of it.

The company continues to expand its high-capacity data centre footprint across major Australian cities, while securing long-term contracts with hyperscale cloud providers and enterprise customers. This gives NextDC recurring, inflation-linked revenue, strong retention rates and visibility well into future years.

Data usage isn’t slowing. If anything, AI models, automation and high-bandwidth applications are accelerating the need for secure, energy-efficient data storage. Few ASX businesses are as well-positioned for this infrastructure megatrend as NextDC.

UBS is a fan of NextDC and has a buy rating and $21.45 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Finally, Temple & Webster has quietly become Australia’s leading online furniture and homewares retailer. While the broader retail sector has faced pressure from cautious consumer spending, Temple & Webster continues taking market share thanks to its digital-first model, growing private-label range and efficient logistics network.

In Australia, online furniture penetration lags behind that in the US and Europe. This gives Temple & Webster a multi-year growth opportunity as more consumers shift to online shopping for big-ticket items. In light of this, the company could be many times larger in 2035 than it is today.

Last week, Morgan Stanley put an overweight rating and $28.00 price target on its shares.

The post 3 ASX growth shares that could be future giants appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360, Nextdc, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock Pinnacle Investment Management Group Ltd (ASX: PNI) has seen a 28% decline (at the time of writing) since 7 August 2025. There are not many compelling ASX dividend shares that have fallen as much as that in the last few months.

I think it’s exciting when a dividend-paying business falls. We’re able to buy them at a lower price, but the dividend yield on offer also increases.

For example, if a business had a dividend yield of 4% and the share price drops 10% then the yield becomes 4.4%. A 20% decline would result in a dividend yield of 4.8% for prospective investors.

If you haven’t heard of Pinnacle before – it’s an investment business that takes stakes in impressive funds management businesses (affiliates) and helps them grow. It assists their growth with numerous behind-the-scenes services (such as fund administration, compliance, legal, and so on), allowing the fund manager to focus on just investing – the most important part for clients.

Following a 28% decline in the share price, the Pinnacle dividend yield has materially increased. That’s the first appealing aspect of the business I want to highlight.

Good dividend yield

For an ASX dividend stock to be worthwhile for an income investor, I think it needs to have a solid starting yield.

The latest annual dividend per share from the business was 60 cents in FY25. At the current Pinnacle share price, this translates into a cash dividend yield of 3.3% and a grossed-up dividend yield of nearly 4.5%, including franking credits.

While that’s not the biggest dividend yield around, it’s comparable with some of the best term deposit rates out there right now for Australians.

But, Pinnacle isn’t a term deposit – it has growth potential.

Consistent ASX dividend stock

There are plenty of high-profile businesses that have cut their dividends in the last several years. But not Pinnacle.

Between FY16 and FY25, there was only one year in which the dividend didn’t increase. The company maintained its payout in FY20 when there was a huge amount of COVID uncertainty affecting economies and share markets.

Pleasingly, the business is projected to continue growing its payout in the coming financial years.

According to the projection on CMC Markets, the company is forecast to increase its FY26 payout to 66.5 cents per share and then to 81 cents per share in FY27. Including franking credits, those estimations translate into potential grossed-up dividend yields of 5% and 6.3%, respectively.

Earnings growth potential

One of the main reasons I’m attracted to this business and have recently invested in it is the quality and growth of its funds under management (FUM).

The affiliates largely have a long-term track record of outperforming their benchmarks, which is a powerful tool for growing FUM organically and attracting further inflows of money from clients.

In the three months to September 2025, affiliate FUM increased by a further $18 billion, or 10%, to $197.4 billion. This was helped by net inflows of $13.3 billion. FUM growth is a key driver of Pinnacle’s earnings, so this bodes well for at least FY26 if not beyond.

The ASX dividend stock is currently trading at around 20x FY27’s estimated earnings, according to the forecast on CMC Markets.

The post 1 ASX dividend stock down 28% I’d buy right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Pinnacle Investment Management Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.