Category: Stock Market

Commonwealth Bank of Australia (ASX: CBA) and Wesfarmers Ltd (ASX: WES) are often seen as two of the highest-quality shares on the ASX.

I can understand why. Both have strong positions, long track records of success, and attract plenty of investor attention.

But quality does not stop there. There are other ASX shares with durable customer relationships, strong market positions, and the ability to compound over time.

If I were looking beyond CBA and Wesfarmers, these are three quality ASX shares I would consider buying.

Reece Ltd (ASX: REH)

Reece is one of those businesses that can look plain from a distance and more impressive up close.

The company supplies plumbing, bathroom, heating, ventilation, air conditioning, and waterworks products to trade customers. That may not sound glamorous, but the business sits inside an important part of the economy.

Plumbers and contractors need product availability, speed, reliability, and technical support. A delayed part can delay a job, upset a customer, and cost money. That gives a trusted supplier a meaningful role in the daily work of its customers.

I think that is one of Reece’s strengths. It has spent decades building relationships, branch networks, systems, and product knowledge. Those things are hard to copy quickly.

The US opportunity also makes the story more interesting. Reece has a much larger market to pursue, and success there could support growth for many years.

Housing cycles will still affect demand, and international expansion is rarely smooth. But I like businesses that can keep improving through better service, better systems, and deeper customer relationships.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat is another quality ASX share I would consider.

The gaming company has built a global business around content, hardware, mathematics, design, and customer insight.

It is easy to think of gaming as purely a consumer business, but I see Aristocrat as a product development company with valuable intellectual property. It has to keep refreshing its content pipeline, improving cabinets, understanding player behaviour, and helping customers earn returns from their floor space.

It delivers on this by investing around 12% of revenue in R&D activities each year. And with Aristocrat consistently reporting a strong return on invested capital, this money isn’t being wasted.

The balance sheet also gives Aristocrat flexibility. A strong financial position can support investment, acquisitions, and capital returns when conditions allow.

Regulation and digital competition remain important risks. Still, I think Aristocrat’s track record, product engine, and global reach make it one of the more interesting quality businesses on the ASX.

Hub24 Ltd (ASX: HUB)

Hub24 is the wealth platform share I would include.

Australia’s wealth management industry is still changing. Advisers need better tools, clients expect clearer reporting, and portfolios are becoming more personalised.

Hub24 is one of the businesses helping that shift happen. Its platform gives advisers a way to manage administration, reporting, managed accounts, and investment portfolios more efficiently. That can make advice practices easier to run and help clients receive a better experience.

I like that Hub24 is connected to a large pool of Australian wealth. Superannuation, retirement planning, intergenerational wealth transfer, and demand for advice can all support long-term platform growth.

The business is exposed to market movements and competition, so valuation discipline is still important. But I think Hub24 has the type of usefulness that can support a high-quality growth story.

Foolish takeaway

CBA and Wesfarmers deserve their reputations, but they are not the only ASX shares with quality characteristics.

That is why I like looking at businesses such as Reece, Aristocrat, and Hub24. They operate in very different markets, yet each has built a position that would be difficult to recreate quickly.

For long-term investors, quality can show up in many forms. It can be a trade supplier with deep customer relationships, a gaming company with a strong product engine, or a wealth platform becoming more embedded in adviser workflows.

Those are the kinds of strengths I think are worth paying attention to beyond the most familiar ASX names.

The post 3 quality ASX shares I’d buy (that aren’t CBA or Wesfarmers) appeared first on The Motley Fool Australia.

More reading

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• If I invest $5,000 in Wesfarmers shares, what passive income will I get in 2027?
• How much is needed in superannuation to target an $11,000 monthly passive income?
• 5 ASX growth shares I want in my portfolio in FY27
• 3 ASX shares I’d buy for long-term wealth creation

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia, Hub24, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Wesfarmers. The Motley Fool Australia has recommended Hub24 and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) shares have come under pressure recently.

The iron ore miner is trading around $19.27 at the time of writing, down from its 52-week high of $23.38. The share price has also fallen by around 12% over the past month.

That kind of pullback can make a high-profile share look tempting. Especially given that Fortescue has a long history of generating big cash flows when iron ore prices are strong.

But investors may need to look beyond the first-year numbers before deciding whether this is a bargain.

The valuation looks cheap at first

On near-term forecasts, Fortescue does look reasonably priced.

According to CommSec, consensus estimates point to earnings per share of $1.75 in FY26. Based on the current share price, that puts Fortescue on a price-to-earnings (P/E) ratio of about 11 times FY26 earnings.

That is not demanding on the surface.

The dividend also looks attractive. CommSec estimates dividends per share of $1.20 in FY26, implying a forward dividend yield of around 6.2%.

For income-focused investors, that number may stand out. A 6%-plus yield from a major ASX mining share can look appealing, especially for investors who believe iron ore prices can remain supportive.

But the real question is whether those numbers can last.

The forecasts get tougher

The issue is what happens after FY26.

CommSec consensus estimates suggest Fortescue’s earnings per share could fall to $1.44 in FY27 and $1.04 in FY28. At the current share price, that would lift the P/E ratio to around 13.4 times FY27 earnings and 18.5 times FY28 earnings.

That changes the picture.

The share may look cheap on FY26 earnings, but it looks much less cheap if profits fall as expected over the following two years.

The same applies to the dividend.

CommSec estimates dividends per share of 95.3 cents in FY27 and 67.7 cents in FY28. That implies yields of roughly 4.9% and 3.5%, respectively, based on the current share price.

A 6.2% forecast yield is attractive. A 3.5% yield from a highly cyclical iron ore miner is a different proposition.

That is why I think Fortescue has some value trap characteristics at current levels.

Why I’m cautious

Fortescue remains a very successful company. It has built a world-class iron ore business and has rewarded shareholders well over time.

But I think investors need to be careful when buying miners, mainly because the near-term yield looks high.

Iron ore earnings can move quickly. Prices, demand from China, shipping costs, currency movements, and operating costs can all affect profits. If earnings are already expected to decline, investors need to be comfortable with the possibility that dividends may also become less generous.

Fortescue is also spending heavily on future growth and energy ambitions. That may create opportunities, but it also adds another layer of execution risk.

For me, the cleaner mining exposure remains BHP Group Ltd (ASX: BHP).

BHP has broader commodity exposure, including copper, which I think has stronger long-term demand support from electrification, power grids, data centres, and energy infrastructure. It also has a larger and more diversified asset base.

Fortescue may still perform well if iron ore prices stay higher than the market expects. But if I were choosing between the two, I would prefer BHP shares.

Foolish Takeaway

Fortescue shares may look cheap after their recent fall, especially on FY26 earnings and dividend forecasts.

But the later-year estimates make me cautious. If earnings and dividends decline as expected, the valuation becomes less compelling, and the income appeal fades.

That does not make Fortescue a poor business. It does mean the current setup looks less attractive than the headline numbers suggest.

For investors wanting ASX mining exposure, I would avoid Fortescue shares for now and look more closely at BHP instead.

The post Are Fortescue shares a strong buy or a value trap? 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to superannuation, having a goal in mind for when you want to retire and what sort of income you’re aiming for is a great start.

The sooner you start planning for retirement, the sooner you start to reap the benefits of compound interest and potentially tax-effective ways to save.

Why $1000 a week?

I’ve selected a figure of $1000 per week, or $52,000 per year, because it’s not far off the Association of Super Funds of Australia (ASFA) figure of $55,923 a year, which they say is needed for a single person who owns their own home to have a comfortable retirement.

So what exactly do they mean by comfortable?

This involves being able to afford top-level health insurance, a reasonable car, fast broadband, appropriate devices, regular leisure activities, an annual domestic trip, and an overseas holiday every 7 years.

It’s not an abundant lifestyle, but it definitely fits the “comfortable” bill.

So how much would you need in your superannuation to deliver an income stream to afford such a lifestyle?

It all depends on the dividend yield you are receiving from your stocks.

According to S&P Dow Jones, the S&P/ASX 200 Index (ASX: XJO) delivered an average trailing dividend yield of 4.15% from July 2011 to December 2024.

But this includes plenty of companies that pay low or no dividends. It’s quite possible to aim for a portfolio which delivers a dividend yield of around 5%, while also including some companies which pay a lot more.

In terms of companies that are in the ballpark, three to consider are APA Group (ASX: APA), Amcor Plc (ASX: AMC), and Regal Partners Ltd (ASX: RPL).

For the first two, both companies are operating in markets where they have a dominant position and are unlikely to be disrupted in a hurry by new technology.

Broker Morgans recently issued a research note on Amcor, which said the company will pay a dividend yield of 6.3% this year, then likely rise to 6.6% by FY28.

Regarding gas pipeline operator APA, Jarden has forecast that they will increase their dividend from 58 cents this year to 60 cents by FY28, for a 6.5% dividend yield.

Regal Partners, meanwhile, is expected to pay a dividend yield of 6.2% this year, rising to 7.6% by 2028, according to Bell Potter, which also predicts significant capital returns, with the company’s shares expected to increase to $4.70, up from $2.89.

How much superannuation do you need?

So, back to the calculations of how much super you’d actually need to generate $52,000 a year, the figure sits at $1.04 million if you’re working off a 5% dividend yield, and no drawdown of your nest egg.

So what if you want to boost your super now?

If you’re looking to maximise your superannuation contributions and potentially reduce your tax bill, it’s worth having a look at the amount of concessional contributions you have made and whether you can top that up.

Concessional contributions are contributions made to superannuation from your before-tax salary, and include the super guarantee contributions made by your employer, which are 12% of your salary.

Each financial year, you are allowed to make concessional contributions of up to $30,000. Extra contributions made beyond what your employer contributes can serve to reduce your tax load, as contributions are taxed at 15%. 

In terms of figuring out how much extra you can put into your super in this way, it is possible to keep track of your concessional contributions by using the Australian Taxation Office’s online services.

Your superannuation fund might also be able to show you where you stand with regard to concessional contributions.

If you do put extra into your super and want it to be a concessional contribution, you also need to lodge a notice of intent to claim, which alerts your super fund that it is a concessional contribution, and they will take the 15% tax out as necessary.

This is necessary as it is also possible to make non-concessional contributions of up to $130,000 per year.

The post How much do I need in my superannuation to get $1000 per week in passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 positions in and has recommended Amcor Plc and Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The modern economy is becoming more digital every year.

This creates opportunities for companies that sit inside these changes.

But where are the opportunities for investors?

Here are three ASX tech shares that could be well placed for a more digital world.

NextDC Ltd (ASX: NXT)

NextDC gives investors exposure to the physical backbone of the digital economy.

It develops and operates data centres, which are used by businesses, cloud providers, technology companies, and other organisations that need secure and reliable infrastructure for their data and computing workloads.

That makes NextDC a different kind of technology share. It is not selling apps or software. It is providing the highly specialised facilities that help keep the digital world running.

Demand for data centre capacity is being supported by cloud computing, artificial intelligence, enterprise digitisation, and the rising volume of data being created across the economy.

These facilities are difficult to build well. They require large amounts of capital, technical expertise, power access, cooling capability, security, and strong operating standards. That creates a meaningful barrier to entry.

Morgans recently put a buy rating and $18.00 price target on its shares.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is an ASX tech share that gives investors exposure to the digital side of healthcare.

Its Visage platform helps hospitals and radiology groups manage, view, and interpret medical images. That is important because modern healthcare produces enormous amounts of imaging data. Scans need to move quickly, load reliably, and be available to clinicians when decisions are being made.

Pro Medicus has built a strong reputation in this market, particularly with large healthcare networks overseas. Its software is not just a nice extra for its customers. It can sit close to the daily workflow of radiologists and hospitals.

And with the long-term need for better medical imaging infrastructure only likely to increase as healthcare systems become more digital, Pro Medicus appears well-placed for long-term growth.

Bell Potter recently put a buy rating and $226.00 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the ASX’s strongest enterprise software businesses.

It provides software used by large organisations such as councils, universities, government bodies, and corporations.

These customers need systems that can help manage finance, payroll, planning, assets, projects, and administration. The work happens behind the scenes, but it is essential to how these organisations function.

This gives TechnologyOne an attractive position. Its software can become deeply embedded in customer operations, which can make relationships sticky and support recurring revenue over time.

And with the company’s international expansion gaining momentum, it appears well-placed for growth over the long-term.

Morgan Stanley has an overweight rating and $32.00 price target on its shares.

The post 3 buy-rated ASX tech shares with bright futures appeared first on The Motley Fool Australia.

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Telix Pharmaceuticals, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Although not quite as popular as some blue chips, namely the ASX bank shares, ASX investors do tend to consider energy shares as a dividend income investment. Perhaps none more so than Woodside Energy Group Ltd (ASX: WDS) shares.

Woodside is, by far, the largest energy stock on the ASX, boasting a market capitalisation (at least at the time of writing) of about $53.35 billion. It is an oil and gas heavyweight in the energy space, thanks in part to its acquisition of BHP Group Ltd (ASX: BHP)’s petroleum assets a few years ago.

Oil stocks like Woodside do often have the potential of offering high levels of dividend income, at least over parts of the economic cycle. After all, oil prices are highly volatile (as we’ve all experienced over the past few months), and as such, energy stocks’ profits, and ability to fund dividends, tend to fluctuate accordingly.

But let’s get into what kind of yield investors can expect from Woodside shares in mid-2026.

Woodside shares: What kind of dividend yield is on offer today?

At the time of writing, Woodside shares are trading at $28.22 each, down a hefty 1.5% for the day thus far. At this price, the ASX 200 energy stock is trading on a trailing dividend yield of 5.87%.

5.87% is obviously a pretty fat yield. It stems from the last two dividend payments Woodside has doled out to its shareholders. The first of those was the interim payment of 81.82 cents per share (from 53 US cents) that was distributed in September last year. The second was this March’s final dividend, worth 83.49 cents per share (59 US cents).

Together, this 12-month total of $1.65 per share gives Woodise that trailing yield of 5.87% at the current share price.

Both of these dividends came with full franking credits attached as well. That means this 5.87% yield grosses up to an impressive 8.39% with the value of those credits included.

However, all dividend stocks are inherently unreliable income payers, and Woodside is particularly so for the reasons discussed above. To illustrate, the company’s $1.65 dividend total over the past 12 months pales in comparison to the $3.75 or so investors enjoyed for the 2022 financial year.

As such, I think Woodside is a worthy candidate for inclusion in any well-balanced and diversified portfolio that prioritises maximising dividend income. However, investors should never take this company’s dividend yield as an indication of what they might receive going forward. When the oil market stars align, Woodside has shown it can be a generous investment. But when times are tough, expect the taps to turn down.

The post Buying Woodside shares? Here’s the dividend yield you’ll get today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Cochlear Ltd (ASX: COH) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) hearing solutions company closed yesterday trading for $112.78. In early afternoon trade on Wednesday, shares are changing hands for $114.44 apiece, up 1.5%.

For some context, the ASX 200 is up 0.3% at this same time.

Unfortunately for longer-term stockholders, today’s outperformance is not par for the course for Cochlear shares, which have plunged 61.5% over the last 12 months.

And while Cochlear did pay two partly franked dividends over this time, the stock’s 3.8% trailing dividend yield won’t do much to ease those capital losses.

But with the ASX 200 stock down more than 60% in a year, is now the time for brave investors to pounce on a potential long-term bargain?

The bearish case for Cochlear shares

Peak Asset Management’s Niv Dagan recently analysed the outlook for the ASX 200 hearings solutions company (courtesy of The Bull).

Commenting on the more recent selling pressure, he noted:

In April, the hearing implants maker materially reduced its fiscal year 2026 underlying net profit guidance to between $290 million and $330 million from between $435 million from $460 million in February.

The downgrade was a response to weaker than expected demand in developed markets amid Middle East uncertainty, lower margins and foreign exchange headwinds.

And Dagan expects Cochlear shares are likely to face ongoing headwinds over the medium term. Summarising his sell recommendation on the ASX 200 stock, he concluded:

Hospital capacity constraints amid softer consumer sentiment and reduced referral activity are weighing on implant volumes, while cost base restructuring is likely to impact earnings in the near term.

A more upbeat outlook for the ASX 200 stock

Bell Potter Securities’ Christopher Watt also recently ran his slide rule over the beleaguered hearing solutions company.

And he sounded a more optimistic note on Cochlear’s outlook.

“The long-term opportunity for this hearing implants maker remains compelling, supported by a large addressable market, strong brand position and an attractive product pipeline,” Watt said.

But Watt isn’t ready to pull the trigger just yet, issuing a hold recommendation on Cochlear shares.

According to Watt:

However, near term trading conditions have softened in response to weaker referral activity in the US, hospital capacity constraints in Europe and reimbursement changes in China. Until there’s clearer evidence that volumes are stabilising, a more balanced stance is appropriate.

The long-term growth story and product pipeline remain intact.

Cochlear shares have enjoyed a strong rebound over the past month, up 17.8% since 25 May.

The post Down 62%, should I buy Cochlear shares now? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bernd Struben 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 Cochlear. The Motley Fool Australia has recommended Cochlear. 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 have climbed around another 1% higher in Wednesday lunchtime trade. At the time of writing, the shares are changing hands at $24.57 a piece. At one point, the share price reached as high as $24.60.

Today’s increase follows a strong share price rally so far in 2026, and marks the highest trading price in nearly 16 years.

The financial shares are now over 24% higher for the year to date, and around 5% higher than 12 months ago.

What has driven QBE shares higher?

QBE shares have been climbing higher on the back of support from a stronger insurance earnings backdrop and higher premiums.

Last month, the company posted its first-quarter FY26 update, revealing an 11% year-on-year increase in gross written premium (GWP), or 7% on a constant currency basis. 

The insurer reported total funds under management of $36.1 billion at the end of the quarter.

The company also maintained its FY26 outlook, pointing to mid-single-digit gross written premium growth and a group combined operating ratio of around 92.5%.

It looks like many investors were pleased with the update and are continuing to jump on board.

Do brokers rate the insurance stock as a buy, sell, or hold?

Experts are bullish on the outlook for QBE shares over the next 12 months. But it looks like, after the latest rally, a lot of the positive sentiment is already reflected in the share price. 

Market Index shows that the majority of brokers have a buy rating on QBE shares. But the $24.58 average target price implies just a tiny 0.1% upside at the time of writing.

TradingView data shows more diversity in analysts’ sentiment. Of 11 analysts, seven have a buy or strong buy rating, two have a hold rating, and two rate the shares as a sell.

The average $24.81 target price implies a slightly higher 1% upside at the time of writing. However, some think QBE shares could climb up to 10% higher to $26.91 over the next 12 months.

Investment firm Market Partners is positive about the outlook for QBE shares. It recently noted that QBE has been working hard to simplify its business over the past 5 to 10 years, including a number of acquisitions, and it’s now paying off. The experts said QBE is an emerging turnaround story. 

On the flip side, UBS raised concerns last month about the outlook for QBE shares. It said that there’s potential for a softer insurance pricing backdrop heading into 2027, particularly if premium rate growth loses pace more quickly than expected. 

Meanwhile, Macquarie has a hold rating on QBE shares with a $25.10 price target. 

The post QBE shares soar to fresh multi-year high: Here’s what brokers expect next 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up slightly to 8,792 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are racing higher:

Benz Mining Corp (ASX: BNZ)

The Benz Mining share price is up 25% to $2.65. Investors have been buying the gold explorer’s shares after it announced a maiden exploration target for its 100%-owned Glenburgh Gold Project in the Gascoyne region of Western Australia. Benz Mining’s CEO, Mark Lynch-Staunton, commented: “This initial Exploration Target frames the scale and quality of Glenburgh on a project-wide basis for the first time. Importantly, this is not a loose conceptual target – approximately 80% of the Exploration Target is drill-defined, assay-supported and wireframed, providing a strong technical foundation for resource conversion. […] Glenburgh has the scale and geological architecture to become a major Australian gold project, with the potential to evolve into a world-class gold system.”

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is up 1.5% to $8.24. This may have been driven by a broker note out of Citi this morning. According to the note, the broker has upgraded the quick service restaurant operator’s shares to a buy rating with a $10.30 price target. This implies potential upside of 25% for investors over the next 12 months. Citi made the move on valuation grounds following a sizeable decline from its highs.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is up 15% to $33.00. Investors appear to be buying the logistics software company’s shares after WiseTech responded to recent media reports involving founder Richard White. It stated: “The media reports that the alleged investigation relates to Richard White in a personal capacity. There is no suggestion in this media commentary of an investigation into WiseTech. The Company is not aware of any investigation as outlined in the article. The Executive Chair has provided assurance to the Board that he is not aware of any such investigation and also confirmed that he emphatically and unequivocally denies any involvement in or with human trafficking.”

Xero Ltd (ASX: XRO)

The Xero share price is up almost 9% to $70.69. This may also have been driven by a broker note out of Citi. This morning, the broker reaffirmed its buy rating and $113.60 price target on the cloud accounting platform provider’s shares. This implies potential upside of approximately 60% for investors over the next 12 months.

The post Why Benz Mining, Collins Foods, WiseTech, and Xero shares are shooting higher today appeared first on The Motley Fool Australia.

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

ASX investors were handed a rough lead from Wall Street overnight after US chip stocks were heavily sold down.

The sell-off was centred on some of the biggest names in the artificial intelligence (AI) trade, with investors taking profits after a very strong run.

Overnight, the Nasdaq Composite Index (NASDAQ: .IXIC) fell 2.2%, while the Philadelphia Semiconductor Index (NASDAQ: SOX) dropped 7.9%.

Some of the bigger falls came from the names that have been riding the AI boom.

Micron Technology Inc (NASDAQ: MU) dropped 13% to US$1,051.77, Nvidia Corp (NASDAQ: NVDA) fell 4.1% to US$200.04, while Qualcomm Inc (NASDAQ: QCOM) and Marvell Technology Inc (NASDAQ: MRVL) lost 8% and 9.4%, respectively.

While this might sound like a warning sign for ASX tech shares, the local market has gone the other way today.

At the time of writing, several large ASX tech shares are trading higher, despite the weak US lead.

So, why are ASX tech shares rising?

ASX tech shares move higher

The main reason is that ASX tech shares aren’t really chip stocks.

The overnight selling was focused on US companies closely tied to semiconductors, memory chips, and AI infrastructure.

And that is not quite the same as our local tech sector.

Xero Ltd (ASX: XRO) is an accounting software business. WiseTech Global Ltd (ASX: WTC) provides logistics software, while Pro Medicus Ltd (ASX: PME) sells medical imaging software.

So, while the US sell-off is clearly worth watching, it doesn’t directly change the outlook for most ASX tech names.

There also appears to be some bargain hunting going on.

A number of local tech shares have already been hit hard in 2026, with Xero and WiseTech both under heavy pressure recently.

At the time of writing, Xero shares are up 7.1% to $69.63, while WiseTech shares are up 13.42% to $32.62.

Pro Medicus shares are 2.1% higher at $176.75, and NextDC Ltd (ASX: NXT) shares are up 2.20% to $14.85.

What should ASX investors watch now?

The key thing to watch is whether the selling stays in US chip stocks or starts spreading across the broader US tech sector.

If investors keep taking money out of the AI trade, ASX growth shares could still feel some pressure, especially those trading on higher valuations.

But for now, the local market is holding up reasonably well.

And that is likely because many ASX tech shares have already had a difficult run in 2026.

Xero and WiseTech, in particular, are both still well below where they were a year ago, despite today’s bounce.

The post US chip stocks were smashed overnight. So why are ASX tech shares rising? appeared first on The Motley Fool Australia.

More reading

• ASX tech giants bounce back from heavy losses
• WiseTech shares have crashed: buy, hold, or sell?
• These ASX tech stocks are crashing. Buy or bail?
• These ASX shares are riding the AI boom. Investors keep overlooking them
• 5 ASX growth shares I want in my portfolio in FY27

Motley Fool contributor Aaron Teboneras 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 Marvell Technology, Micron Technology, Nvidia, Qualcomm, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Nvidia and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.