It’s been a tough year for most ASX tech shares.

Not to mention their stockholders.

Indeed, while the All Ordinaries Index (ASX: XAO) was recently up a bit more than 1% in 12 months, the S&P/ASX All Technology Index (ASX: XTX) has fallen almost 27% over this same period.

ASX tech shares have faced headwinds on several fronts.

First, the last year has seen central banks the world over pivot from lowering interest rates to hiking them, or at the very least staying put. And growth shares like tech companies, which are often priced with higher future earnings in mind, tend to be sensitive to any moves in borrowing costs.

The tech sector has also taken a hit from a development of its own devising. Namely AI.

In what you may have heard called the ‘SaaSpocalypse’, a lot of Aussie and global technology stocks came under pressure amid investor concerns that AI could potentially replace the services these companies currently provide.

Now, that’s the year just past.

Looking ahead, Red Leaf Securities’ John Athanasiou has drilled into two ASX tech shares he believes are well-placed to outperform (courtesy of The Bull).

ASX tech share primed for a rebound

First up we have Atturra (ASX: ATA), whose shares were recently down around 52% over 12 months, trading for 39 cents apiece.

Which could make now an opportune time to buy.

“Atturra is an AI-driven technology integrator,” Athanasiou said. “It’s focusing on organic growth after integrating a number of acquisitions.”

Turning to some key financial metrics, he noted:

Underlying EBITDA [earnings before interest, taxes, depreciation and amortisation] in full year 2026 is expected to range between $30 million and $30.5 million, which is in line with guidance, while second half operating cash flow is expected to reach between $22 million and $23 million.

Summarising his buy recommendation on the ASX tech shares, Athanasiou concluded:

Atturra plans to invest an additional $3 million in AI, while its SAP business is forecast to grow by more than 50% between fiscal years 2026 and 2027.

If management successfully executes its fiscal year 2027 strategy, Atturra’s earnings profile should materially strengthen.

Which brings us to…

Tech company on the growth path

Athanasiou also issued a buy recommendation on DUG Technology Ltd (ASX: DUG).

Shaking off the broader malaise dragging on the tech sector, DUG shares were recently up around 26% over 12 months, trading for $2.00 apiece.

“This software solutions company is building strong momentum in response to improving revenue, margins and cash flow,” Athanasiou said.

Explaining his buy recommendation on this ASX tech share, he said:

Revenue of US$62.7 million rose 39% in the first nine months of fiscal year 2026. Normalised EBITDA almost doubled to US$20.9 million. Operating cash flow reached US$23.7 million and DUG moved from net debt a year earlier to $US11.4 million in net cash. The earnings mix is also improving.

Demand for DUG’s proprietary MP-FWI imaging technology remains strong, while recurring 4D projects add further revenue visibility. Given accelerating growth, improving cash generation and a stronger balance sheet, DUG remains an attractive technology exposure.

The post Expert names 2 ASX tech shares to buy today appeared first on The Motley Fool Australia.

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

The share market naturally draws attention towards businesses promising rapid growth or the next major breakthrough.

But building wealth does not always require that sort of excitement.

I think some of the best long-term investments can be companies doing fairly ordinary things, provided they keep doing them well for many years.

Coles Group Ltd (ASX: COL)

Selling groceries is hardly a new business idea.

But that is one reason I like Coles as a long-term investment. Australians need food regardless of which technology trend is dominating the headlines or where we are in the economic cycle.

The opportunity comes from improving a huge existing operation.

Coles has invested heavily in automated distribution and fulfilment centres, which can help move products more efficiently through its network and support the continued growth of online shopping.

Even modest improvements can become meaningful when they are applied across hundreds of stores and millions of customer visits.

I think Coles can continue growing earnings by making its operations more efficient, improving the shopping experience, and serving a gradually expanding Australian population.

Transurban Group (ASX: TCL)

Toll roads are another business that may not generate much excitement, but I think the economics can be attractive over long periods.

This ASX share owns and operates major roads in Australia and North America.

These are pieces of infrastructure used by commuters and businesses every day, often in cities where congestion makes additional road capacity valuable.

Traffic can grow as populations increase, while toll prices generally rise according to agreements attached to each road.

Transurban can also invest in expansions and new projects when suitable opportunities arise.

I think that gives the business a fairly straightforward way to become more valuable over time.

For shareholders, dividends can provide income along the way, while the underlying road network remains difficult for competitors to recreate.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare provides pathology and diagnostic services across several countries. Again, I wouldn’t say there is anything fashionable about this.

Doctors need tests to diagnose illnesses, monitor patients, and make treatment decisions. As populations grow and age, I think the amount of diagnostic testing required over time should increase.

This ASX share has built a large global network of laboratories and medical professionals, allowing it to serve healthcare systems at significant scale.

The company can also continue expanding through M&A, an approach it has used for many years.

For me, this is the sort of business that does not require extraordinary assumptions about the future. If demand for healthcare keeps increasing and Sonic continues operating well, there should be opportunities to grow.

Foolish takeaway

I would never dismiss an ASX share investment simply because the underlying business sounds boring.

Groceries, toll roads, and pathology testing all solve needs that are unlikely to disappear anytime soon.

If a company can keep serving those needs, reinvest sensibly, and increase earnings over many years, shareholders can still end up with an excellent result.

That is the type of quiet compounding I would be happy to have working in my portfolio.

The post Why I think these boring ASX shares could build serious wealth appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended Sonic Healthcare. 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 just delivered an FY26 result that strengthens my confidence in its long-term growth story.

The company is investing heavily to meet rising demand for data centre capacity, and artificial intelligence is giving that opportunity another powerful push.

For me, the latest numbers support a buy.

The forward order book is the standout

I think the most important figure in NEXTDC’s FY26 result was not revenue or profit.

It was the 565MW forward order book, up sharply over the year. This represents contracted capacity that has not yet started billing, and every megawatt is backed by a binding customer commitment.

I think this gives investors much better visibility over where growth can come from next.

NEXTDC expects 197MW of that capacity to begin billing in FY27 and another 221MW in FY28. Together, that would convert almost three-quarters of the current forward order book within two years.

The company estimates its existing contracted utilisation could eventually generate more than $1 billion of EBITDA, without assuming any additional customer wins.

For me, that shows just how much growth is already locked into the pipeline.

Artificial intelligence is changing the scale of demand

The artificial intelligence (AI) boom is a major reason I think NEXTDC can keep growing beyond those existing commitments.

Training and running advanced AI models requires enormous amounts of computing power, which in turn creates demand for data centres capable of handling high-density workloads.

NEXTDC says AI, cloud providers, hyperscalers, and newer specialised cloud operators are all contributing to strong demand. Its facilities are being designed for advanced computing environments, including the higher power densities and cooling requirements associated with AI infrastructure.

This is not simply a case of hoping AI demand eventually arrives. NEXTDC’s contracted utilisation has already climbed to 740.1MW on a pro forma basis, more than triple the level a year earlier.

I think that provides tangible evidence that customers are committing significant capital to this infrastructure now.

FY27 could show the next step

Management expects FY27 net revenue to rise by 52% to 58%, while underlying EBITDA is forecast to increase by 55% to 65%.

Those are substantial growth rates for a company already operating data centres across Australia and expanding internationally.

There are risks. NEXTDC expects to spend between $5.25 billion and $5.75 billion in FY27, making execution, financing, construction, and access to power important areas to watch.

But much of that spending is being directed towards capacity customers have already contracted.

Foolish takeaway

I would buy NEXTDC shares following the FY26 result.

The AI boom is creating enormous demand for computing infrastructure, and NEXTDC now has a record amount of contracted capacity waiting to become revenue.

The investment will require patience as the company builds that capacity, but I think the scale of the opportunity has become much clearer.

If NEXTDC delivers on its current pipeline and keeps winning AI-related demand, I believe it could be a considerably larger business by the end of the decade.

The post Would I buy NEXTDC shares after its strong FY26 results? appeared first on The Motley Fool Australia.

More reading

• 2 ASX data centre stocks rated a buy
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• NEXTDC share price in focus after record FY26 earnings and strong outlook
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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.