The 9 Best Australian Tech Stocks to Buy Now in 2025

Australia is usually known to have some of the world’s best finance and resource stocks, but it is home to many innovative tech companies as well. Investing in these ASX-listed tech stocks is a good way for investors to diversify and strengthen their investment portfolios.

Similar to many other countries, ASX tech stocks came under pressure due to inflation post-COVID-19 and the hawkish monetary policy adopted by the central bank to curb the price hike. Now, with inflation under control and a monetary policy easing, ASX-listed tech stocks are well poised to benefit from such a macro environment. 

If you are also planning to invest in tech stocks but don’t have time to search, then to help you, this article discusses the best Australian tech stocks. Our list includes companies like Zero, NextDC, WiseTech, and more.

An in-depth look at these top Australian tech stocks

Now that you know which are the best Australian tech stocks, let’s understand what makes them the best ASX tech stocks:

1. Xero Ltd (XRO): Average annualized return of 30%

Xero (ASX: XRO) makes online accounting and business solutions available to small and medium-sized enterprises. The company, which offers its services through a cloud computing platform, has over 3 million subscribers in Australia, New Zealand, and the United Kingdom.

Automating many routine accounting and bookkeeping tasks is a key selling point of Xero’s products. Moreover, to make its services even more useful, the company has integrated it with over 1,000 third-party apps.

Xero’s 2024 financial report shows robust performance in markets with higher cloud penetration, with consistent double-digit revenue growth. The Average Revenue Per User (ARPU) grew by 11% in the same period.  

Xero aims to double its revenue by FY27, and this would be of interest to investors. Goldman Sachs is very optimistic on Xero’s platform quality and has a buy rating on the stock with a price target of $180. Xero’s shares are currently trading above $140. YTD the stock is up almost 31%, while it has gained over 100% in the past five years.

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2. NextDC (NXT): Average annualized return of 19%

NextDC (ASX:NXT) is one of the biggest tech firms globally that help businesses transform through its innovative data centre outsourcing solutions, connectivity services, and infrastructure management software. The company operates a network of data centres across major cities in Australia, providing clients with secure and reliable hosting and interconnection services.

Founded in 2010, the company correctly anticipated the need for more data centers, making it the biggest data center stock on the ASX. Even after fourteen years, the company seems well-positioned to benefit from the growing demand of data centers, which in turn is driven by the shift to the cloud and the artificial intelligence boom.

For the full year 2024, the company reported revenue of AU$404.3 million (up 12% from FY 2023), while its net loss widened by 100% from FY 2023. The increase in loss is primarily due to the company’s big investments in tapping the AI boom.

NextDC shares are up almost 31% YTD and almost 190% over the past five years. The stock has a positive rating and price target from many analysts, representing an upside of up to 25% from the current share price.

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3. WiseTech Global Ltd (WTC): Average annualized return of 55%

WiseTech Global (ASX:WTC) develops and offers software solutions for the logistics execution industry. The company’s renowned flagship product suite, CargoWise, offers advanced solutions for international freight forwarders, thereby allowing them to automate and optimize their logistics operations.

WiseTech posted strong financial numbers for the fiscal year 2024, achieving a 50% EBITDA margin run rate in the fourth quarter. Total revenue for the company increased by 28% and EBITDA was up 28%. Moreover, the company introduced three new products, as well as declared a dividend of $0.092 per share, up by 10% from the previous.

For FY25, the company expects revenue between $1.3 billion and $1.35 billion and EBITDA between $660 million and $700 million. The company’s shares are up more than 70% YTD and over 280% in the past five years. Analysts are also positive on the company. 

WiseTech reasserted its strategy of growing through product innovation and efficient systems rather than increasing the price of its services, and this is good news for investors who are looking to stay with the company for a long time.

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4. Megaport Ltd (MP1): Average annualized return of 14%

Megaport (ASX:MP1) is a ‘network-as-a-service’ company that offers cloud connectivity services, allowing clients to connect their IT infrastructure to leading networks. The tech company offers over 365 services and has more than 120 unique data centre operators.

Megaport recently reported strong full-year 2024 results, with revenue up 28% from FY 2023. More importantly, the company posted a net income of AU$9.61 million, compared to a loss of AU$9.77 million in FY 2023.

Megaport noted that increased revenue helped the company turn a profit. The company expects a 13% revenue increase annually for the next three years, compared to a 14% estimated growth for Australia’s IT industry.

Though the stock is down almost 20% YTD, its fundamentals look decent. Moreover, the company’s long-term outlook also looks positive, with sustained growth in AI and data center demand. Another positive for Megaport is that it reinvests the majority of its profits to grow its business, as it doesn’t pay any regular dividends.

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5. REA Group Limited (REA): Average annualized return of 24%

REA Group (ASX: REA) operates an online property advertising business in Australia and abroad, including India, the United States, Malaysia, Singapore, Thailand, Vietnam and more. The company primarily connects property seekers with real estate offerings, thereby having revenue streams across multiple regions

Shares of the company have gained almost 8% in the last month, following its decision to end its $8.29 billion takeover pursuit for Rightmove, a British real estate portal. Several analysts expect the move to relieve REA shareholders, who were concerned that the company could end up paying much more for the acquisition.

Now with acquisition off the table, the REA Group is expected to announce a special dividend in fiscal year 2025. REA Group, which is 62% owned by Murdoch’s News Corp, generates most of its revenue from its operations in Australia and India.

Moreover, though the company has witnessed a drop in net income this past fiscal year, it is optimistic about its strategic R&D investments to boost its digital real estate services and sustain its innovative and competitive edge.

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6. Seek Limited (SEK): Average annualized return of 13%

Seek Ltd (ASX:SEK) operates an online employment marketplace in several countries, including Australia, South East Asia, New Zealand, the United Kingdom, Europe, and more.

In August, Seek Ltd. reported its full year 2024 results with revenue down 12% from FY 2023. The company also reported a net loss of AU$59.9 million, down 130% from AU$202.7 profit in FY 2023.

Seek Ltd, however, expects to grow its revenue by 7% annually during the next 3 years, above the industry average growth forecast. Additionally, the company is expected to be profitable again within the next three years, with earnings estimated to grow by about 41% annually.

Seek Ltd. is betting heavily on its commitment to innovation to help it return to profits. The company is spending heavily on R&D, hoping to reverse recent downturns and fuel future profitability.

Though the company’s shares are down over 6% YTD, they have gained momentum lately and are up almost 10% in the last month. It seems to suggest that investors are also satisfied with the company’s ongoing efforts to boost its revenues and return to profits.

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7. Brainchip (BRN): Average annualized return of 2%

BrainChip (ASX:BRN) specializes in developing advanced artificial intelligence and machine learning hardware. The company has developed akida, a digital neuromorphic chip with a spiking neural network. Since this chip is AI-based, it doesn’t rely on cloud or any other network.

Additionally, a few months back, the tech company, in a white paper talked about its newly developed technology called TENNs-PLEIADES. Unlike akida, TENNs-PLEIADES is well suited for low-latency applications such as self-driving cars.

A couple of months back, the company reported its first half 2024 results, with loss narrowing 33% from 1H 2023. High cash burn, however, still remains an issue with the company. Last year, the management noted that the high cash burn was largely due to the payment of 2023 bonuses to employees, renewal of corporate insurance policies and increase in marketing & sales services.

Despite such issues and low average annualized return, BrainChip shares are up more than 70% YTD and over 90% in the last month. Investors seem to have faith in the company’s technology and products to drive future growth.

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8. Appen (APX): Average annualized return of 16%

Appen (ASX:APX) is an AI lifecycle company that offers data sourcing, data annotation, and model evaluation solutions. In simple words, the company makes available a platform for the AI data development process.

Last month, the company reported its first half 2024 results with revenue down 19% from 2023. Appen, however, was able to narrow its loss by 59% for the same period. Looking ahead, the company expects to grow its revenue by 2% for the next three years, which is well below the growth forecast for the IT industry in Australia.

Appen’s stock has gained about 250% YTD, but has lost almost 90% in the past five years. The gain in Appen’s stock this year has come despite Google ending all contractual ties with Appen, the company that has helped train the search giant’s chatbot Bard.

Gain in Appen’s stock suggests investors are showing confidence on the company, and believe its technology has the capability to push the growth ahead. Additionally, the company recently announced the launch of new platform capabilities to support enterprises customizing large language models (LLMs).

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9. Life360 (360): Average annualized return of 29%

Life360 (ASX:360) operates an online platform that helps users locate people, pets, and things. Life360 has witnessed remarkable growth lately, on the back of its strategic enhancements and partnerships.

Moreover, the company’s innovative product line, such as the new Tile Bluetooth, is its another positive as it not only expands its product range but also integrates seamlessly with Life360’s app to boost user safety and connectivity.

Additionally, the company is also working to raise its advertising revenues and data sales with its strategic partnerships. Such moves reflect Life360’s willingness to adapt to the latest tech trends with the ultimate objective of pushing up its earnings.

Life360, a couple of months back, reported its second quarter 2024 results with revenue up 20% from 2Q 2023, but net loss widened by 148%. The company, however, expects to grow its revenue by 15% during the next 3 years.

Despite broadening losses, the company’s stock is up over 150% YTD, suggesting investors have faith in company’s tech to push its growth ahead.

 What further instills confidence in Life360 stock is the fact that it is now part of the Russell 2000® and the Russell 3000® Indexes, which are widely used by investment managers and institutional investors as benchmarks for active investment strategies.

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Year-to-date performance of the best Australian tech stocks

Ticker	Company	Performance (YTD)	Invest now
XRO	Xero	31%	Buy with eToro
NXT	NextDC	31%	Buy with eToro
WTC	WiseTech Global	70%	Buy with eToro
MP1	Megaport	20%	Buy with eToro
REA	REA Group	18%	Buy with eToro
SEK	Seek Limited	-6%	Buy with eToro
BRN	BrainChip	70%	Buy with eToro
APX	Appen	250%	Buy with eToro
360	Life360	150%	Buy with eToro

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What are Australian tech stocks?

Australian tech stocks include companies that design, develop, and sell technology products and services. The ASX tech stocks can be categorized into several categories, such as software solutions providers, cloud-based services providers, and data centers.

Another category of tech stocks is those that are related to the communications sector. Additionally, a new tech category that has emerged lately is related to companies dealing in cybersecurity, artificial intelligence (AI), and machine learning.

Such diversity in ASX tech stocks gives investors plenty of investment options to select from, ranging from established companies to innovative emerging players.

Why invest in ASX-listed tech stocks?

Australia, with its broad array of tech companies, allows investors to diversify and strengthen their investment portfolio. Moreover, Australia, with its pro-tech environment and strategic emphasis on information technology and innovation, makes tech stocks an attractive investment.

ASX tech stocks not only give investors an opportunity to make significant profit but also contribute immensely to Australia’s global tech competitiveness.

It all seems to suggest that investors are well positioned to benefit from the sector’s growth potential, which in turn depends on the expansion of companies driving innovation. The same is evident from almost 30% increase in BetaShares S&P/ASX Australian Technology ETF this year.

What are the biggest tech companies in Australia?

Following are some of the biggest tech companies in Australia:

Name	Market Cap	Revenue
Xero	AU$22.5 Billion	AU$1.71 Billion
NextDC	AU$11.12 Billion	AU$404.34 Million
WiseTech Global	AU$43.42 Billion	AU$1.04 Billion
Megaport	AU$1.2 Billion	AU$195.27 Million
REA Group	AU$29.59 Billion	AU$1.68 Billion
Seek Limited	AU$8.72 Billion	AU$1.08 Billion
BrainChip	AU$480.80 Million	AU$223.09K
Appen	AU$555.64 Million	AU$247.12 Million
Life360	AU4.90 Billion	AU$328.68 Million

Pros and cons of investing in Australian tech stocks

Australian tech stocks are a good investment avenue, but they are not without risks. Thus, investors need to understand the pros and cons of investing in Australian Tech stocks.

Some of the pros of buying Australian tech stocks

• Portfolio diversification: Investing in tech stocks is a great way to diversify one’s portfolio. Though tech stocks are known to be volatile, they do allow investors to benefit from the advancements in technology.
• Tech hub: Australia is an advanced economy and thus, has a vast pool of knowledge and expertise. Such resources have helped the country to nurture leading tech companies. It also ensures that Australia will continue to be a tech hub for the foreseeable future.
• Strong performance: The Australian tech sector has witnessed a strong bull run over the past five years, gaining about 90%. On the other hand, the ASX 200 has recorded a gain of about 25% during the same period.

Some of the cons of buying Australian tech stocks

• Volatile: Tech stocks, in general, are considered to be high-risk, high-reward investments. Technology is constantly changing, suggesting tech stocks operate at the cutting edge of their fields. Thus, there is always the chance that a product or service will become outdated.
• Heavy investments: Tech companies, especially those that offer both hardware and software services, invest heavily in new products and services. The company could face serious financial issues if the investment (final product) fails to meet the customer’s expectations.
• Cybersecurity threats: Though such threats are common to all companies, they are more rampant in the tech sector. Cybersecurity threats pose additional risks to tech companies, especially to those involved in data management and internet services.
• Global competition: Competition from global companies can significantly impact the market share and share price of ASX-listed tech companies.

Methodology: How we chose the best Australian tech stocks?

We have only considered established tech companies for our list of the best Australian tech stocks. Additionally, we also considered several factors that impact the performance of tech stocks to come up with the best Australian tech stocks.

Some of the factors that we considered are:

• Stock performance: We considered tech stocks with strong performance over the past few years. Additionally, we also considered the current and expected future performance of the stocks we considered.
• Competitive advantage: It was one of the most important factors that we looked into. Tech stocks with some kind of competitive advantage or edge over others scored high in our list of best ASX tech stocks.
• Fundamentals: Companies with solid fundamentals are more likely to perform well in the future. Thus, we focused on tech stocks that have performed well financially in recent years and have a sound balance sheet.
• Analysts’ estimates: We took into account analysts’ ratings, price targets and commentary on the tech stocks we considered. Stocks with positive analyst ratings and comments scored high on our best ASX tech stocks list.
• Leadership: A company with stable and efficient leadership scored high on our list of best Australian tech stocks. Additionally, we also focused on the individual qualifications of the senior leadership.

Australian tech stocks FAQs