Wealth Within Identifies Three ASX Software Stocks Benefiting From the Next AI Wave
Key Takeaways
- •Semiconductor stocks surged in the first phase of the AI boom, while software shares were sold off on disruption fears.
- •Wealth Within analysts said the AI narrative for ASX software stocks is starting to shift from threat to growth opportunity.
- •Xero’s Jax assistant is automating routine accounting work, and buying interest has returned around the $65 level.
- •WiseTech Global is expanding its AI efforts, including through the acquisition of FRDM.ai, ahead of its FY26 result on 26 August.
- •Technology One raised its FY26 profit-growth guidance to 18% to 20% after annual recurring revenue reached a record $598 million.
The first wave of the artificial intelligence boom sent semiconductor stocks sharply higher, while software companies were sold off amid concerns that AI could disrupt their business models.
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According to Wealth Within analysts Filip Tortevski and Pedro Banales, that dynamic may now be starting to reverse, with several beaten-down ASX software stocks using AI as a potential growth driver. For investors watching the sector, the focus is less on broad AI enthusiasm and more on whether companies can show practical use cases that support customer retention, efficiency and earnings.
Xero (ASX: XRO) is one company on their radar. Its AI assistant, Jax, is automating routine accounting tasks and could make the platform more valuable to customers. Tortevski said buying has re-emerged around the $65 support area, while a move above $89 to $90 remains an important technical hurdle.
WiseTech Global (ASX: WTC) could be even more interesting. The company is expanding its AI capabilities, including through the acquisition of FRDM.ai, while its FY26 result on 26 August is expected to provide a key test of whether those investments are translating into improved productivity, margins and earnings.
Technology One (ASX: TNE) may already be showing the benefits. The company upgraded its FY26 profit-growth guidance to 18% to 20%, while annual recurring revenue hit a record $598 million, with management pointing to strong AI adoption.
For Wealth Within’s Filip Tortevski and Pedro Banales, the opportunity is becoming clearer: the AI story for software is shifting from disruption to identifying which companies can use the technology to become stronger.
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