By Aaron Teboneras
Publication Date: 2026-02-16 04:56:00
Image source: Getty Images
The NextDC Ltd (ASX: NXT) The share price is trading 1.93% lower at $13.75 today.
But despite a slight decline on Monday, NextDC shares are up nearly 10% in the last month. This compares to a decline of around 18% S&P/ASX All Technology Index (ASX: XTX) over the same period.
Why is that? S&P/ASX 200 Index (ASX:XJO) stock holding up?
Let’s take a closer look.
Why are tech stocks under pressure?
The recent sell-off was driven by a realignment of expectations around artificial intelligence (AI).
Last year, many tech stocks rallied strongly on AI optimism. Valuations rose as investors priced in rapid revenue growth and long-term margin expansion.
In recent weeks this enthusiasm has waned. Markets are reassessing how quickly AI spending will translate into revenue, particularly for software and platform companies that are still investing heavily.
As a result, higher-growth companies experienced a sharp decline in valuations.
