Top 5 ASX tech shares to watch in 2025

What are tech shares?

Tech shares represent the stocks of companies publicly listed within the expansive technology sector. While defining this category can be challenging, it encompasses a diverse array of industries, including semiconductor manufacturers, smartphone makers, software companies and more.

What’s more, many industries rely on tech to make their businesses function – think of pharmaceuticals running clinical trials or warehouses picking and packing. 

So, the broad spectrum of tech shares makes it tricky to choose which ones might perform well. But with that in mind, we’ve selected five ASX-listed tech stocks to watch right now in 2025. We’ll give you more information on how we picked these later in this article.

About Australian tech shares

While the Australian equities market is known for being dominated by finance and resource shares, it's also home to some outstanding tech companies that are global leaders when it comes to breakthrough innovations.

Australia is an advanced economy, home to some of the world's most highly ranked tertiary institutions and research groups. This deep pool of knowledge and expertise has enabled our country to nurture leading tech companies that punch well above their weight in global terms.

In addition to Australia’s outstanding tertiary education system, our tech sector also benefits from the country's excellent legal and financial systems, which help create certainty and trust for share traders.

Advantages of trading tech shares

There are a couple reasons why trading tech shares might be a good move for your portfolio:

• Innovation exposure: tech stocks are often on the cutting-edge of the latest technology, like AI, giving traders access to innovation in their portfolios
• Rapid expansion: due to the fast-paced nature of technological advancements, tech shares often exhibit substantial growth, potentially enhancing your initial investment, provided you select the right ones

Risks of trading tech shares

Just as there are pros to trading tech shares, so exist potential downsides, too:

• Volatility: as with many other share categories, tech shares see a great deal of volatility due to a number of factors, such as supply chain disruptions, particularly when it comes to accessing tech to function – low supply of resources for hardware, for example, can hurt tech businesses
• Not always beginner-suitable: because tech changes so quickly, its volatility can be hard for beginner share traders and CFD traders to navigate

Top 5 ASX tech shares to watch

We chose these five shares based on several compelling reasons, including:

Diversification: they run the gamut of technology companies, from communications to bookkeeping

• Recent performance: their share prices have risen significantly over the past three months, some by as much as 32%
• Rule of 40: some of the companies on this list, like Xero, exceed the rule of 40 percentage, indicating healthy growth and profits
• Global operations: a few of our stock picks operate globally, opening up a broader market for share traders to gain exposure to

Overview of the ASX tech shares in this article 

The shares in our list can all be traded via CFDs with us, as well as via share trading the individual stocks with an IG share trading account.

1. Codan Limited (ASX: CDA)
 

Industry: security and communications

Market cap: A$3.76 billion¹

Current focus: communications for the military and public safety customers

Codan designs and manufactures high-frequency (HF) radios, land mobile radios (LMR), command-and-control software, secure communications infrastructure, tactical mesh networks and metal detectors used in the defence, mining and emergency response sectors.

With the rise of AI, digital security is a greater priority than ever, which is why Codan is making share traders take notice. Its share price has soared 32.01% over the past three months, telling us it’s a stock worth watching.

A great deal of the company’s growth is due to the comms side of the business, particularly for the military and public safety clients, through its subsidiaries Domo Tactical Communications and Zetron.

Highlights:

• The share price has leapt from A$15.56 on 28 April 2025 to A$20.54 on 29 July 2025
• Its latest quarterly report shows a group revenue of A$305.6 million²
• It delivered a net profit of A$46.1 million after tax in the same quarter³

2. Xero Limited (ASX: XRO)
 

Industry: financial services

Market cap: A$29.57 billion⁴

Current focus: helping small businesses with their bookkeeping 

Software developer Xero Limited provides cloud-based accounting tools to small business owners and bookkeepers. A key selling point of its products is the automation of the many accounting and bookkeeping tasks that small businesses must perform regularly.

Xero has integrated with more than 1,000 third-party apps to improve the functionality of its software, and it claims a client base of 4.4 million customers worldwide.

It exceeds the rule of 40 with 44.3%.⁵ This is a measure to determine how successful software as a service (SaaS) companies are. It’s calculated by adding the revenue growth rate percentage to its profit margin percentage. If the amount equals or exceeds 40%, the company is considered to balance growth with profitability well. 

Highlights:

• The latest quarterly report indicates an operating revenue of NZ$2.103 million, a 23% growth year over year (YoY)⁶
• FY25 has thus far seen a revenue of NZ$2.10 billion, according to the earnings report⁷
• Rule of 40 score has grown from 30% in FY22 to 44% in FY25⁸

3. Infomedia Limited (ASX: IFM)
 

Industry: computer software (in the automotive industry)

Market cap: A$480.59 million⁹

Current focus: periodical publishing

Infomedia develops and supplies electronic part catalogues for the automotive industry, as well as service quoting software and ecommerce solutions. It serves 250,000 industry users globally and operates in 186 countries.¹⁰ 

Its SaaS, data as a service (DaaS) and AI solutions help to streamline business processes for dealerships, automakers and original equipment manufacturers (OEMs). 

In 2025, the company acquired a 50% stake in Munich-based company Intellegam – an AI start-up.

Infomedia recently announced a share buyback programme, pointing to the business believing its stock might be undervalued. It also paid a dividend of A$0.022 on 10 March 2025,¹¹ signalling confidence in the company’s future. 

Highlights:

• Its latest half-year presentation indicates an underlying cash EBIDTA of A$17 million – an increase of 7% for the same period in FY24¹²
• Total revenue was A$71 million for H125¹³
• Net profit after tax was A$8.3 million¹⁴

4. SiteMinder Limited (ASX: SDR)
 

Industry: computer software (in the hospitality industry)

Market cap: A$1.39 billion¹⁵

Current focus: software and programming services focused on guest acquisition for accommodation providers globally

SiteMinder operates a digital platform that enables accommodation providers to manage their online presence and bookings. It offers a channel manager, which helps hotels distribute their inventory across multiple online travel agencies, such as Booking.com and Agoda – all from a single platform.

The company serves 47,000 accommodation providers worldwide across 150 countries. Its main target markets are independent hotels, hotel groups and similar providers.

SiteMinder continues to invest in its Smart Platform technology, which aims to help hotels generate more revenue through better data analytics and AI-powered tools. 

Its share price was A$3.94 on 28 April 2025, increasing to A$5.08 on 29 July 2025.

Highlights:

• The share price has increased by 28.93% over the past three months
• Total H125 revenue was A$104.5 million¹⁶
• Underlying EBITDA was A$5.3 million, as shared in the latest half-year earnings report¹⁷

5. Gratifii Limited (ASX: GTI)
 

Industry: loyalty and rewards programmes

Market cap: A$37.60 million¹⁸

Current focus: migrating over to a new platform – ‘Gratifii Connect’

Gratifii is an Australian-based tech company that specialises in loyalty and rewards programmes for businesses, which they implement for their own customers and employees. 

It's known for its Mosaic program, a SaaS service that enables businesses to create and manage custom loyalty programmes. 

It operates across Australia, New Zealand and Southeast Asia in the retail, hospitality, energy, tourism, financial services, automotive, and health and wellness sectors – among many others.

Its key services include: 

• Employee engagement programmes
• Promotional campaigns
• Marketing services
• Corporate gifting

The company’s share price has increased by 25% over the past three months, as of 29 July 2025. 

Highlights:

• The company is undergoing an exciting platform transformation from its old Neat Ideas platform to the newer Gratifii Connect, indicating company growth
• It completed an institutional placement (a capital-raising endeavour), raising A$1.7 million prior to fees

How to trade ASX tech shares with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX tech shares on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX tech shares available for direct ownership
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about tech shares 

Footnotes
 

1. TradingView, July 2025
2. Codan earnings report, February 2025
3. Codan earnings report, February 2025
4. TradingView, July 2025
5. Xero earnings report, May 2025
6. Xero earnings report, May 2025
7. Xero earnings report, May 2025
8. Xero earnings report, May 2025
9. TradingView, July 2025
10. Infomedia Limited, July 2025
11. TradingView, July 2025
12. Infomedia Limited half-year results, February 2025
13. Infomedia Limited half-year results, February 2025
14. Infomedia Limited half-year results, February 2025
15. TradingView, July 2025
16. SiteMinder Limited investors report, February 2025
17. SiteMinder Limited investors report, February 2025
18. TradingView, July 2025