{"id":78278,"date":"2026-02-06T04:33:22","date_gmt":"2026-02-06T07:33:22","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/889906191"},"modified":"2026-02-06T04:33:22","modified_gmt":"2026-02-06T07:33:22","slug":"why-are-asx-200-tech-shares-diving-13-this-week","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/06\/why-are-asx-200-tech-shares-diving-13-this-week\/","title":{"rendered":"Why are ASX 200 tech shares diving 13% this week?"},"content":{"rendered":"
<\/div>\n

Ugh \u2014 it’s been another shocker for ASX 200 tech shares<\/a> this week. <\/p>\n

The S&P\/ASX 200 Information Technology Index<\/strong> (ASX: XIJ) is currently 13.07% down over the past five days of trading. <\/p>\n

And that’s no anomaly. <\/p>\n

The new year has basically been a bin fire for ASX 200 tech stocks so far.<\/p>\n

Check out this year-to-date (YTD) performance for the 11 ASX 200 market sectors<\/a>. <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
S&P\/ASX 200<\/strong> market sector<\/strong><\/td>\nYTD performance<\/strong><\/td>\n<\/tr>\n
Energy <\/strong>(ASX: XEJ)<\/td>\n7.1%<\/td>\n<\/tr>\n
Materials <\/strong>(ASX: XMJ)<\/td>\n5.2%<\/td>\n<\/tr>\n
Consumer Staples<\/strong> (ASX: XSJ)<\/td>\n2.4%<\/td>\n<\/tr>\n
Healthcare <\/strong>(ASX: XHJ)<\/td>\n0.3%<\/td>\n<\/tr>\n
Financials <\/strong>(ASX: XFJ)<\/td>\n0.1%<\/td>\n<\/tr>\n
Consumer Discretionary<\/strong> (ASX: XDJ)<\/td>\n(1.9%)<\/td>\n<\/tr>\n
Industrials <\/strong>(ASX: XNJ)<\/td>\n(2.6%)<\/td>\n<\/tr>\n
Utilities<\/strong> (ASX: XUJ)<\/td>\n(3.2%)<\/td>\n<\/tr>\n
Communications<\/strong> (ASX: XTJ)<\/td>\n(5.7%)<\/td>\n<\/tr>\n
A-REIT<\/strong> (ASX: XPJ)<\/td>\n(5.8%) <\/td>\n<\/tr>\n
Information Technology <\/strong>(ASX: XIJ)<\/td>\n(20.5%) <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

Oh, the pain for those of us invested in tech stocks! <\/p>\n

Meantime, the benchmark S&P\/ASX 200 Index <\/strong>(ASX: XJO) has increased by 0.2% YTD. <\/p>\n

So, why are ASX 200 tech shares in the trash? <\/p>\n

Let’s review.<\/p>\n

Why are ASX 200 tech shares in the trash?<\/h2>\n

Tech company valuations have been a concern for a while, particularly in the US, following another strong year for the sector in 2025.<\/p>\n

A small group of large US-listed companies, including the Mag Seven<\/a>, has driven extraordinary gains for the US market for a few years.<\/p>\n

Now, investors are worried about the incredible volume of money that these companies are ploughing into artificial intelligence (AI)<\/a>, and whether the pay-off will be worth it. <\/p>\n

In its Global Market Outlook for 2026, State Street Investment says<\/a>: <\/p>\n

\n

\u2026 the US remains the epicenter of the AI trade with Magnificent 7 share price gains fueled by AI spending expectations. <\/p>\n

Capital spending by this cohort is expected to grow to about $520 billion in 2026, or over 30% year-on-year.<\/p>\n<\/blockquote>\n

This week, the Nasdaq Composite Index<\/strong> (NASDAQ: .IXIC) fell to its lowest point since November after Google parent company, Alphabet Inc<\/strong>, said it may spend as much as $US185 billion in capex this year. <\/p>\n

Bank of America forecasts that overall AI capex will quadruple to $1.2 trillion by 2030. <\/p>\n

Investors are also worried that AI itself will end up being a competitor to tech companies, especially software-as-a-service (SaaS) firms, if it can deliver similar services in the future. <\/p>\n

Everything that happens in the US tech sector affects ASX 200 tech shares, as our market tends to follow the US every day. <\/p>\n

In terms of local factors dragging ASX 200 tech shares down, an interest rate<\/a> hike in Australia this week did no favours for the sector. <\/p>\n

Additionally, some of the big players in ASX technology have come under share price pressure due to valuation concerns this year.<\/p>\n

There have also been governance issues with the sector’s largest company, WiseTech Global Ltd<\/strong> (ASX: WTC<\/a>). <\/p>\n

On top of all that, mining shares have become the hottest trade in town, and this has diverted investors’ attention away from tech.<\/p>\n

Impact on ASX 200 tech shares <\/h2>\n

Here is a sample of ASX 200 tech shares and how they are travelling in the YTD. <\/p>\n

The WiseTech share price is $46.76, down 6.3% today and down 32% YTD.<\/p>\n

The Xero Ltd <\/strong>(ASX: XRO<\/a>) share price is $79.65, down 3% on Friday and down 29% YTD. <\/p>\n

TechnologyOne Ltd <\/strong>(ASX: TNE<\/a>) shares are $21.89 apiece, down 4.9% today and down 21% YTD. <\/p>\n

Nextdc Ltd <\/strong>(ASX: NXT<\/a>) shares are $12.43, down 6% today and down 0.9% YTD. <\/p>\n

Megaport Ltd<\/strong> (ASX: MP1<\/a>) shares are $9.97, down 8.8% today and down 19% YTD. <\/p>\n

<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… P/ASX 200 Information Technology<\/span> Index\u00c2\u00a0(ASX: XIJ) is currently … are ASX 200 tech<\/span> shares in the trash? Tech<\/span> company valuations … up being a competitor to tech<\/span> companies, especially software-as- … local factors dragging ASX 200 tech<\/span> shares down, an interest …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-78278","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/78278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=78278"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/78278\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=78278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=78278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=78278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}