The artificial intelligence-fuelled bonanza that has pushed the Nasdaq significantly higher in 12 months has well and truly spread to Australia, with local tech stocks ending the financial year up 27 per cent.

Jules Cooper, a technology analyst at Shaw and Partners, says it has been a tale of two halves – in the first six months of the financial year, investors were focused on rising interest rates which drove an exodus from the sector. Now with the peak of the rate cycle in sight, enthusiasm has returned.