September Tech Winners: ASX tech sector up 7.42pc, still top YTD

The ASX 200 information technology sector rose 7.42% in September to remain the bourse's top performer this year, with  software, not hardware, leading the charge. 

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• The S&P/ASX 200 Information Technology sector rose 7.42% in September and leads ASX sectors YTD,  up 48.53%

• Global X said there was a clear shift to lagging software sub-sector as investors look beyond outperforming hardware names 

• Envirosuite tops winners board in September up 84% after Hitachi Construction Machinery invests $10m to be largest shareholder

The S&P/ASX 200 Information Technology sector rose 7.42% in September in what was a strong month for global markets and is up 48.53% YTD to remain the top-performing sector of 2024.

The US Nasdaq Composite index – the bellwether for the global tech sector – was the best performer of the major US indices in September but trailed the Aussie sector to rise 2.7%.

The Nasdaq had a rough start to September in what is historically the weakest month for the stock market, however, rebounded when the US Federal Reserve cut interest rates by 50bps.

Global X investment strategist Billy Leung told Stockhead software carried the weight in September up 3%, while hardware remained flat.

"This follows a similar pattern from August, particularly after August 5 volatility event, which reset the market’s expectations," he said.

Leung said the market continues to maintain a positive sentiment towards innovation but there was clear shift as the trade broadens into lagging sub-sectors like software, which had shown resilience in the face of ongoing tech momentum.

"This rotation reflects a renewed interest in areas that had previously underperformed, as investors look for opportunities beyond the outperforming hardware names," he said.

Top ASX tech winners in September

Code	Name	Price	% Change	Market Cap
EVS	Envirosuite Ltd	0.079	84%	$108,434,687
RKT	Rocketdna Ltd	0.015	67%	$9,185,608
YOJ	Yojee Limited	0.083	66%	$22,006,811
NOV	Novatti Group Ltd	0.078	56%	$29,527,287
FCT	Firstwave Cloud Tech	0.028	47%	$47,880,542
FBR	FBR Ltd	0.05	47%	$241,219,867
NXL	Nuix Limited	6.56	42%	$2,086,157,080
EIQ	Echoiq Ltd	0.225	41%	$126,532,024
ASV	Asset Vision Co	0.028	40%	$21,354,485
BRN	Brainchip Ltd	0.235	38%	$382,681,255
AJX	Alexium Int Group	0.011	38%	$17,312,666
8CO	8Common Limited	0.041	37%	$9,187,891
SEN	Senetas Corporation	0.023	35%	$40,853,367
JCS	Jcurve Solutions	0.031	35%	$9,910,303
PHX	Pharmx Technologies	0.047	34%	$28,129,819
BTH	Bigtincan Hldgs Ltd	0.16	33%	$131,468,149
CT1	Constellation Tech	0.002	33%	$2,949,467
SIS	Simble Solutions	0.004	33%	$2,260,352
SNS	Sensen Networks Ltd	0.051	31%	$41,237,949
BEO	Beonic Ltd	0.03	30%	$18,906,910
ELS	Elsight Ltd	0.425	29%	$66,592,605
ACE	Acusensus Limited	0.83	28%	$101,871,708
RUL	Rpm Global Hldgs Ltd	3	26%	$677,586,929
SPX	Spenda Limited	0.01	25%	$50,639,555
ASB	Austal Limited	2.91	25%	$1,025,844,328

Envirosuite (ASX:EVS) topped the tech winners board in September, up 84% with the company announcing Hitachi Construction Machinery was investing $10m, buying about 12% of its shares and becoming its largest shareholder.

EVS said Hitachi – a major construction machinery firm – would use its global presence and industry knowledge to boost the company's market opportunities.

RocketDNA (ASX:RKT) rose 67% in September with the company announcing it had signed two significant contracts for its xBot surveillance model (PatrolBot) with SSG Security Solutions.

The contracts involve the deployment of PatrolBot units across several mining sites for the monitoring and reporting of defined areas using drone or unmanned technology for the purpose of security overwatch and intelligence gathering.

Fintech Novatti (ASX:NOV) was up 56% in September and got hit with a please explain from the ASX. NOV responded it was unaware of any specific reason for the recent trading in its securities other than "continued successful execution of the company's strategy to simplify its business and lift financial performance, demonstrated through recent announcements to ASX.

The company said this included release on August 30 of the unaudited FY24 results, which highlighted significant year-on-year improvements, including a 10% increase to revenue, a 19% decrease in operating expenses and a 16% improvement in underlying EBITDA.

Leung said Nuix (ASX:NXL) had its investor day on September 3, where it outlined its growth strategy, including the goal to increase annual contract value by 15%.

"Additionally, the company saw growing demand for their Nuix Neo platform, which addresses unstructured data challenges," he said.

"These developments drove investor confidence, along with an initiation report by Jefferies with a buy rating with a target price of $6.10 and ongoing positive broker sentiment with upwards earnings revision."

BrainChip Holdings (ASX:BRN) rose 38% in September after announcing a strategic partnership with a leading automotive manufacturer to integrate its Akida neuromorphic processor into advanced driver-assistance systems.

Leung said it highlights BRN’s expansion into the auto sector and growing demand for energy-efficient AI solutions in edge computing.

Austal (ASX:ASB) rose 25% received a significant submarine contract worth US$450m on September 16 to expand its submarine module production capacity, which strengthens its position in the US defence sector.

Biggest ASX tech losers in September

Code	Name	Price	% Change	Market Cap
1TT	Thrive Tribe Tech	0.001	-50%	$611,622
VR1	Vection Technologies	0.008	-38%	$10,612,712
IXU	Ixup Limited	0.015	-35%	$23,216,289
FGL	Frugl Group Limited	0.015	-35%	$1,573,629
3DP	Pointerra Limited	0.049	-27%	$39,448,763
LNU	Linius Tech Limited	0.0015	-25%	$11,730,481
PIL	Peppermint Inv Ltd	0.006	-25%	$14,849,508
NVU	Nanoveu Limited	0.018	-25%	$10,603,376
TZL	TZ Limited	0.019	-24%	$4,361,913
W2V	Way2Vatltd	0.01	-23%	$8,122,541
DUG	DUG Tech	2.53	-21%	$289,402,296
ZMM	Zimi Ltd	0.009	-21%	$1,139,982
XPN	Xpon Technologies	0.008	-20%	$2,899,532
SMP	Smartpay Holdings	0.935	-19%	$227,426,856
XF1	Xref Limited	0.15	-19%	$28,362,490
MP1	Megaport Limited	7.32	-19%	$1,200,839,093
LIS	Lisenergylimited	0.115	-18%	$73,623,026
BCC	Beam Communications	0.14	-18%	$12,099,069
IS3	I Synergy Group Ltd	0.005	-17%	$1,781,089
SMN	Structural Monitor	0.58	-17%	$79,668,250
EML	EML Payments Ltd	0.65	-16%	$247,030,375
OPL	Opyl Limited	0.017	-15%	$2,902,149
HTG	Harvest Tech Grp Ltd	0.018	-14%	$13,884,625
ID8	Identitii Limited	0.012	-14%	$7,156,683
FLX	Felix Group	0.16	-14%	$32,719,954

Originally published as September Tech Winners: ASX tech sector up 7.42pc, still top YTD