The first wave of the AI boom sent semiconductor stocks soaring, while software companies were smashed on fears AI could disrupt their business models.
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However, according to Wealth Within analysts Filip Tortevski and Pedro Banales, that story may now be starting to flip, with several beaten-down ASX software stocks using AI as a potential growth driver.
Xero (ASX: XRO) is one company on their radar. Its AI assistant, Jax, is automating everyday accounting tasks, potentially making the platform more valuable to customers. Tortevski highlighted renewed buying around the $65 support area, with a break above $89–$90 an important technical hurdle.
Wise Tech Global (ASX: WTC) could be even more interesting. The company is expanding its AI capabilities, including acquiring FRDM.ai, while its FY26 result on 26 August could provide an important test of whether those investments are translating into stronger productivity, margins and earnings.
Meanwhile, Technology One (ASX: TNE) may already be demonstrating the opportunity. The company upgraded FY26 profit-growth guidance to 18–20%, while annual recurring revenue reached a record $598 million, with management pointing to strong AI adoption.
For Wealth Within’s Filip Tortevski and Pedro Banales, the opportunity is becoming clearer: the AI story for software is shifting from disruption to which companies can use it to become stronger.
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