Blackpeak are pleased to present our latest Technology sector update report, with market data through to 30 June 2026 (see link below).
The technology sector is currently in transition — a sharp and indiscriminate sell-off in ANZ listed tech in 2026 coupled with a US market which is increasingly split along AI and semiconductor lines. Whilst M&A activity has been subdued there are clear signs of life with several deals announced in the second half of the FY26. Encouragingly, we see the makings of a turning point, with valuations improving and the IPO window reopening. Key themes include:
- ANZ listed tech has sold off heavily over the last 12 months, well behind a broadly flat ASX 200, with the decline indiscriminate rather than confined to small caps — though the last three months show early signs of improvement
- US performance has diverged, driven by semiconductor and AI exposure, with the market rewarding more defensible business models — infrastructure and cloud, and customers in highly regulated, compliance-driven industries
- M&A activity remains subdued amid macro and geopolitical uncertainty
- AI is reshaping the ecosystem and is now central to how investors assess business model durability and competitive positioning
- AI is also reshaping company P&Ls, with costs rising ahead of revenue as firms invest in compute and talent, and investors watching closely for the first signs of genuine monetisation
- Global IPO markets are reopening, led by SpaceX (the largest IPO on record) with OpenAI and Anthropic to come. In Australia, there is a building IPO pipeline on the back of Koala’s recent debut and prospective listings including Firmus, Sharon AI, Monvia and Innovaero signalling renewed issuance appetite