The global artificial intelligence trade is roaring back to life, driving stunning returns for chip companies worldwide. The Philadelphia Stock Exchange Semiconductor Index, which tracks the world’s largest chip manufacturers, jumped 4.3 per cent in its best day in seven weeks, and has gained 78 per cent this year, led by memory chipmaker Micron. However, the Australian sharemarket has largely missed this boom due to its low exposure to the technology sector, which makes up just 1 per cent of the ASX 200’s profits. This has prompted investors to increasingly scour the smaller end of the local market for opportunities to participate in the AI wave.
Among the standout performers is DXN Limited, a company that designs, engineers, manufactures, and operates prefabricated modular data centres. These modular solutions are critical for accelerating the rollout of AI factory capacity, driving significant investor interest. Backed by Pure Asset Management, Wilson Asset Management, and Regal Partners, DXN’s stock has rocketed more than 2000 per cent since June 1. Wilson Asset Management portfolio manager Shaun Weick, who originally bought the stock for 8¢, states, “We think DXN has the potential to be a multi-bagger from here and is one of the best micro-cap opportunities on the ASX.”
Other small-cap companies are also gaining traction. ASX-listed data processing and security software firm Fortifai has seen its share price surge 400 per cent in the past 12 months. Dubbo-based Maas Group, a construction outfit, has pivoted its focus to its electrical business, securing significant contracts with data centre developer Firmus. Bell Asset Management’s Tim Johnston highlights Maas Group’s substantial role in the data centre build-out, with its share price jumping nearly 50 per cent. Melbourne-based engineering company Synertec has also garnered attention, recently upgrading its 2027 financial year revenue guidance and seeing its share price rocket 400 per cent year-to-date. SG Hiscock & Company portfolio manager Rory Hunter notes Synertec is still “flying under the radar” with a $70 million market cap.
