MoneyTalks is Stockhead’s regular drill down into what stocks investors are looking at right now. We’ll tap our extensive list of experts to hear what’s hot, their top picks, and what they’re looking out for.

Today we hear from Wealth Within chief analyst Dale Gillham.

Strong and sustained interest in use of artificial intelligence (AI) continues to buoy the tech sector on a global scale. In February the S&P/ASX 200 Info Tech (ASX:XIJ) index rose 19.48% in February to far outpace the benchmark S&P/ASX 200 which rose just 0.79%.

The bellwether for the global tech sector the NASDAQ Composite index rallied by more than 44% in 2023 and continues to climb in 2024, up more than 10% YTD.

And then let’s not forget about Nvidia, which is at the centre of the AI boom. NASDAQ-listed Nvidia’s graphics processing units (GPUs) are widely used in AI and machine learning applications due to their parallel processing capabilities, making them well-suited for tasks such as deep learning and neural network training.

The tech giant reported a revenue of $US22.1 billion for Q4 FY24 up 265% increase compared to the previous year causing its share price to surge by $US250 billion on February 22, in the largest single-day gain in Wall Street history.

The Nvidia share price rose ~240% in 2023 and is up more than 70% YTD.

“Whether you do or don’t like or use artificial intelligence (AI) technology, we can all agree that it’s here to stay,” Gillham says.

“From an investment viewpoint, if this sector can perform in Australia even remotely close to its American neighbour, then we might well be staring at a future goldmine for early investors.”

Gillham says despite the Australian market being heavily weighted towards the financials and materials sectors, he believes the AI industry is on the cusp of remarkable growth.

“This is being driven by the recent improvements in generative AI and a greater willingness to use AI in different industries,” he says.

“According to projections, AI spending in Australia is expected to reach US$6.4 billion by 2026, contributing to an estimated AU$22.7 trillion boost to the global economy by 2030.”

With continued interest in the AI sector, here are three ASX companies which Gillham says have caught his attention.


Appen (ASX:APX)

Gillham says despite recent challenges, APX remains a key player, providing data tools and services to global market players.

APX released its FY23 results in February showing revenue fell to $US273 for the full year ended December 31, while new markets revenue of US$81.5 million was down 7.8% which the company put down to lower contribution from global product dropping 46.5%.

New CEO and managing director Ryan Kolln says 2023 was a transitional year for the AI market and APX.

“The mainstream availability of generative AI created huge interest for our customers but also resulted in many reevaluating their AI investments,” he says.

“We experienced a material revenue reduction as customers navigated the rapidly evolving AI market and responded to the general economic slowdown.”

However, Kolln says FY24 is looking up for APX with the company highly focused on cash positivity and the revenue decline from a large customer that impacted FY23 revenue stabilising in Q4 FY23.

“The company’s new products are focused on generative AI applications, and with the share price trading at an all-time low, I believe the potential upside for investors in this stock is astronomical if Appen can get things right,” Gillham says.

“It’s just too early right now to invest.”



Gillham says NXT is Australia’s leading data centre company. It operates 13 centres across multiple countries and is in partnership with Microsoft.

NXT recently announced its H1 FY24 result with total revenue for the half increased by 31% to $209.1m. Underlying EBITDA was up by 5% to $102m.

The company says it remains well capitalised to take advantage of its strong forward sales pipeline, as well as to continue to build its forward sales and earnings outlook.

“The share price is currently trading at an all-time high, and rightfully so,” he says.

“Therefore, while I believe now is not the ideal time to buy this stock as it has run a little too hard in the short term, I will be watching it like a hawk, waiting for the next opportunity.”


BrainChip Holdings (ASX:BRN)

Gillham says BRN is at the forefront of AI reasoning and analysis and most notably, is known for its Akida Neuromorphic Processor.

Tthe company is forecasting it will be operating in a market worth over US$1 trillion by 2030.

“To add further good news, it has posted one of its best months in recent history, up over 150% for the month of February.

“Unlike NXT, however, which is trading at its all-time high, I believe BRN has plenty more upside potential in the short to medium term; therefore, this is one to watch very closely.”

READ: Brainchip’s potential in Edge AI is undeniable, but can sales catch up with its cash burn?


The APX, NXT & BRN share price today:


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