Is ASX AI Sector Getting Influenced by Rate Cut Expectations?

Rate cuts can have a significant impact on technology and AI sector because they reduce borrowing costs at a time when many companies are investing heavily in capital-intensive infrastructure, cloud capacity, semiconductor partnerships along with research and development. Cheaper funding allows businesses to accelerate product pipelines, move into new markets and support longer innovation cycles without facing pressure from debt servicing. Investor sentiment will also improve and attract capital into growth companies especially where there is a strong competitive advantage.

Nuix Limited (ASX: NXL)

on 3 December 2025 announced that it has signed an agreement to acquire Linkurious which is a Paris-based AI graph-analysis company with Annualised Contract Value (ACV) of around $12 million and the acquisition values the business at up to $35.4 million with earn-outs linked to ACV expansion and cross-selling over 24 months.

Nuix in FY25 had Annualised Contract Value of about $228.4 million which is a 8% growth from last year supported by stronger subscription licensing and better adoption of the Nuix Neo platform.

Cash EBITDA increased by 24.5% to $37.2 million in FY25 which reflects improving operational efficiency and better cost discipline even as revenue stayed flat.

The balance sheet is strong with $40 million in cash and a $30 million undrawn facility which gives flexibility for further investments and acquisitions.

NEXTDC Limited (ASX: NXT)

on 1 December 2025 announced that strong customer contract wins boosted contracted utilisation to 316MW and expanded the forward order book to 205MW which resulted in FY26 capex guidance being lifted to $2.2–2.4 billion.

The company had a great FY25 as demand for AI, cloud and hyperscale workloads kept rising and net revenue grew by 14% to $350.2 million.

The Underlying EBITDA grew 6% to $216.7 million as the company kept scaling their facilities.

The balance sheet is very strong with total assets of $5.7 billion and gearing of only 18% which gives them the ability to fund their expansion. 

Weebit Nano Limited (ASX: WBT)

delivered its strongest quarter so far with customer receipts reaching $7.3 million in Q1 FY26 which reflects growing commercial adoption.

The company completed the tape-out of its first test module embedded with Weebit ReRAM at onsemi’s 300mm production fab.
Weebit achieved its 2025 target of three product design agreements with US technology firms that plan to use ReRAM in next-generation smart battery management and security devices while ending the quarter with $91.6 million in cash.

The company is expecting additional licensing agreements driven by broader ReRAM adoption in embedded AI and edge computing markets where scalability, low power use and cost efficiency are very important.

BrainChip Holdings Limited (ASX: BRN)

is working on neuromorphic AI technology and during the first half of 2025, the company focused on real-world deployment of its Akida processor platform across edge-AI use cases.

Revenue increased sharply to about US$1.02 million which represents an approximately 859% jump from last year.

The company aims to accelerate adoption by targeting industries where battery-powered devices need fast, efficient and local AI inference such as automotive sensors, drones, medical wearables and smart infrastructure.

Cash at the end of June 2025 was US$13.45 million and if commercial adoption improves in FY26 and beyond, BrainChip could become a key player in the broader semiconductor and AI ecosystem.

(Source: Company Reports)