** Australian technology stocks .AXIJ rise 1.1%, tracking Wall Street peers' overnight rally

** Sub-index set for best day since January 8; but set for more than 1% weekly decline

** Tech-heavy Nasdaq gained 0.25% after world's main producer of advanced AI chips, TSMC 2330.TW, predicted robust annual growth, flagged more U.S. manufacturing capacity was in the works .N

** NEXTDC NXT.AX rises 2.6%; Wisetech Global WTC.AX firms 0.7%; Xero XRO.AX up 0.5%

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))