One area of the technology sector which is booming in 2020 is cloud computing. This technology really came to prominence this year as people worked from home or streamed endless hours of entertainment via Netflix during lockdowns.
The good news is that this seismic shift is still only getting started and more and more infrastructure is expected to move onto the cloud in the coming years.
I believe this bodes well for the three ASX shares listed below. So much so, they could be top long term options for investors. Here’s why:
Macquarie Telecom Group Ltd (ASX: MAQ)
Macquarie Telecom is a provider of telco and hosting services to corporate and government customers. It is the latter offering that I believe will be the key driver of growth for the company over the 2020s. Its Hosting segment has been growing at a very strong rate and appears well-positioned to continue doing so. Especially after recent capacity expansions were undertaken in order to capture the increasing demand for cloud and cyber security services in Australia.
Megaport Ltd (ASX: MP1)
Another ASX share that looks well-placed to benefit greatly from the cloud computing boom is Megaport. It offers scalable bandwidth for public and private cloud connections, metro ethernet, and data centre backhaul. Its global platform also enables customers to rapidly connect their network to other services across the Megaport Network. They can then be directly controlled by via mobile devices, their computer, or its open API. At the last count, Megaport was connecting more than 1,777 customers in 601 enabled data centres.
NEXTDC Ltd (ASX: NXT)
A final ASX share to consider buying for exposure to the cloud computing boom is NEXTDC. It is an innovative data centre operator which operates a collection of world class sites in key locations across Australia. Demand for its services has been growing very strongly in recent years and particularly in 2020 during the pandemic. This has led to the announcement of major contract wins and the construction of new data centres to cope with demand.
5 stocks under $5
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And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
- These were the best performing ASX 200 shares last week
- 2 exciting ASX tech shares with enormous potential
- Why the NextDC share price jumped 10% higher in June
- 3 high quality ASX 100 shares to buy right now
- Where to invest $1,000 in ASX tech shares today
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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