The ASX tech sector continues to be one of the top performing sectors on the ASX, particularly during the coronavirus pandemic.
In this article I will take you through 2 of my top ASX tech share picks right now: Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX).
Altium
The Altium Limited (ASX: ALU) share price was significantly hit during the first month of the coronavirus pandemic. During that time, the share price of the electronic design software company lost around 40% of its value. Since that period, however, it has regained around half of those losses.
Altium recently delivered a very solid set of financial numbers for FY 2020, despite the challenges of the pandemic. The ASX tech share was able to record a 10% increase in revenue to US$189 million. This means that Altium has now recorded 8 consecutive years of double-digit revenue growth. Customer growth also continued strongly. Altium’s Designer platform saw a 14% increase in new seats sold, while its overall subscriber base grew by 17% to over 50,000.
I believe that the Altium growth story is set to continue over the next 5 years, driven by the growing global demand for smart connected devices. With its share price still below pre-COVID 19 levels, Altium is in my buy zone right now.
Appen
Appen is a global leader in providing data for use in machine learning and artificial intelligence (AI). Appen’s business models spans across a range of industries, including technology, automotive, and government sectors.
Despite a drop during the early phase of the pandemic, the Appen share price has performed very strongly during 2020. Since the beginning of the year, it has risen from $22.46 to be trading at $35.68 at the time of writing. That’s a whopping increase of nearly 60%.
Appen recently indicated that the pandemic has not had a significant impact so far on its business operations.
Despite its strong recent rise, the Appen share price remains in my buy zone right now. I believe that Appen is positioned to grow strongly over the next 5 years, driven by the rising global demand for AI products and machine learning markets.
Foolish takeway
Both Appen and Altium are 2 ASX tech shares that I would be happy to add to my ASX share portfolio right now. Both companies have entrenched market positions in far reaching global markets that continue to expand.
In addition, I believe that both companies are well positioned to tap into the rising demand for IoT devices, driven by the growing trend of cloud computing.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
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More reading
- 4 ASX 200 shares to buy with $4,000
- Want to beat the market? Try these 3 ASX growth shares
- Top brokers name 3 ASX shares to buy next week
- Is Altium a millionaire maker share at this price?
- How I’d build a $100,000 ASX portfolio of growth shares
Phil Harpur owns shares of Altium and Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium. The Motley Fool Australia owns shares of Appen Ltd. 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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