Over the last 12 months the S&P/ASX 200 Information Technology index has provided investors with a return of 25.7% despite the pandemic.
This compares very favourably to a disappointing 10% decline by the S&P/ASX 200 Index (ASX: XJO) over the same period.
The good news is that I’m confident this outperformance can continue over the coming years. As a result, I think it would be a good idea to have decent exposure to the tech sector.
But which ASX tech shares should you buy? Three of my favourites are listed below:
Altium Limited (ASX: ALU)
The first ASX tech share to buy is Altium. It is an award-winning printed circuit board (PCB) design software provider. I think it is a strong buy due to its leadership position in a market exposed to the Internet of Things boom. I expect the proliferation of electronic devices to lead to increasing demand for its software over the next decade.
Appen Ltd (ASX: APX)
Another ASX tech share to buy is Appen. Its million-plus team of crowd sourced experts prepare the data that goes into the artificial intelligence and machine learning models of some of the biggest tech companies in the world. Given how these markets are expected to grow materially in the future, Appen looks well-placed to profit.
Megaport Ltd (ASX: MP1)
Finally, I think Megaport is an ASX tech share to buy. It is an elasticity connectivity and network services company. Its service allows users to increase and decrease their available bandwidth in response to their own demand requirements. This means users don’t need to be tied to a fixed service level on long-term and expensive contracts. Demand for its service has been growing very strongly thanks to the accelerating shift to the cloud, leading to stellar recurring revenue growth.
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
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
- How you can take advantage of the surging Australian dollar
- Get rich with these stellar ASX growth shares
- Where to invest $20,000 into ASX shares right now
- Why Kogan and these popular ASX shares just hit record highs
- 5 things to watch on the ASX 200 on Wednesday
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 and recommends Altium and MEGAPORT FPO. The Motley Fool Australia owns shares of Appen Ltd. 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.
The post Why I would buy Appen and these ASX tech shares right now appeared first on Motley Fool Australia.
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