How I’d invest $5,000 across ASX tech stocks

If I had $5,000 to invest across ASX tech stocks today, I would want a mix of proven quality, recurring revenue, and long-term upside.

Technology shares can move around sharply, especially when investors are worried about valuations, interest rates, or artificial intelligence (AI). But I still think the right companies can be excellent long-term investments.

Rather than putting the full amount into one stock, I would spread it across three different ASX tech names: Pro Medicus Ltd (ASX: PME), SiteMinder Ltd (ASX: SDR), and Megaport Ltd (ASX: MP1).

Pro Medicus shares: $2,000

I would put the largest slice into Pro Medicus.

This is the quality anchor of the group, in my opinion. The company provides medical imaging software used by hospitals, radiologists, and healthcare networks. That might sound niche, but it is a critical part of modern healthcare.

What I like is how deeply embedded Pro Medicus can become once it wins a customer. Medical imaging systems need to be fast, reliable, and able to handle huge volumes of data. Hospitals cannot afford disruption in that part of the workflow.

That gives the business a strong position.

I also think Pro Medicus still has a significant runway in the US healthcare market. It has already won major customers, but the opportunity remains much larger than its current footprint.

The risk is valuation. Pro Medicus often trades on a premium PE ratio, so I would not expect it to be immune from pullbacks. But if I were investing with a 5-to-10-year mindset, I would still want exposure to this type of high-margin healthcare technology business.

SiteMinder shares: $1,500

I would then put $1,500 into SiteMinder.

This is a different kind of software story. SiteMinder helps hotels manage bookings, distribution, and revenue across multiple channels.

I think the appeal here is the size and fragmentation of the hotel industry.

Many hotels still need better digital tools to compete. They need to manage direct bookings, online travel agents, pricing, availability, and customer demand across different markets. SiteMinder sits inside that process.

What makes the business interesting to me is that it does not need to dominate one country to win. Its opportunity is global.

If SiteMinder can keep adding properties, increasing revenue per customer, and improving its platform, I think earnings could grow meaningfully over time.

It is still a developing business, so execution risk is higher than with Pro Medicus. But I like the combination of recurring revenue, global reach, and a large addressable market.

Megaport shares: $1,500

The final $1,500 would go into Megaport.

Megaport gives this mini portfolio exposure to digital infrastructure. The company provides network-as-a-service technology, allowing customers to connect quickly and flexibly to cloud providers, data centres, and other digital services.

I think this is becoming more relevant as businesses use multiple clouds, move data between environments, and build more complex digital systems.

Megaport is not simply selling connectivity. It is selling flexibility.

That could become increasingly valuable as cloud adoption, artificial intelligence workloads, and global data usage continue to expand.

The company’s Latitude.sh acquisition also adds an interesting layer. It gives Megaport exposure to bare metal cloud infrastructure, which could broaden its role in helping customers manage demanding workloads.

This is the more speculative pick of the three, but I think the upside is attractive if adoption continues to build.

Foolish takeaway

If I were investing $5,000 across ASX tech stocks, I would split it between quality, global software, and digital infrastructure.

Pro Medicus would be my largest position because of its profitability and strong niche in healthcare technology. SiteMinder would give me exposure to the global hotel software market. Megaport would add a higher-upside infrastructure angle.

Together, I think they offer a useful blend of resilience and growth potential for patient investors.

The post How I’d invest $5,000 across ASX tech stocks appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport and SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.