The tech sector has once again been one of the best places to invest your money over the last 12 months.
Despite the pandemic, during this time the S&P/ASX 200 Info Tech index has generated a return of over 22% for investors.
As a comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 10% over the same period.
The good news is that I believe this outperformance can continue for many years to come, which could make investing in the tech sector a great idea.
But which ASX tech shares should you buy? Two to consider buying are as follows:
Altium Limited (ASX: ALU)
The first ASX tech share to consider buying is Altium. I think it is a great long-term investment option due to its position as the leading electronic design software provider in an Internet of Things (IoT) industry which is expected to grow materially in the future.
According to research by McKinsey, the worldwide number of IoT-connected devices is projected to increase to 43 billion by 2023. This will be an almost threefold increase from 2018. I expect this to lead to increasing demand for its software, which should drive strong earnings growth over the long term.
Appen Ltd (ASX: APX)
Another ASX tech share which has exposure to a rapidly growing market is Appen. It is a global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence (AI).
According to a recent presentation, management expects the AI market to grow to be worth upwards of US$191 billion per annum by 2025. With approximately 10% of this spending estimated to relate directly to data labelling, I believe it is well-placed to continue its impressive earnings growth for many years to come. This could make the Appen share price a market beater over the 2020s.
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
- Top ASX dividend shares to buy in July 2020
- 3 must-buy ASX growth shares for July
- 2 ASX tech shares to buy and hold beyond 2025
- 3 top ASX growth shares I’ll buy if the ASX crashes again
- Top brokers name 3 ASX 200 shares to buy 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 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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