These ASX tech shares could take your portfolio to the next level

If you’re looking to beat the market over the long term, then I think the tech sector is a great place to look for investment ideas.

This is because there are a decent number of shares in this sector which have the potential to grow their earnings at a rapid rate for many years to come.

But given the growing number of options to choose from, it can be hard to decide which ones to buy.

To narrow things down, I have picked out two tech shares which I think could smash the market throughout the 2020s. They are as follows:

Altium Limited (ASX: ALU)

Altium is a printed circuit board (PCB) design software provider with enormous potential. Virtually every electronic product is constructed with one or more PCB. These boards act as the carrier for everything from electronic components to microchips. As the design of PCBs become more and more complex, devices require sophisticated electronic design automation software such as Altium Designer.

Given the proliferation of electronic devices due to the Internet of Things boom, the future looks very bright for Altium’s award-winning software. Management appears confident that this will be the case. It expects there to be 50,000 software subscriptions at the end of FY 2020. It is then aiming to double this to 100,000 by FY 2025. Given the quality of its product and favourable industry tailwinds, I wouldn’t bet against the company achieving this.

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company. It allows businesses to instantly access high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. The beauty of this product is that it means users can conduct accurate virtual site visits without leaving the home or office. This ultimately enables informed decisions, streamlined operations, and, importantly, significant cost savings.

This morning the company revealed that it is on course to achieve annualised contract value of $103 million to $107 million in FY 2020. This is barely even scratching at the surface of the global aerial imagery market which is estimated to be worth US$10.1 billion this year. I believe its quality offering, which is about to be bolstered by the release of Nearmap AI, puts the company in a position to capture a growing slice of this market over the next decade.

More reading

• Why ANZ, Blackmores, IDP Education, & Nearmap shares are racing higher
• Why the Nearmap share price has surged 15% higher today
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• Why you shouldn’t fear an ASX share market crash
• What would $50,000 invested in the ASX 200 a decade ago be worth today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Altium. 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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