If you’re looking to take advantage of recent weakness in the tech sector, then it could be worth taking a look at the two shares listed below.
Here’s what you need to know about these tech shares:
Altium Limited (ASX: ALU)
The first ASX tech share to look at is Altium. It is the printed circuit board (PCB) design software provider behind the popular Altium Designer and cloud-based Altium 365 platforms.
PCBs are found inside almost all electronic devices. So, with the Internet of Things and artificial intelligence markets underpinning an explosion in electronic devices globally (an estimated 127 devices hook up to the internet for the first time every second), demand for Altium’s best in class platform looks set to increase strongly in the future.
Management appears confident this will be the case. In fact, it is aiming to more than double its revenue to US$500 million by 2025.
The team at Bell Potter is positive on Altium’s outlook. This led to the broker upgrading the company’s shares to a buy rating with a $40.00 price target last week.
Its analysts “forecast continued strong revenue growth in the high teen percentages in FY23 and FY24 and >20% EBITDA growth in each of these periods on the back of anticipated further margin expansion.”
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
Another tech option to consider is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to a portfolio of the largest companies involved in video game development, eSports, and related hardware and software globally.
The fund manager highlights that these companies are in a position to benefit from the increasing popularity of video games and eSports. And when it says popular, it means popular. VanEck estimates that there are 2.7 billion active gamers in the world. This is more than Netflix subscriptions and active Apple devices.
Among the ETF’s major holdings are graphics processing units (GPU) giant Nvidia and games developers Take-Two Interactive (GTA, Red Dead), Electronic Arts (FIFA, Sims, Apex Legends), and Roblox.
The post 2 quality ASX tech shares for investors after the selloff appeared first on The Motley Fool Australia.
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More reading
- What are brokers expecting for ASX tech shares this earnings season?
- 3 buy-rated ASX 200 shares with plenty of upside potential
- Why this broker just upgraded Altium (ASX:ALU) shares to a buy rating
- 2 ASX 200 shares that could be top buys for growth
- 2 fantastic ASX growth shares to buy now
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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