One area of the market which I'm especially bullish on over the long term is the tech sector.
I believe the Australian tech sector is home to a large number of companies with outstanding long term growth potential.
Three of my favourites are listed below. Here's why they could be the best tech shares to buy on the ASX right now:
Altium Limited (ASX: ALU)
One of my favourite tech shares on the Australian share market would have to be Altium. I believe it is well-positioned to deliver strong long-term earnings growth thanks to its exposure to the Internet of Things market which is expected to increase significantly over the next decade. As the market gets bigger, I believe demand for Altium's award-winning printed circuit board (PCB) design software will grow strongly. After all, almost all connected devices have PCBs inside them.
Appen Ltd (ASX: APX)
Appen is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. It counts some of the biggest tech companies in the world as customers such as Facebook and Microsoft. Given the importance of machine learning and the expected growth in its usage, I believe Appen is well-positioned to continue its impressive growth for the foreseeable future.
Xero Limited (ASX: XRO)
Another of my favourite tech shares on the Australian share market is this cloud-based business and accounting software provider. Xero has been growing at an impressive rate over the last five years, growing sales by an average of over 50% per annum. Pleasingly, this solid growth has continued in FY 2019 with Xero reporting a 37% jump in first half revenue to $256.5 million thanks to the addition of 193,000 net subscribers and a 6% lift in its average revenue per user metric. Given the quality of its product and the continued shift to online accounting from small to medium sized businesses and accountants, I expect more of the same in the second half and beyond.
