The tech sector has been one of the best places to invest in 2019. Since the start of the year the S&P/ASX 200 Info Tech index has generated a return of 32%.
Despite this strong gain, I still believe there are a number of tech shares that are capable of generating market-beating returns over the next few years.
Three to consider buying in August are as follows:
Altium Limited (ASX: ALU)
Although Altium's shares trade at a premium and better entry points could open up in the near term, I still think it would be a great long-term investment due to its position as the leading design software platform provider in the Internet of Things (IoT) industry. This industry is expected to grow materially over the next decade due to the proliferation of smart devices. According to research firm Statista, the IoT market is expected to increase to 75 billion devices in 2025, up from 23 billion devices in 2018. I expect this to lead to increasing demand for its software, which should drive strong earnings growth over the long term.
NEXTDC Ltd (ASX: NXT)
NEXTDC is another tech share which looks expensive on paper but could prove to be good value over the long term if the cloud computing boom continues to accelerate. This is because as cloud computing use increases, demand for NEXTDC's innovative data centre outsourcing solutions and connectivity services is likely to increase significantly and drive strong earnings growth as it scales.
Xero Limited (ASX: XRO)
Another tech share to consider buying in August is this cloud-based business and accounting software provider. I was very impressed with the company's performance in FY 2019 and believe it is well positioned to repeat its heroics in the new financial year. This is due to the quality and stickiness of its product, the shift to online accounting, and its large market opportunity.
