2 ASX 200 tech shares I'd like to buy today

ASX 200 tech shares have been on a rollercoaster ride in 2020 but here's why these 2 companies are on my watchlist today.

| More on:
Circuit board altium share price

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

S&P/ASX 200 Index (ASX: XJO) tech stocks have been volatile in 2020, but it has been a mixed bag of performances. Not every ASX 200 tech share has performed as well as Afterpay Ltd (ASX: APT) this year, which means there are many still in the buy zone.

Here are a couple of my top picks that are trading at a good price today.

2 ASX 200 tech shares I'd like to buy today

I think Xero Limited (ASX: XRO) shares are worth a look right now. The Xero share price has rocketed 343.86% higher in the last 5 years but has edged just 6.25% higher in 2020.

Xero provides accounting software platform to small and medium-sized businesses and could see steady earnings despite the coronavirus pandemic.

While some customers may not renew their subscriptions, I think the complexity arising from the JobKeeper stimulus package could be where Xero comes into its own. That's good for earnings and the Xero share price.

I also like the look of Altium Limited (ASX: ALU) shares right now.

Altium provides electronics design software for engineers who design printed circuit boards. As the global economy emerges from hibernation, I think business could pick up again for this Aussie tech group.

Altium shares are up 19.77% this year, which means its already a strong performer. However, it is currently trading at $37.02 per share (at the time of writing), compared to an all-time high of $42.76.

I think Altium could be an ASX top 50 or even top 20 share within the next decade. With a $4.85 billion market capitalisation right now, Altium is well-placed to capitalise on the changing tech scene here in Australia.

Foolish takeaway

Both Altium and Xero are successful ASX 200 tech shares that have rocketed higher in recent years.

However, I think a recovering economy and strong client base could be the key to boost both share prices even higher in 2020.

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. 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.

More on Technology Shares

Man with rocket wings which have flames coming out of them.
Technology Shares

Guess which ASX All Ords share is rocketing 16% on an asset sale

This share is catching the eye with a very big gain on Friday. But why is it rising?

Read more »

a man clasps his hand to his forehead as he looks down at his phone and grimaces with a pained expression on his face as he watches the Pilbara Minerals share price continue to fall
Technology Shares

Why are Megaport shares sinking 14% on Friday?

Why are investors hitting the sell button? Let's find out.

Read more »

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Why today is a big day for this ASX 200 AI stock

This company stands to benefit from 'one of the most profound transformations in the history of technology'.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Technology Shares

Why are WiseTech Global shares crashing almost 20% today?

Recent controversy has led to delays to an important launch and hit its revenues.

Read more »

Woman with speaker
Technology Shares

After falling 62%, this leading ASX 200 share could be gearing up for growth!

This industry-leading company looks like a turnaround opportunity to me.

Read more »

A man has computer-generated images rushing through his head indicating an AI (Artificial Intelligence) concept of a communication network.
Technology Shares

ASX investors are obsessed with Nvidia shares! Here's why

The global chipmaker reported a 94% increase in annual revenue in the third quarter.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Technology Shares

Own WiseTech shares? Here's what to watch at Friday's AGM

This could be one of the major events of the year.

Read more »

Woman and man calculating a dividend yield.
Technology Shares

This ASX tech stock is down 93% from its highs. Could Trump tariffs give it a boost?

The ASX tech stock could enjoy tailwinds from Trump’s threatened tariffs.

Read more »