The top performing ASX 200 tech shares of 2020 

COVID-19 has accelerated tailwinds for many ASX 200 tech shares. Here we take a look at which 4 delivered the best share price gains in 2020.

| More on:
outperforming asx share price represented by row of white eggs with cartoon sad faces with one gold egg with happy face and crown

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

From booming online sales to working from home, COVID-19 accelerated a range of trends that benefitted ASX 200 tech shares at large. This saw the S&P/ASX 200 Information Technology Index (ASX: XIJ) soar more than 50% in 2020. As we commence a brand new year, let's take a look at best performing ASX 200 tech shares that beat the market many times over in 2020. 

Best performing ASX 200 tech shares 

1. Afterpay Ltd (ASX: APT) 

It comes as no surprise that the Afterpay share price tops 2020's list of the best performing ASX 200 tech shares after an almost 300% increase last year. More recently, the company exceeded $2 billion of global sales in the month of November, more than doubling the $1 billion of underlying sales delivered in November 2019.

It will be interesting to see how the Afterpay growth story plays out in 2021, including the way in which its acquisition of Pagantis in Europe and its developments in the South Asia region unfold.

2. NextDC Ltd (ASX: NXT

The NextDC share price comes in at second, finishing 2020 87% higher. At face value, the company boasts an outrageous valuation of around $5.5 billion on FY20 revenues of $205.2 million and a net loss after tax of $45 million.

Investors will be hoping, however, there are many redeeming factors that stand to benefit the the cloud provider and its growth trajectory moving forward. For instance, NextDC advised in its November 2020 annual general meeting that, between 2019 and 2023, global investment in public cloud services and infrastructure is expected to more than double. By 2023, $500 billion is the expected cost of public cloud, representing a compound annual growth rate of 22.3%.

3. Xero Limited (ASX: XRO

Xero is the third best performing ASX 200 tech share of 2020 with returns for the year sitting at 82%. The Xero share price surprised many after passing the $100 mark in September and then the $150 mark in December.  

While small businesses may have faced significant disruptions from lockdowns and social distancing throughout the year, Xero's subscriber numbers have continued to grow as though there was no pandemic. For the six months ending 30 September 2020, the company added 396,000 subscribers to total 2.453 million while Xero's operating revenue increased 21% to $409.8 million. 

4. Zip Co Ltd (ASX: Z1P) 

The Zip share price earns the title of fourth best ASX 200 tech share of 2020 after closing out the year 53% higher. This may come as a surprise as Zip shares seemingly went nowhere in the second half of 2020, underperforming broader ASX 200 tech shares. That said, the company did achieve some significant milestones, including completing its 100% acquisition of Quadpay to boost its exposure to the significant United States retail market opportunity.

Following its recent $120 million capital raising, investors will be hoping the Zip share price can regain some momentum in 2021 on the back of the company's expansion plans. These plans include acceleration of Zip's US growth, its much anticipated United Kingdom launch and a ramp up of its new markets division focused on exploring opportunities to expand into new geographies.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares finished the trading week on a high this Friday.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »

A woman puts her hands up as she smashes and breaks through a glass ceiling.
Share Gainers

How these 5 ASX 200 stocks are smashing the benchmark this week

These fives ASX 200 stocks have made some very happy shareholders this week. Here’s how.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

The markets lost their steam this Thursday.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Catapult, Hutchinson, SKS, and West African shares are pushing higher today

These shares are having a strong session despite the market weakness.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 72% in 2025, why is this ASX 200 gold stock racing ahead of the benchmark again today?

Investors are bidding up this high-flying ASX 200 gold stock again on Thursday. But why?

Read more »

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wonderful Wednesday session for investors today.

Read more »