3 ASX 200 tech shares to buy now before the market wakes up: expert

Investors are still nervous about technology shares. One fund manager recommends buying now before the sentiment turns.

| More on:
A man wakes up happy with a smile on his face and arms outstretched.

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

It's funny to think that technology stocks were all the rage only just a year ago but are completely out of favour now.

The S&P/ASX All Technology Index (ASX: XTX) had, in fact, risen a phenomenal 155% from the COVID-19 trough in March 2020 to November last year.

But over the past 12 months, the index has lost 28%.

However, with inflation looking to peak and the end of steeply rising interest rises in sight, many experts have tipped tech to make a comeback in 2023.

Still plenty of scepticism about tech

But as the old saying goes, "once bitten, twice shy".

On Thursday, the broader S&P/ASX 200 Index (ASX: XJO) rallied an impressive 0.96%, but tech shares missed out on the party.

In fact, Shaw and Partners portfolio manager James Gerrish noted that quite a few of them sold off.

"Altium Limited (ASX: ALU) opened close to $40 before sliding lower all day," he said in his Market Matters newsletter.

"In other words, at this stage investors are far from convinced that the tech sector can make a meaningful dent in the losses endured through 2022."

But the tide will turn sooner or later

But Gerrish considers Altium a buy right now, as the sentiment for technology will turn soon.

"Market Matters remains long and bullish on Altium," he said.

"We can see Altium testing well above $40 into Christmas."

The share price for the ASX 200 electronics design software provider has already risen 7.5% over the past month.

And it's not the only tech share he's keen on at the moment.

"We've chosen Altium to make our point here but it could easily have been Seek Limited (ASX: SEK) or REA Group Limited (ASX: REA)."

Gerrish had previously tipped both of those stocks to lead the tech resurgence heading into Christmas.

REA has indeed fit the bill, seeing its shares soar 4.8% over the past month. Seek has also done well, edging up 4.73%.

Motley Fool contributor Tony Yoo has positions in Seek. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has recommended Rea Group and Seek. 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

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

Why is this ASX fintech stock suddenly crashing 22%?

This stock is having a very bad start to the week. What's going on?

Read more »

Three businesspeople leap high with the CBD in the background.
Technology Shares

Guess which ASX All Ords stock is leaping 12% today

Why is this stock having a strong start to the week? Let's find out.

Read more »

A young man working from home sits at his home office desk holding a cup of tea and looking out the window
Technology Shares

Pro Medicus shares higher on $30m contract win

Good news is lifting this high-flying stock on Monday. Let's dig deeper into it.

Read more »

Robot humanoid using artificial intelligence on a laptop.
Technology Shares

The best ASX AI stock to invest $500 in right now

The team at Morgans thinks this is one of the best ways to invest in AI on the ASX.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Technology Shares

This ASX All Ords stock just crashed 25%! Here's why

Let's find out what is making investors rush to the exits on Thursday.

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Technology Shares

What's going on with Xero shares today?

The tech stock has made an announcement this morning relating to its CEO.

Read more »

Three analysts look at tech options on a wall screen
Technology Shares

Why did this small-cap ASX tech stock just explode 39%?

Investors are piling into the ASX tech stock on Wednesday. But why?

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Technology Shares

Investors should put these 2 top ASX tech shares on the watchlist

These tech companies have enormous potential, in my view.

Read more »