Here are 3 tech shares which could be the blue-chips of tomorrow

The Australian share market is home to a number of high quality tech shares. Some of which have such strong growth prospects I believe they could be the blue-chip shares of tomorrow.

Here’s why I think they could be great buy and hold investments:

Nextdc Ltd (ASX: NXT)

I believe this leading data centre operator is in a strong position to deliver strong earnings growth for the next decade. As more and more businesses migrate their services over to the cloud, I believe NEXTDC will continue to see demand for its services increase. In the first-half of FY 2017 the company reported a 32% rise in contracted utilisation to 30 megawatts. This led to the company posting an incredible 110% increase in half-year EBITDA to $23.9 million. While its shares are expensive, I believe its growth potential justifies the premium.

Webjet Limited (ASX: WEB)

This fast-growing travel agent has been a big winner from the incredible rise in online travel bookings. Such is the case that earlier this year Webjet reported market share gains and bookings growth from all of its businesses. This led to the company posting an impressive 96% jump in half-year net profit after tax. Like NEXTDC, its shares are a little on the expensive side following strong gains in the last 12 months. But with the second-half expected to be equally strong, I think Webjet is a company worth paying a premium to own.


Xero is a provider of cloud-based accounting software for small to medium enterprises. The company has been growing very strongly in the last few years and just recently broke through the 1 million subscribers mark. While Xero has had a lot of success in the ANZ and UK markets, it is still only just getting started in the key North American market. If the company can replicate its local success in this key market, then I believe it can grow significantly over the next few years.

As well as NEXTDC, Webjet, and Xero, I believe these exciting growth shares could be good investment options today.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro owns shares of Nextdc. The Motley Fool Australia owns shares of Xero. 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 Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.