6 hot tech shares to generate long-term wealth

One of most significant changes in business is happening now and is affecting all businesses globally. Find out which ASX companies are perfectly poised to capitalise on this period in time that we may soon call the 'Information Revolution'.

| More on:
a woman

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

Today our world is being shaped by inventions such as; quantum computers, 3D printing, nanotechnology, augmented reality, and artificial intelligence.

If we look at these advancements from the 21st century there is always a common denominator. I am talking about information.

The way in which we manage, store, access, utilise and interpret information is changing at an exponential rate. Without exponential advancements in computational power, storage capacity, and increased interconnectivity, none of these recent inventions would have been remotely plausible.

We only have to look as far as the blockchain technology and cryptocurrencies to see an entire industry being reshaped by the information age. Whilst most would consider this still to be in its early stages of adoption, there is no shortage of already established ASX-listed businesses that are at the forefront of the information age.

Data Storage / Hosting

One of the greatest challenges posed by the masses of information we are producing everyday is where and how do we store it? The two companies below provide a solution to this question which will likely see an insatiable demand for their services into the foreseeable future.

Nextdc Ltd (ASX: NXT)

Nextdc Ltd is one of Australia's leading data centre providers and has data centres in almost all capital cities across Australia. In addition, the company intends to open three additional state-of-the-art data centres this year. This will boost overall capacity to meet the rising demand for its services.

Dicker Data Ltd (ASX: DDR)

Dicker Data is a proudly Australian and founder-led business with 35 years' experience in Enterprise Data Solutions. With its primary revenue coming from the wholesale of computer and server hardware it offers another type of exposure to the ongoing demand for data housing.

Cloud Computing & Software Development

Software-as-a-Service companies are providing services that relieve companies from the burden of managing and interpreting masses of their own information and customer data. Here are two that are currently shaking up their respective industries.

XERO FPO NZX (ASX: XRO)

Xero is currently one of the fastest growing software as a service companies globally. Based in New Zealand the cloud based accounting software provider has over 1 million subscribers and is the market leader in Australia and New Zealand.

Aconex Ltd (ASX: ACX) 

Aconex Ltd realised every construction project inevitably produces a colossal amount of correspondence and documentation often needing to be dispersed to many parties and often relying on hardcopies. In response Aconex developed a tailored software-as-a-service collaboration platform for the construction and engineering industry.

Data & Analytics

As we produce more information over time it becomes increasingly difficult to analyse and interpret these giant sets of data. I believe these two companies provide some of the most interesting applications for data analysis.

Catapult Group International Ltd (ASX: CAT) 

Formed in 2006 the Catapult Group has taken what was previously a laboratory study of elite athletes and turned the company's sports analytics technology into a multi-million dollar multinational business. This technology enables elite athletes and sporting groups to gain insights into performance or injury risk and allows for automated statistical reporting.

Nearmap Ltd (ASX: NEA) 

Nearmap in an Australian founded company and a global leader in geospatial map technology and software. The company services a wide variety of business, enterprise and government customers globally. The company's aerial imaging software is allowing businesses globally to interpret data and information from aerial and satellite imagery in entirely new ways.

Foolish takeaway

It is important to note that as with almost all companies that have high growth prospects many that I have mentioned are currently unprofitable or carry inflated P/E ratios as result of their growth trajectories. For long-term investors with some appetite for risk I believe any of these could be a great addition within a diversified portfolio at the right price.

Motley Fool contributor Tim Wilks owns shares in XRO and NEA. The Motley Fool Australia owns shares of ACONEX FPO, Dicker Data Limited, Nearmap Ltd., and 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.

More on ⏸️ Investing

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

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »