I think that one of the most exciting areas to invest at the moment is the tech sector.
In this area there are a good number of companies with the potential to grow strongly over the next decade and generate outsized returns for shareholders.
Three tech shares that I would buy this month are listed below. Here's why I like them:
Altium Limited (ASX: ALU)
One of my favourite tech shares on the ASX is Altium. It is a leading a provider of printed circuit board (PCB) design software globally. I believe it could be a great long term investment due to its exposure to the Internet of Things market which is growing at an astonishing rate. As the majority of connected devices require PCBs inside them, I believe demand for Altium's award-winning software will continue to grow strongly and underpin strong profit growth as it scales.
Appen Ltd (ASX: APX)
Another top tech share to buy is this global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence. I believe it is another great buy and hold option due to its position in an artificial intelligence market expected to grow to be worth up to US$191 billion by 2025. With approximately 10% of this spending estimated to relate directly to Appen's services, I believe it is well-placed to continue its impressive earnings growth for many years to come.
Xero Limited (ASX: XRO)
A final tech share to consider buying is Xero. It is a cloud-based business and accounting software provider which has been growing at a very strong rate over the last few years. Pleasingly, I believe the quality of its software, its global expansion, and the shift to online accounting means Xero can continue this strong growth for many years to come. Especially if it can win a decent share of the lucrative U.S. market.
