The S&P/ASX200 Information Technology Index (ASX: XIJ) has soared 29% higher in 2019 led by strong share price gains from the likes of Afterpay Touch Group Ltd (ASX: APT), Altium Ltd (ASX: ALU), Appen Ltd (ASX: APX) and Nearmap Ltd (ASX: NEA).
Why are these ASX tech shares soaring higher?
Nearmap has been the ASX's top performing share price so far this year as it has soared 133% to $3.56 per share on the back of strong earnings and continued client base growth.
I'm quite bullish on Nearmap despite the company having already soared 7,040% since its IPO in September 2005 with the potential to climb even higher in the second half of the year.
The broadly strong start to the year for domestic and global equities has helped boost the Altium share price 47% higher to $31.93 and the share price hit a 52-week high of $35.59 in mid-March 2019.
I think the growth prospects remain strong for Altium and it could continue to outperform its S&P/ASX200 constituents throughout the year.
Fellow hot tech stock Appen has seen its share price climb 86% to $23.86 per share as it too has exceeded even its upgraded earnings guidance as demand for artificial intelligence and machine learning capabilities in the corporate world has boosted sales and fuelled share price growth.
The Afterpay share price has more than doubled its $12.00 valuation at the start of the year and is currently trading at $26.21, just shy of its $28.70 52-week high achieved in early May.
Is it too late to jump into the tech sector?
While many growth stocks have struggled so far this year, the tech sector continues to outperform and shows no sign of slowing down.
The likes of Afterpay, Altium and Appen have rocketed higher but I think they could go even further given strong earnings and the economy holding up for the time being.
The biggest risk for investors in the tech sector is if these companies are unable to turn their potential into future cash flows and ultimately, cash return on investment.
With so much of the share price being tied to the growth potential of these companies rather than the fundamental earnings capabilities at present, I think it's wise to look at these 4 companies with strong management teams and a clear vision for future positive free cash flow.
For those growth investors out there, I think Fools should consider this buy-rated stock that could soar higher in 2019 as it tries to capture a piece of the $22 billion cannabis industry.
