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3 fast-growing ASX tech shares to buy in June

The tech sector has been one of the best places to invest over the last 12 months. During this time the S&P/ASX 200 Info Tech index has generated a return of just under 30%.

Despite this strong gain, I still believe there are a number of tech shares that are capable of generating market-beating returns over the next 12 months.

Three to consider buying in June are as follows:

Altium Limited (ASX: ALU)

I think Altium would be a great long-term investment option due to its position as the leading design software platform provider in an Internet of Things industry which is expected to grow materially over the next decade. According to research firm Statista, the IoT market is expected to increase to 75 billion devices in 2025, up from 23 billion devices in 2018. I expect this to lead to increasing demand for its software, which should drive strong earnings growth over the long term.


Another tech share to consider is this data centre operator. I believe NEXTDC is well-placed to grow its profits at a strong rate over the next decade. This is because as the cloud computing boom accelerates, demand for NEXTDC’s innovative data centre outsourcing solutions and connectivity services is likely to increase significantly. In the first half of FY 2019 the company experienced a 28% increase in contracted utilisation and a 34% lift in interconnections, leading to underlying EBITDA growing 26% to $42.2 million.

Xero Limited (ASX: XRO)

Another tech share I would buy in June with a long-term view is this cloud-based business and accounting software provider. Earlier this month the company released its full year results and revealed a 36% increase in operating revenue to NZ$552.8 million and a 32% lift in annualised monthly recurring revenue (AMRR) to NZ$638.2 million. The company also reported that and its total subscriber lifetime value had lifted 36% to NZ$4.4 billion. Due to the quality of its product and its large market opportunity, I believe Xero can continue growing at an above-average rate for some time to come.

And here are two more exciting tech shares to consider buying in June.

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James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium and Xero. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Scott Phillips.

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