The Australian tech sector has once again been a great place to invest your money in 2019.
Since the start of the year the S&P/ASX 200 Info Tech index has generated a mouth-watering return of 37%.
The good news is that I believe there are a number of shares in the tech sector that have the potential to generate market-beating returns again in 2020 and over the next decade.
Here are three top ASX tech shares to buy:
Altium Limited (ASX: ALU)
Altium is the fast-growing electronic design software company behind the hugely popular Altium Designer product. This award-winning printed circuit board (PCBs) design software has seen its user numbers grow rapidly in recent years thanks to the Internet of Things (IoT) boom. With Statista forecasting the IoT market to be worth US$1.6 trillion in 2025, up from US$212 billion in 2019, I believe demand for Altium Designer will continue to grow strongly over the next decade. Combined with its other growing businesses, I am confident Altium can achieve its aspirational revenue target of $500 million by FY 2025. This compares to its guidance of US$205 million to US$215 million in FY 2020.
Nearmap Ltd (ASX: NEA)
Another tech share to consider buying is Nearmap. It is a leading aerial imagery technology and location data company that has been growing at an exceptionally strong rate in recent years. This strong form has continued in FY 2020, with management recently confirming that it expects annualised contract value (ACV) to be in the range of $116 million to $120 million. This represents growth of 28.6% to 33% on FY 2019's ACV of $90.2 million. This is still only a fraction of the global aerial imagery market which is estimated to be worth US$10.1 billion in 2020.
Xero Limited (ASX: XRO)
A final tech share to consider buying is Xero. Xero is a leading provider of online accounting software and has been growing at a very strong rate in recent years. This has continued in FY 2020, leading to Xero reporting strong sales and subscriber growth in the first half. In fact, Xero has now surpassed 2 million subscribers globally. And given the quality and stickiness of its product, I'm confident that its strong growth will continue for some time to come.
