One area of the Australian share market which I am especially positive on is the tech sector.
I believe there are a number of companies in this sector that have the potential to grow materially over the next decade.
With that in mind, here are three top ASX tech shares I would buy this month:
Altium Limited (ASX: ALU)
Altium is a printed circuit board (PCB) design software provider. It is the company behind the popular Altium Designer platform. This award-winning platform is used by companies across the world to effortlessly connect with every facet of the PCB design process. PCBs are the small boards that can be found inside almost all electronic devices. Given how 5G internet is underpinning the rapid rise of connected devices globally, demand for its software looks set to grow strongly over the next decade. This should drive strong earnings growth as it scales.
Megaport Ltd (ASX: MP1)
Another company with the wind in its sails is Megaport. It is an elasticity connectivity and network services company. This service allows its customers to increase and decrease their available bandwidth in response to their own demand requirements. This is proving very popular with companies that would prefer to not be tied to fixed service levels on long-term and expensive contracts. Demand has been very strong for Megaport's services over the last few years and this has continued in FY 2020. In the first half of FY 2020, Megaport reported revenue of $25.9 million. This was an increase of 70% on the prior corresponding period. I expect more of the same in the coming years thanks to the large amount of computer infrastructure going from local servers to cloud providers.
Nearmap Ltd (ASX: NEA)
A final tech share to consider is Nearmap. It is a leading aerial imagery technology and location data company. Over the past few years it has been growing at an extraordinary rate. Unfortunately this run looks set to come to an end this year due to the loss and downgrade of a few large contracts. While this is disappointing, there's no denying that its long term growth prospects are positive. And with the company aiming to be cash flow positive in the very near future, now could be an opportune time to invest.
