2 ASX 200 tech shares I'd like to buy today

ASX 200 tech shares have been on a rollercoaster ride in 2020 but here's why these 2 companies are on my watchlist today.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

S&P/ASX 200 Index (ASX: XJO) tech stocks have been volatile in 2020, but it has been a mixed bag of performances. Not every ASX 200 tech share has performed as well as Afterpay Ltd (ASX: APT) this year, which means there are many still in the buy zone.

Here are a couple of my top picks that are trading at a good price today.

Circuit board altium share price

Image Source: Getty Images

2 ASX 200 tech shares I'd like to buy today

I think Xero Limited (ASX: XRO) shares are worth a look right now. The Xero share price has rocketed 343.86% higher in the last 5 years but has edged just 6.25% higher in 2020.

Xero provides accounting software platform to small and medium-sized businesses and could see steady earnings despite the coronavirus pandemic.

While some customers may not renew their subscriptions, I think the complexity arising from the JobKeeper stimulus package could be where Xero comes into its own. That's good for earnings and the Xero share price.

I also like the look of Altium Limited (ASX: ALU) shares right now.

Altium provides electronics design software for engineers who design printed circuit boards. As the global economy emerges from hibernation, I think business could pick up again for this Aussie tech group.

Altium shares are up 19.77% this year, which means its already a strong performer. However, it is currently trading at $37.02 per share (at the time of writing), compared to an all-time high of $42.76.

I think Altium could be an ASX top 50 or even top 20 share within the next decade. With a $4.85 billion market capitalisation right now, Altium is well-placed to capitalise on the changing tech scene here in Australia.

Foolish takeaway

Both Altium and Xero are successful ASX 200 tech shares that have rocketed higher in recent years.

However, I think a recovering economy and strong client base could be the key to boost both share prices even higher in 2020.

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of Altium. 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.

More on Technology Shares

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Technology Shares

Why two experts are urging investors to buy Pro Medicus shares

Let's see what they are saying about this beaten down market darling.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Technology Shares

Are investors running scared of WiseTech shares?

After a major pullback, WiseTech could be entering a more interesting phase.

Read more »

Concept image of a businessman riding a bull on an upwards arrow.
Technology Shares

Why are ASX 200 tech stocks like WiseTech and Life360 going gangbusters on Wednesday?

Investors are piling back into ASX 200 tech stocks today. But why?

Read more »

A man and a woman sitting in a technology-related work environment high five each other while the man wears headphones around his neck and the woman sits in front of a laptop.
Technology Shares

Tech rebound: Bell Potter says this ASX 300 stock is a top buy

The broker thinks now could be a good time to buy this beaten down tech stock.

Read more »

A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.
Technology Shares

Is this smashed ASX tech stock gearing up for a hefty comeback?

If confidence returns, the tech share could be tripling in value.

Read more »

Woman with her fingers crossed and eyes shut.
Technology Shares

Xero, WiseTech shares jump higher today: Is this the beginning of a rebound?

It's been a bloodbath for ASX tech shares so far in 2026.

Read more »

Military engineer works on drone.
Technology Shares

EOS shares rebound after a surprise twist in its South Korean laser deal

New US defence wins help EOS shares recover after early drop.

Read more »

Buy now written on a red key with a shopping trolley on an Apple keyboard.
Technology Shares

3 ASX tech stocks that belong in every long-term portfolio

Brokers remain optimistic and see up to 130% upside.

Read more »