The ASX is home to a growing number of exciting tech companies. Each year the list seems to get bigger. ASX tech shares were dominated by traditional sectors of telecommunications and IT services just a decade ago. However, since then, sector coverage has expanded significantly. It now also includes companies linked with a growing number of industries. Think data centres, cloud computing, the Internet of Things (IoT), logistics, and the buy now pay later (BNPL) industry.
NEXTDC has evolved over the past decade to be Australia’s largest local data centre provider. Global international data centre providers like Equinix, Global Switch and Digital Realty dominated the market by 5-10 years ago. However, NEXTDC has grown significantly during that time. It now rivals these providers in terms of market scale and data centre efficiency.
The company has a nationwide network of Tier III and Tier IV data centre facilities throughout Australia. It continues to expand rapidly with a number of data centres under construction.
NEXTDC recently completed a $672 million equity raising. This will further assist in its expansion strategy.
Appen has evolved to become a global leader in providing data with respect to machine learning and artificial intelligence (AI).
This ASX tech company services a range of industry players. This includes major technology companies such as Apple (NASDAQ: AAPL), automakers, and governments. For example, Appen assists Apple and Alphabet’s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google in training their virtual assistants like Siri in how to interact with their users.
In a market update in late May, Appen revealed that there has been minimal impact on its major customers to date during the coronavirus pandemic.
I believe that Appen is very well placed to see continued strong growth, driven by the rising demand for artificial intelligence products.
Another ASX tech share that I would consider adding to your share portfolio is Altium. This tech company designs software that enables engineers to produce printed circuit boards (PCBs) for a broad range of devices. This includes everything from computers to cars and an increasing number of devices that make up the ‘Internet of Things’ (IoT).
Altium revealed in a May update, that it possibly won’t reach its aspirational goal of US$200 million in total revenue during FY 2020. This is a result of the current challenging economic consequences. Despite this, I believe the long-term future for Altium is very bright, driven by the rapidly expanding IoT market.
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Phil Harpur owns shares of Altium, Appen Ltd, and NEXTDC Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium. The Motley Fool Australia owns shares of Appen Ltd. 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.