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3 of the best ASX tech shares to buy in July

Although the United States is the undisputed leader when it comes to technological innovation, it is worth noting that a number of ANZ companies are making their mark in the world of technology.

Three exciting tech companies that I think are definitely worth considering as long-term investments are listed below. Here’s why I would buy them:

Altium Limited (ASX: ALU)

The first tech share to consider buying is Altium. It is an award-winning printed circuit board (PCB) design software provider which has over 30 years of continuous research and development in PCB design. The company is aiming to leverage this experience to achieve market dominance in PCB design by 2025. Given the quality of its offering, I feel confident Altium will achieve this and generate above-average earnings growth over the next few years. Supporting the core business will be its growing Nexus and Octopart businesses. The latter is a search engine for electronic and industrial parts and has a significant market opportunity.

Appen Ltd (ASX: APX)

Another ASX tech share which I think would be a fantastic long-term option is Appen. It is a global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence (AI). The company estimates that the AI market will grow to be worth between US$169 billion and US$191 billion per annum by 2025. This is great news for Appen, as an estimated 10% of this spending is expected to relate to the data labelling that Appen is a leader in. If the company can maintain its leadership position, then I expect it to lead to above-average profit growth for a long time to come. This could mean there is still significant upside for the Appen share price over the 2020s.

Xero Limited (ASX: XRO)

A final tech share to consider buying is Xero. I believe the cloud-based business and accounting software provider is capable of growing its sales at an above-average rate over the 2020s. This is thanks to the quality and growing popularity of its software and its massive global market opportunity. Another positive is the favourable industry tailwinds. A recent study shows that the Cloud Accounting Software market is predicted to grow at a 6.8% compound annual growth rate through to 2025. I feel this bodes well for the Xero share price over the coming years.

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

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

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