ASX tech shares seem to be all the rage right now. The Nextdc Ltd (ASX: NXT) share price has been surging higher in 2020 to lead the S&P/ASX 200 Index (ASX: XJO) outperformers.
But it's not just the Aussie data centre operator that I've got my eye on. I like a few of the top ASX tech shares right now but the key is to find those that are still good value.
Here are a few of my top picks that I like even at their current prices.
Nextdc and 2 other ASX tech shares to buy
I really like ASX tech shares with a strong underlying story. For Nextdc, I think that's the spectacular growth in demand for off-site data storage and security.
Australia is transitioning towards a semi-permanent work from home setup. That means more companies are going to look to use data centres as a core part of their business operations.
Nextdc is an incumbent in the industry and is well-placed for future growth. The company already provides connectivity and data centre services alongside technical support.
With the growth of cloud connectivity and collaboration tools, I think the ASX tech share may continue to climb in 2021.
Nextdc aside, I like the look of Xero Limited (ASX: XRO).
The Xero share price has jumped 15.3% higher this year and isn't far off its all-time high.
Google Finance suggests the ASX tech share currently trades at a price-to-earnings (P/E) ratio of 4,309.9. We won't get to see the Kiwi accounting software group's earnings until November.
That means it's something of a gamble but I wouldn't consider Xero a relative value play. Xero to me has long-term potential to transform the business world with simple accounting.
I think strong customer retention and acquisition is the key here. If Xero can continue to land big clients and deliver strong earnings, it could crack the $100 per share barrier.
Finally, Altium Limited (ASX: ALU) is on my watchlist after its full-year earnings result yesterday.
Altium reported strong revenue growth of 10% to $189 million and continues to be a printed circuit board software leader.
The ASX tech share increased its subscriber base by 17% and posted a record earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 40%.
I think this strong growth profile underpins the future potential of the Altium share price despite its lofty valuation.
Foolish takeaway
These are just a few of the ASX tech shares that I like at their current prices.
I'm sure we'll see more volatility in the years ahead, but I think a solid underlying business is the key to long-term success.
