I think that one of the most promising areas of the share market to invest in at the moment is the tech sector.
In this area there are a good number of companies with the potential to grow strongly over the next decade. This could see them generate outsized returns for shareholders in the future.
Three mid cap ASX tech shares that I think are worth considering are listed below. Here's why I like them:
Audinate Group Limited (ASX: AD8)
Audinate is a $420 million digital audio-visual networking technologies provider. It has achieved very strong sales growth in recent years thanks to the increasing demand for its Dante product. This award-winning audio over IP networking solution is used widely across a number of industries globally. Unsurprisingly, demand for Dante has fallen materially during the pandemic. This led to the release of an underwhelming FY 2020 result in August. However, given its strong balance sheet, clear leadership position, and significant market opportunity, I think it could be worth being patient with the company.
Jumbo Interactive (ASX: JIN)
Jumbo Interactive is a $760 million online lottery ticket seller and the operator of the Oz Lotteries website. While this website is easily the biggest contributor of revenue at present, I expect this to change in the future. I believe its Powered by Jumbo SaaS business will be the key driver of growth over the 2020s. This business is in a strong position to benefit from the shift online of lotteries globally. Management estimates that it has a US$303 billion global total addressable market, with only 7% of this market online at the moment. Given the quality of its SaaS platform, I believe it has the potential to win a sizeable share of this market in the future.
Nearmap Ltd (ASX: NEA)
Nearmap is a $1.1 billion aerial imagery technology and location data company. I think it would be a great long term option due to the quality of its offering, new product releases, and its massive addressable market in North America. Combined with potential further geographic expansion and its transition into an insights and analytics provider, I believe Nearmap can be a very strong performer over the next decade.
