If you're looking to a make a new addition or two to your portfolio, then you might want to take a look at the ASX shares listed below.
Here's what you need to know about them:
Appen Ltd (ASX: APX)
The first ASX share to look at is Appen. It is a developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Through its team of over 1 million crowd-sourced contractors, Appen develops the data required to create the AI models of some of the biggest tech companies in the world. An example of this, is its work helping Apple develop its Siri virtual assistant.
While the last 12 months have been difficult due to many tech giants pushing back some of their investments in AI because of the pandemic, demand is expected to rebound strongly once the crisis passes. After which, due to the growing importance of AI for businesses and governments, demand for its AI data services is predicted to grow rapidly over the next decade.
One broker that believes the recent weakness in the Appen share price is a buying opportunity is Ord Minnett. It recently upgraded its shares to a buy rating with a $24.75 price target.
NEXTDC Ltd (ASX: NXT)
Another ASX share to consider is NEXTDC. It is one of the region's leading data centre-as-a-service provider with 11 world class centres in key locations across Australia.
From these Tier III and Tier IV facilities, NEXTDC provides colocation services to local and international organisations.
Unlike Appen, NEXTDC has experienced a huge increase in demand for its services during the pandemic. This has been driven by the structural shift to the cloud, which has accelerated over the last 12 months. In fact, demand has been so strong, that the company brought forward capacity additions to meet it.
In addition to this, the company has opened up offices in Singapore and Tokyo with a view of expanding into these markets in the near future. If this expansion is a success, it could provide NEXTDC with a significant runway for growth.
Goldman Sachs is positive on the company. Last month it retained its buy rating and lifted its price target to $13.50. The broker believes NEXTDC is well-positioned for growth over the medium term.
