The tech sector has been booming this year, but that doesn't mean it is too late to invest in this side of the market.
In fact, some big returns could be on offer from the ASX 200 tech stocks listed below according to analysts.
Here's what they are recommending as buys:
Life360 Inc (ASX: 360)
The first ASX 200 tech stock that could be a quality option for investors is Life360. It is the location technology company behind the eponymous Life360 family tracking app, which has over 70 million active users.
Last month, Life360 released its latest quarterly update and revealed that its stunning growth has continued. It reported a 20% increase in revenue to US$84.9 million. This was stronger than expected and led to management upgrading its guidance for the full year.
And with the company recently launching an advertising business to monetise its vast user base, analysts believe Life360's growth can continue for some time to come.
It is for this reason that Bell Potter continues to recommend Life360 to investors. It has a buy rating and $20.50 price target on Life360's shares, which implies potential upside of 22% for investors.
NextDC Ltd (ASX: NXT)
Another ASX 200 tech stock that could be a buy this month is NextDC. It is a technology company enabling business transformation through innovative data centre outsourcing solutions, connectivity services, and infrastructure management software.
Macquarie is very positive on the company's outlook and believes it is well-positioned to benefit from increasing demand for data centre capacity. This is being driven by the shift to the cloud and the artificial intelligence boom, which includes a new breed of hyperscale customers (GPU Cloud and ChatGPT-type providers) entering the market.
The broker currently has an outperform rating and $21.20 price target on NextDC's shares. This suggests that upside of 25% is possible over the next 12 months.
Xero Ltd (ASX: XRO)
A third and final ASX 200 tech stock that could be a great option for a $10,000 investment is Xero. It is a growing cloud accounting platform provider with 4.2 million subscribers across the globe. Xero's software connects small business owners with their numbers, their bank, and advisors at anytime.
Goldman Sachs rates Xero very highly due to the quality of its platform and is huge growth opportunity. It highlights that the company's market opportunity is ">100mn SMBs worldwide representing a >NZ$100bn TAM." This means that it is only scratching at the surface of its global market opportunity right now, which provides it with decades of growth.
The broker currently has a buy rating and $180.00 price target on its shares. This implies potential upside of approximately 22% for investors from current levels.
