S&P/ASX 200 Index (ASX: XJO) shares are down 0.066% at 8,597.3 points in early trading on Monday.
ASX 200 tech shares delivered another outstanding performance for investors in FY25.
Technology was the second-best market sector for total returns last financial year.
The S&P/ASX 200 Information Technology Index (ASX: XIJ) lifted 23.89% and delivered total returns, including dividends, of 24.19%.
Tech shares vastly outperformed the benchmark S&P/ASX 200 Index (ASX: XJO).
The index lifted 9.97% in FY25, with total returns of 13.81%.
In this article, we check out 3 tech shares catching favour with these experts.
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Buy these 3 ASX 200 tech shares: experts
Xero Ltd (ASX: XRO)
Xero shares were among the 5 best-performing ASX 200 tech stocks of FY25, rising 32% to close at $179.80 on 30 June.
This tech juggernaut reached a record-high share price of $196.52 in June.
Peter Day from Sequoia Wealth Management has a buy rating on Xero shares.
On The Bull, Day discusses the global accounting software provider's $2.5 billion acquisition of the US-based Melio bill payments platform.
Day said Melio generated revenue of $US153 million in fiscal year 2025. Xero hopes the purchase will help it grow in the US market.
Day explains his buy rating:
We expect the acquisition to expand Xero's distribution capabilities via Melio's platform.
Access to new customers reinforces further brand investment potential.
The Xero share price is up 0.11% to $178.20 on Monday.
NextDC Ltd (ASX: NXT)
Shares in Australia's largest data centre, NextDC, lost value in FY25, falling 17.75% to close at $14.50 on 30 June.
In FY25, this ASX tech 200 share reached a 52-week peak of $18.58 in July 2024.
Toby Grimm of Baker Young says NextDC has just organised a $2.2 billion debt funding package to accelerate its growth.
The maturity date for the new debt facilities is 3 December 2030.
Grimm says:
While the use of debt increases risk, demand for artificial intelligence and data warehousing are structural tailwinds, which appear highly resilient.
Using debt signals management's confidence in continuing to attract growth, underpinning its international expansion.
The company has been enjoying favourable momentum, with the shares increasing from $10.08 on April 9 to trade at $14.17 on July 3.
The NextDC share price is down 0.43% to $13.98 today.
SiteMinder Ltd (ASX: SDR)
The Siteminder share price also ended FY25 in the red, down 13% to $4.43 on 30 June.
Siteminder's 52-week high in FY25 was $6.91 in October 2024.
Grimm also has a buy rating on Siteminder shares.
The analyst says:
This accommodation services provider has continued to retain customers and deliver revenue growth, highlighting the value of its software products through the macroeconomic cycle.
Fears of a cyclical downturn have seen SDR shares fall from $6.37 on February 25 to trade at $4.435 on July 3.
The stock has arguably been subjected to end of financial year tax loss selling, creating an attractive buying opportunity.
The ASX 200 tech share is up 0.11% to $4.51 at the time of writing.
