Which top ASX tech shares would I buy for FY27?

The best technology businesses are not just attached to popular themes. They are building products customers rely on.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I'm still positive on ASX tech shares over the long term.

The sector can be volatile, and expectations can shift quickly. But I think the best technology businesses are still finding ways to become more important to their customers.

With FY27 approaching, I would be looking for companies that are not just attached to a popular theme but are building products and infrastructure that customers actually rely on. Here are three I would buy.

A smiling woman points with her pen at a computer where a colleague sits as though they are collaborating on a project.

Image source: Getty Images

WiseTech Global Ltd (ASX: WTC)

WiseTech is the first ASX tech share I would buy.

The company is best known for CargoWise, its software platform for the global logistics industry.

I think the interesting thing about WiseTech is that logistics is full of friction. Freight forwarders, customs brokers, carriers, warehouses, importers, exporters, and regulators all need information to move accurately across borders, systems, documents, and time zones.

That creates a natural role for specialist software. CargoWise helps customers manage more of that workflow in one place. The deeper it becomes inside a logistics business, the harder it can be to replace. That embedded position is what I like most.

I also think logistics software could become more valuable as global trade becomes more demanding. Customers want better visibility, faster document handling, fewer manual errors, and more automation. Artificial intelligence (AI) could help with parts of that over time, but the platform still needs deep industry knowledge, data, and customer workflows behind it.

WiseTech is not without risk. Expectations can be high, acquisitions need to be integrated well, and investors will keep a close eye on management execution. But I think the company has built a rare global software position from Australia.

Netwealth Group Ltd (ASX: NWL)

Wealth management platform provider Netwealth is another ASX tech share I would buy for FY27.

A good investment platform can sit at the centre of an advice business. It can help advisers manage portfolios, reporting, administration, managed accounts, tax information, and client workflows.

That may sound behind-the-scenes, but I think it is extremely important.

Advisers do not want clunky systems when client needs are becoming more detailed. Retirees may need income strategies, younger investors may want transparency, and families may have several layers of financial goals. Platforms that make advice practices more efficient can become very valuable.

Netwealth has built a strong position in that market. I like its brand, its independent platform model, and its ability to benefit as more money moves through modern wealth systems.

It may have been growing strongly over the last decade, but I think Netwealth still has a long runway if it keeps winning adviser support and improving its technology.

NextDC Ltd (ASX: NXT)

NextDC gives investors a very different type of technology exposure.

Rather than selling software to customers, it provides the physical data centre infrastructure needed for the digital economy to function.

That includes cloud computing, AI, cybersecurity, streaming, enterprise software, data storage, and online services. All of those activities need secure, reliable, power-hungry facilities behind them.

I think this is one of the most important technology themes on the ASX.

The digital world can look weightless from the outside, but the infrastructure behind it is very real. Companies need capacity, power, cooling, connectivity, security, and locations that support large-scale computing.

NextDC is positioned in that infrastructure layer. And if the demand outlook continues to strengthen, I think the company could have many years of growth ahead.

Foolish Takeaway

The ASX tech shares I like most are not just selling into a fashionable theme. They are becoming part of the systems, workflows, and infrastructure that customers need to operate.

That is what makes this group appealing to me. Each business has a different risk profile, and FY27 could still bring plenty of volatility. But I think specialist software, platform technology, and digital infrastructure remain powerful areas of long-term growth.

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended Netwealth Group and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Happy man and woman looking at the share price on a tablet.
Technology Shares

Elsight delivers solid cash flow in June quarter

Elsight reported customer receipts of US$5.4 million and ended June with a strong cash balance of US$63.3 million.

Read more »

A woman with her hands over her face splits her fingers over one eye so she can peep through it.
Technology Shares

Here's what brokers tip for WiseTech shares over the next 12 months

WiseTech shares are now down 72% from 12 months ago.

Read more »

A couple sit in their home looking at a phone screen as if discussing a financial matter.
Technology Shares

3 reasons to buy DroneShield shares now

I think this fallen ASX defence stock now has a more interesting risk/reward balance.

Read more »

A businessman points to an arrow going up on a graph, indicating a share price rise for an ASX company.
Technology Shares

Why this undervalued ASX All Ords tech stock is tipped for 'significant growth'

A leading fund manager believes the market is undervaluing the growth potential of this ASX tech stock.

Read more »

a group of three cybersecurity experts stand with satisfied looks on their faces with one holding a laptop computer while he group stands in front of a large bank of computers and electronic equipment.
Technology Shares

NEXTDC share price on watch as contracted utilisation rises and forward order book grows

The data centre operator has announced another increase in its contracted utilisation and forward order book.

Read more »

Workers at the port joyfully jump high in the air with shipping containers in the background.
Technology Shares

When will WiseTech shares bottom out?

A 70% crash. Here is what could mark the bottom for WiseTech shares.

Read more »

A female athlete in green spandex leaps from one cliff edge to another.
Broker Notes

Up 149% in a year, why this surging ASX 300 tech stock is still a good buy today

One expert weighs in.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Technology Shares

Why WiseTech shares could rocket 100%

Bell Potter thinks now could be a good time to buy this beaten down stock.

Read more »