The Best ASX Tech Stocks
to buy Now In
june 2024

Check out our Industry Experts’ report and
analysis on the Best Tech Stocks right now on the ASX

The Best ASX Tech Stocks to buy Now In june 2024

Check out our Industry Experts’ report and analysis on the Best Tech Stocks right now on the ASX

What Are Tech Stocks?

Tech stocks encompass companies within the technology sector that design, develop, and sell technology products and services. These include software solutions, cloud computing platforms, data centres, and contributions to the communications sectors. Specifically, Australian tech stocks refer to technology companies listed on the ASX, part of a rapidly evolving landscape driven by information technology and innovation.

Why Invest In ASX Tech Stocks?

If you want to profit from the tech world's rapid growth, investing in ASX tech stocks is an excellent decision. This is an important way to diversify and strengthen your investment portfolio. Investments in ASX tech stocks allow investors to participate in the advancements of technology companies, including those in software, cloud computing, and data analytics, pivotal areas for the digital economy. Additionally, the strategic emphasis on information technology and innovation makes the Australian market an attractive landscape for technology investments.

Australian tech stocks not only present an opportunity for substantial profit but also contribute to the broader growth and competitiveness of Australia in the global technology arena. Investors are thus positioned to benefit from the sector's growth trends and the expansion of companies driving innovation and market share gains within the technology sector.

Get the Latest Stock Market Insights for Free with
Stocks Down Under & Pitt Street Research

Join our newsletter and receive exclusive insights, market trends, investment tips, and updates delivered directly to your inbox. Don't miss out – subscribe today and make informed investment decisions.

Types Of Tech Stocks ASX

Tech stocks in the Australian market can be categorized into various types, each offering unique growth prospects and innovation pathways. These include software solutions companies, like Xero (ASX:XRO) and WiseTech (ASX:WTC), that provide cloud-based services and software for different industries. Cloud computing firms, such as Megaport (ASX:MP1), offer network-as-a-service capabilities, enabling businesses to efficiently connect to cloud services.

Data centres, which are run by businesses like NextDC (ASX:NXT), are very important for cloud computing and storing data. Another group includes companies that work in the communications sector, such as Hansen Technologies, which gives energy and communications service providers important software. There are also new tech fields like cybersecurity, artificial intelligence (AI), and machine learning, and companies at the forefront of them such as Archer (ASX:AXE), BrainChip (ASX:BRN) and 4DS Memory (ASX:4DS) which are developing computing solutions

The diversity in Australian tech stocks enables investors to choose from a broad spectrum of technology companies, ranging from established leaders to high-growth emerging players, each contributing to the technology sector's expansive growth and innovation.

How To Choose Best-Performing Tech Stocks ASX?

Selecting the best-performing ASX tech stocks involves analysing several critical factors, including market cap, growth trends, profit margins, and sector prospects. Not just in respect of individual companies, but their competitors too. Investors should look for companies with strong financials, a solid market position, a sticky customer base, a superior product, and the right management team. The company should have solid financials - be profitable or have a clear path to profitability and be making progress towards it.

Additionally, the impact of interest rates and central banks policies on tech investments cannot be overstated, these factors influence investment returns - as we saw all too well during the Tech Wreck of 2022-23. Focusing on sectors with high growth potential, such as cloud computing, software as a service (SaaS), and data analytics, can also guide investors towards stocks with long-term value.

3 Best ASX Tech Stocks To Buy 2024


NextDC Ltd (ASX:NXT)

NextDC is the biggest data centre stock on the ASX and the second biggest company in the entire Oceania region after Equinix. It has had an unparalleled record of success in the last decade, growing its market cap from $80m to over $6bn!


Xero (ASX:XRO)

Xero offers software that helps SMEs do business. It has over 3 million subscribers, and primarily sells accounting software that helps businesses keep books, pay bills and send invoices. But it has gradually developed features useful beyond book-keeping..



ReadyTech (ASX:RDY)

ReadyTech is a provider of SaaS technologies in Australia to the education, government and corporate sectors. Its offerings include (but are not limited to) asset management, property, licensing and compliance, finance, HR and payroll, and customer management products.

3 Best ASX Tech Stocks To Buy 2024

Nextdc Ltd (ASX: NXT)

NextDC is the biggest data centre stock on the ASX and the second biggest company in the entire Oceania region after Equinix. It has had an unparalleled record of success in the last decade, growing its market cap from $80m to over $6bn!

It was founded in 2010 and expanded on (correct) anticipation that more data centres would be needed, above and beyond what consumer telcos could provide. Although they cost a lot of upfront capex, they can generate revenue very fast once complete.

Fast forward to today and NEXTDC made $362.4m in revenue and $193.7m in EBITDA, all from 17 data centres. Impressive considering it didn’t even have one data centre operational at its IPO.

For FY24, consensus estimates predict $418.2m in revenue (up 18%) and $214.3m in EBITDA (up 10%). Looking to FY25, analysts call for $486.6m in revenue (up 16%) and $267.4m in EBITDA (up 24%). Estimates for NEXTDC expand all the way to FY32 by which time the company is expected to have $1.8bn in revenue and $1.2bn in EBITDA, both way higher than today!

Xero (ASX: XRO)

Xero offers software that helps SMEs do business. It has over 3 million subscribers, and primarily sells accounting software that helps businesses keep books, pay bills and send invoices. But it has gradually developed features useful beyond book-keeping, such as storing files, converting currencies, keeping track of inventories and creating professional quotes.

Clearly, Xero is an essential service to its customers….it’s very hard to switch it off just to save a few bucks. And what incentive is there to switch to another solution like a MYOB? Very little. Whatever few bucks would be saved, would be lost in the long run. Xero’s tools are estimated to save its customers on average 5.5 hours of manual work per week. We guess that is why its churn is less than 1%.

In FY24 – the 12 months to March 31, 2024 – the company recorded:

  • NZ$1.7bn in revenue (up 22%),
  • 4.16m subscribers (up 11% and 419,000 from 12 months prior),
  • $39.29 in average revenue per user (up 14%)
  • An 88% gross margin
  • A $174.6m profit (compared to a $113m loss in the year before).

The company believes it can grow further. It is aiming to double its revenue to NZ$3bn by FY27 and has told investors that the TAM (Total Addressable Market) is NZ$100bn. This might even be an understatement because that is just the top 3 jobs its software is used for – Accounting, Payroll and Payments. Adjacent Tasks, including other tasks such as inventory, CRM and project management, could be another $39bn.

ReadyTech (ASX: RDY)

ReadyTech is a provider of SaaS technologies in Australia to the education, government and corporate sectors. Its offerings include (but are not limited to) asset management, property, licensing and compliance, finance, HR and payroll, and customer management products.

The company made $130.3m in revenue in FY23 and is aiming for $160m in FY25, a target initially set for FY26 but bought forward at its 1HY24 results. ReadyTech has advised shareholders to expect organic revenue growth for FY24 to be in the mid-teens and a 34-35% EBITDA margin.

Risks Of Investing In ASX Tech Stocks

Investing in tech stocks poses several risks, primarily due to the high risk and volatile nature of the information technology sector. First, rapid changes in technology and customer preferences can render existing products obsolete, impacting revenue and profitability. 

Secondly, tech stocks often trade at high multiples, making them susceptible to significant price corrections if growth expectations are not met. Cybersecurity threats and regulatory changes pose additional risks, particularly for companies involved in data management and internet services. 

Moreover, global competition, especially from businesses in other parts of the world, can affect market share and price targets. The acquisition strategies common in this sector also carry the risk of integration challenges, potentially diluting stock value.

Are ASX Tech Stocks A Good Investment?

ASX tech stocks represent a good investment for those seeking exposure to the information technology sector and its growth potential. Despite the high risk associated with technology investments, the Australian technology stocks have shown resilience and capacity for significant growth in recent years, driven by innovation, global expansion, and increasing internet and digital service usage. Although tech stocks endured a difficult couple of years in 2022 and 2023, we think falling interest rates and inflation will help many tech stocks in 2024.

The sector has benefited from trends in cloud computing, cybersecurity, and e-commerce, among others, attracting both domestic and international customers. However, potential investors should be aware of the volatility and specific challenges, including regulatory changes and competition.

With careful research, risk management practices, and a long-term perspective, investing in ASX tech stocks can be profitable, contributing to a diversified investment portfolio.

FAQs on Investing in Tech Stocks

Technology stocks are owned by companies that work in the field of information technology, mainly in the areas of software, electronics, and internet services. They are very important for getting businesses to try new things and follow trends.

Our Analysis On ASX Tech Stocks

buy Apple shares from Australia

Should I buy Apple shares from Australia? Can the US$3.3tn behemoth grow any further?

June 18, 2024

Investors asking themselves, ‘Should I buy Apple shares from Australia,’ are not just considering buying shares any company, but the…

AI

AI Wars: Which Tech Giant’s Artificial Intelligence is better?

June 17, 2024

Artificial Intelligence (AI) is no longer just a futuristic concept—it’s here, transforming our daily lives from the way we commute…

when will canva list

When will Canva list? Here’s why investors’ patience may pay off in the next 2 years

June 17, 2024

When will Canva list? This has been a hot question for several years now. The latest answer seems to be…

ASML Stock

ASML looks compelling in June 2024, but is it the right time to buy?

June 12, 2024

The tech sector is buzzing with excitement and ASML (NASDAQ: ASML) is one company that stands out in the sector.…

Weebit Nano

Weebit Nano (ASX:WBT): Here’s why it has done so well and why the next 2 years will be extremely exciting!

June 12, 2024

Our long-time followers would know we are big fans of Weebit Nano (ASX: WBT). This company has delivered stellar returns…

ASX Stocks to buy when interest rates fall

ASX Stocks to buy when interest rates fall: Here are our top 3 sectors

June 6, 2024

Many investors are asking what ASX Stocks to buy when interest rates fall. When exactly interest rates will fall is…