The Best ASX Tech Stocks
to buy Now In
March 2024

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

The Best ASX Tech Stocks
to buy Now In
March 2024

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

Building a Solid Investment Strategy

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Assess the financial health of the firm before investing.
Look at key financial indicators such as cash flow, earnings, debt levels, and revenue growth. A company with strong financials is typically a safer investment.

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Evaluate how the company makes money, its key revenue drivers, and its growth potential. Companies with a sustainable and scalable business model, such as Objective Corporation, Hansen Technologies, and NEXTDC Limited, could make for a good investment.

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Consider diversifying your investments across different sectors and companies to mitigate risk. Don't put all your eggs in one basket; even within the technology sector, it can be beneficial to invest in companies operating in different areas.

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Consider the trends of the Markets and the Dynamics of the sectors the company runs in. Stay updated with trends in the technology sector and broader market dynamics. This can help identify potential opportunities and risks.

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Monitor the price of the share that you are looking to buy.
Regularly monitor the share price and be aware of the factors that can influence it. For instance, changes in interest rates, company news, and market sentiment can all affect a stock's price.

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Navigating the Digital Terrain: The Top 3 ASX Tech Stocks to Invest In

Navigating the best ASX tech stocks can be complex, given the diversity of companies operating in various sub-sectors such as software, IT services, device and hardware manufacturers, data center operators, and semiconductor companies among others.

Moreover, with the varying market caps and the volatility associated with tech stocks, investing in this sector can come with a high risk. However, there is potential for impressive returns. But here, we outline our top three Australian tech stocks. This trio of stocks all demonstrate a strong cash flow, legitimate business models, as well as high exposure to significant trends, and the ability to capture the upside.

Factors to Consider When Investing in ASX Tech Stocks

When investing in ASX tech stocks, there are numerous factors to consider. The nature of the technology sector means that there is often a higher degree of risk involved compared to other sectors.

Central banks, interest rates, and global market trends can have a significant impact on tech stocks. It is also essential to look at each company's financials, market share, cash flow, and any recent capital raise activities. In-depth research and understanding of the tech industry will enable you to make informed decisions about investing in these stocks. Consider the company's growth potential, competitive position within the technology sector, management team, and financial health.

Market Trends and the Future Outlook

Navigating the best ASX tech stocks can be complex, given the diversity of companies operating in various sub-sectors such as software, IT services, device and hardware manufacturers, data center operators, and semiconductor companies among others.
The ASX technology sector has seen remarkable growth in recent years, fuelled by advancements in information technology, cloud computing, networks and software solutions development.

There has been a steady upward trend in ASX tech stocks, with the index outperforming many others in the Australian market. Case in point: The ASX 200 has gained 15% in 5 years but the ASX 200 Information Technology Index is up 55%. As we move towards a more digitally-integrated world, the technology service sector's significance is set to amplify. Factors like the global shift towards remote working, the rise of data centers, and increased reliance on cloud-based internet services have spurred demand for technology solutions.

Companies providing these services, such technology companies such as Objective Corporation and Hansen Technologies, are poised for continued growth. However, the technology sector is also synonymous with volatility. Changes in interest rates influenced by central banks, global political events, and shifts in consumer preferences can swiftly alter the sector's landscape. For instance, increased interest rates can put pressure on tech companies with high debt levels and non-resilient customer bases, potentially leading to lower share prices. Given these factors, it's crucial for investors to adopt a balanced approach, factoring in both the high growth potential and the associated risks of investing in the technology sector.

Top 3 ASX Tech Stocks to buy

Atturra (ASX:ATA)

Atturra is an IT services provider that only listed on the ASX in late-2021. Unlike many other ASX companies that listed during the pandemic, it has had positive momentum in light of the demand for IT services and several earnings-accretive acquisitions. It grew its revenue from $64.8m to $178.3m from FY19 to FY23 representing 29% CAGR growth. Its FY23 profit came in at $10.6m, up 32% from the year before.

NextDC Ltd. (ASX: NXT)

NextDC is the ASX's biggest data centre stock. It has an unparalleled record of success in the last decade, growing its market cap from $80m to over $6bn! In FY23, it made $362.4m in revenue and $193.7m in EBITDA. Analysts expect the company to have $1.8bn in revenue and $1.2bn in EBITDA by FY32, both way higher than today. The company is expected to expand its data centres (including into international markets) all because of the need for data centres as our reliance on the Cloud grows.

ReadyTech (ASX:RDY)

ReadyTech (ASX:RDY) offers a portfolio of SaaS solutions including local council software, payroll services and student management systems. We think the transition to the Cloud is still at an early stage and that ReadyTech is well positioned to capitalise. It is a strong investor in R&D and M&A activities to help it keep up with the competition. By FY26, it is targeting >$160m in revenues - over 50% higher than today.

Top 3 ASX Tech Stocks to buy

Atturra (ASX:ATA)

Atturra is an IT services provider that only listed on the ASX in late-2021. Unlike many other ASX companies that listed during the pandemic, it has had positive momentum in light of the demand for IT services and several earnings-accretive acquisitions. It grew its revenue from $64.8m to $178.3m from FY19 to FY23 representing 29% CAGR growth. Its FY23 profit came in at $10.6m, up 32% from the year before.

ReadyTech (ASX:RDY)

ReadyTech (ASX:RDY) offers a portfolio of SaaS solutions including local council software, payroll services and student management systems. We think the transition to the Cloud is still at an early stage and that ReadyTech is well positioned to capitalise. It is a strong investor in R&D and M&A activities to help it keep up with the competition. By FY26, it is targeting >$160m in revenues - over 50% higher than today.

NextDC Ltd. (ASX: NXT)

NextDC is the ASX's biggest data centre stock. It has an unparalleled record of success in the last decade, growing its market cap from $80m to over $6bn! In FY23, it made $362.4m in revenue and $193.7m in EBITDA. Analysts expect the company to have $1.8bn in revenue and $1.2bn in EBITDA by FY32, both way higher than today. The company is expected to expand its data centres (including into international markets) all because of the need for data centres as our reliance on the Cloud grows.

Frequently Asked Questions

The technology sector group is a category of stocks relating to the research, development, and distribution of technologically based goods and services. Examples of companies in this sector include software companies, IT services, device and hardware manufacturers, data center operators, and electronics and semiconductor companies among others. The technology sector is often considered the most innovative sector, driving progress and growth in the global economy.

Our Blogs On Tech Stocks

Weebit Nano

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

March 5, 2024

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

Xero

3 reasons why Xero (ASX:XRO) has significant upside right now

March 4, 2024

Xero (ASX:XRO) is one of the ASX’s best-performing tech stocks over the last decade, offering accounting software helping SMEs do…

NextDC

NEXTDC (ASX:NXT): A good FY25 growth opportunity on paper, but it comes at a cost

March 1, 2024

This week’s deep dive is on NEXTDC (ASX:NXT). It is the biggest data centre stock on the ASX and the…

ReadyTech

ReadyTech (ASX:RDY) has terrific prospects to fly on the wings of Digital Transformation

January 11, 2024

ReadyTech (ASX: RDY) is in our view one of the best tech stocks on the ASX. It has a track…

Aristocrat Leisure

Aristocrat Leisure (ASX:ALL) is one of ASX’s largest tech stocks that just happens to be in gaming

December 6, 2023

Why has Aristocrat Leisure (ASX:ALL) succeeded where so many other gambling stocks have struggled? This company is up nearly 30%…

buy nvidia shares in australia

Should you buy Nvidia shares in Australia?

November 28, 2023

Many investors are likely wondering if they should buy Nvidia shares in Australia? Others still might be wondering just who…