Appen Ltd (ASX:APX) and this ASX tech share could be top options for investors next week. Here’s what you need to know…
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If you’re looking to take advantage of recent weakness in the tech sector, then the ASX tech shares listed below might be worth a look.
Here’s why these tech shares have buy ratings on them:
Altium Limited (ASX: ALU)
Altium is the leading electronic design software provider behind the Altium Designer and cloud-based Altium 365 platforms. This software is used to design the printed circuit boards (PCBs) that are found in almost all electronic devices.
Thanks to the Internet of Things (IoT) and Artificial Intelligence (AI) booms, demand for its software is predicted to grow strongly over the next decade. This should be supported by its other growing businesses. These include the Octopart search engine for electronic and industrial parts and the NEXUS workflow solution.
Analysts at Morgan Stanley are positive on the company. They currently have an overweight rating and $40.00 price target on Altium’s shares. This compares to the latest Altium share price of $35.72. The broker believes the company is in a strong position for growth once COVID headwinds ease.
Another ASX tech share which has been tipped for big things in the future is Appen. It is the global leader in the development of high-quality, human-annotated training data for machine learning and AI. Through its massive team of 1 million+ crowd-sourced workers across the globe, it helps to improve the artificial intelligence models of blue chips, tech giants, and government agencies.
Pleasingly, given the growing importance of AI and machine learning, demand for Appen’s services has been increasing strongly in recent years. The good news is that experts are tipping these markets to continue their meteoric growth for some time to come. This bodes well for Appen in the future.
Analysts at Macquarie currently have an outperform rating and $43.00 price target on the company’s shares. This compares to the current Appen share price of $29.74. The broker expects the company to benefit from an increase in spending on AI.
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*Returns as of June 30th
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.