3 ASX shares that could be future blue chips

Every blue chip starts somewhere.

Before a company becomes a market heavyweight, it usually spends years building scale, proving its business model, and earning investor confidence.

Not every growth share will make that transition. But some ASX companies already have the ingredients: strong market positions, large addressable markets, and room to keep expanding.

Here are three ASX shares that could become much larger over time.

Hub24 Ltd (ASX: HUB)

Hub24 has become one of the clearest winners from the shift in wealth management technology.

The company operates an investment platform used by financial advisers and their clients. These platforms help manage portfolios, reporting, administration, and access to investment products.

The reason Hub24 stands out is that it is operating in a market that still has room to modernise. Advisers continue to move away from older platforms, and the growth of Australia’s superannuation and investment pool provides a strong backdrop.

It is already a high-quality business. If it keeps winning market share, Hub24 could become an even more important part of Australia’s wealth management infrastructure.

Life360 Inc (ASX: 360)

Life360 is an ASX share building a global consumer platform around safety and connection.

Its app helps families stay connected through location sharing, driving insights, emergency assistance, and related services. That gives the company a regular place in users’ daily lives, which is valuable for any subscription-based platform.

The next stage of the story is monetisation. Life360 already has a large user base. The opportunity is to increase the value of that base by converting more users to paid plans and adding services that make the platform harder to leave.

This gives the company more than one way to grow. It can add users, increase subscription penetration, lift revenue per user, grow its advertising revenue, and expand its product offering.

The business is still relatively young compared with established ASX blue chips. But if it continues scaling globally, Life360 could look very different in a decade.

Megaport Ltd (ASX: MP1)

Megaport is another ASX share with a much larger opportunity than its current size suggests.

The company provides on-demand network connectivity, allowing businesses to connect to cloud providers, data centres, and digital infrastructure more flexibly.

That role is becoming more important as companies use multiple cloud platforms and need faster, more adaptable infrastructure.

The opportunity has also widened following Megaport’s acquisition of Latitude.sh. This expands the company beyond connectivity and into compute infrastructure, giving it exposure to more of the digital infrastructure stack.

Cloud computing, artificial intelligence, and data-heavy applications all need fast, flexible infrastructure behind them. Megaport is trying to build a platform that sits closer to that demand.

If it gets that right, Megaport has the potential to become a much larger ASX technology business.

The post  3 ASX shares that could be future blue chips appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360 and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Life360, and Megaport. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.