2 of the best ASX artificial intelligence shares to buy

Artificial intelligence (AI) is creating opportunities well beyond companies like OpenAI that are developing generative AI models.

These are two ASX shares I would buy for AI exposure.

NEXTDC Ltd (ASX: NXT)

NEXTDC is one of my preferred ways to gain exposure to the physical infrastructure needed for AI.

The company operates data centres across Australia and other parts of the Asia-Pacific region.

AI workloads require enormous amounts of computing power, but that also means they require electricity, cooling, and specialist facilities capable of housing increasingly powerful hardware.

That is where NEXTDC comes in. What I like is that the company is not simply building data centres and hoping customers eventually arrive.

The ASX artificial intelligence share has accumulated a substantial amount of contracted capacity and a large forward order book. To me, that provides evidence that customers are already committing to future infrastructure.

If AI continues driving demand for computing capacity, NEXTDC could have years of expansion ahead as it develops new facilities and brings contracted capacity online.

The main risk is the amount of capital required to fund that growth. Data centres are expensive to build, and projects can face delays around power, construction, and approvals.

Even so, I think NEXTDC is well placed to benefit as demand for digital infrastructure keeps growing.

Megaport Ltd (ASX: MP1)

Megaport is an ASX tech share that provides investors with a different type of artificial intelligence exposure.

Rather than owning the data centres themselves, Megaport helps businesses connect data centres, cloud providers, and other digital infrastructure through its software-defined network.

I think that becomes increasingly valuable as computing becomes more complex.

A business running AI workloads may use infrastructure across several locations and cloud platforms rather than keeping everything in one place. Those systems need fast and flexible connections between them.

Megaport allows customers to set up that connectivity without relying entirely on traditional physical network arrangements.

That gives the company an opportunity to benefit as businesses use more cloud infrastructure and move larger amounts of data between different locations.

I also like that Megaport can expand without needing to fund the same level of physical infrastructure as a data centre operator.

There will still be competition, and the company needs to keep growing customers and usage.

But I think greater demand for cloud and AI connectivity gives Megaport an attractive long-term opportunity.

Foolish takeaway

I think NEXTDC and Megaport offer two different ways to invest in the infrastructure supporting AI.

NEXTDC provides the physical space, power, and cooling needed for computing capacity, while Megaport helps connect that infrastructure together.

For me, both ASX shares could have plenty of growth ahead if artificial intelligence investment continues expanding over the coming years.

The post 2 of the best ASX artificial intelligence shares to buy appeared first on The Motley Fool Australia.

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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 Megaport. 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 Scott Phillips.