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.

It has been another fairly quiet session for Bank of Queensland Ltd (ASX: BOQ) shares on Wednesday.

The bank’s share price is down 1.28% to $6.575 in midday trade, continuing its somewhat lacklustre performance over the past year.

Back on 9 June, BOQ shares fell to a 52-week low of $5.91. They’ve since recovered around 11%, although the stock remains well below its 52-week high of $7.48.

But with shares still well below their highs, are they worth buying today?

The dividend looks pretty attractive

One thing likely drawing interest from income investors is BOQ’s dividend yield.

The bank paid 55 cents per share in fully franked dividends over the past 12 months.

At today’s share price, that translates to a trailing yield of approximately 8.37%.

However, there’s something worth keeping in mind.

That figure includes the 15-cent special dividend paid in August. Excluding this one-off payment, the ordinary dividends total 40 cents, giving a yield closer to 6.1%.

Still, that’s a decent return for shareholders.

The bank also announced a $295 million capital return last month. This consists of the special dividend and an on-market share buyback of up to $196 million.

But what about the underlying business?

This is where I’d be paying closer attention.

BOQ’s half-year results showed cash earnings fell 4% to $176 million, while statutory net profit dropped 20% to $136 million.

Operating expenses also increased 6% to $553 million.

There were some positives, though.

Its net interest margin (NIM) improved to 1.67%, compared with 1.57% a year earlier, while commercial lending balances increased 16%. 

More recently, BOQ completed the migration of approximately 350,000 ME customers onto its digital banking platform.

However, the bank also flagged a $47 million pre-tax impairment charge relating to technology and other assets, which will affect its FY26 statutory results. 

Are BOQ shares good value?

Analysts appear fairly divided on where BOQ shares could be heading next.

TipRanks puts the average 12-month price target from 8 analysts at $6.20, suggesting around 5.7% downside from today’s price.

Morningstar, on the other hand, has a fair value estimate of $7.305, suggesting approximately 11% upside. However, it also rates its valuation as highly uncertain.

Personally, I can see the appeal of the dividend, but I’m not convinced BOQ is an obvious bargain at $6.58.

I’d like to see more improvement in earnings before considering buying shares.

BOQ is scheduled to release its FY26 results on 15 October, which should give us a better idea of how the turnaround is progressing.

The post Bank of Queensland shares hit a 52-week low in June. Are they cheap today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

The S&P/ASX 200 Index (ASX: XJO) has gained 24.3% since 22 September 2023, but Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) shares have left those gains wanting.

So, just how much would a $10,000 investment in both of the ASX 200 gold stocks three years ago be worth today?

Read on!

Buying $10,000 worth of Northern Star shares

On 22 September 2023, gold was trading for US$1,925 per ounce, according to data from Bloomberg.

Today, that same ounce is trading for US$4,360, which puts the yellow metal up 126.5%.

As for Northern Star, three years ago you could have bought the ASX 200 gold miner for $10.92 a share. Meaning you could have picked up 915 Northern Star shares for $10,000.

In intraday trade on Wednesday, shares are changing hands $22.84 each. So, those 915 shares would be worth $20,899 today.

But let’s not forget those Northern Star dividends.

If you’d owned the stock for the past three years you would have received (or shortly will) the past six dividend payouts, totalling $1.50 a share. The first three were unfranked while the most recent three were franked at 100%. Northern Star stock traded ex-dividend on 9 September. If you held the stock at market close on 8 September you can expect to get paid on 15 October.

Now, if we add those dividends back in to today’s share price, then the accumulated value of the Northern Star shares you bought in September 2023 is worth $24.34 today. And those 915 shares are worth an accumulated $22,271.

Or a gain of 122.7%.

Which brings us to…

Investing $10,000 in Evolution Mining shares

On 22 September 2023, Evolution Mining shares closed the day trading for $3.58.

Your $10,000 investment, then, would have netted you 2,793 shares in this ASX 200 gold stock.

At the time of writing today, those same shares are changing hands for $13.97 each, meaning you could sell the whole lot now for $39,018.

But again, let’s not forget those dividends.

Having bought the gold miner three years ago, you would have received (or shortly will) the past six fully franked Evolution Mining dividends, totalling 68 cents a share. Evolution Mining stock traded ex-dividend on 9 September. If you held the stock at market close on 8 September, you can expect to see that record high 21 cent per share passive income payout land in your bank account on 2 October.

If we add those dividends back in to today’s share price, then the accumulated value of the Evolution Mining shares purchased three years ago is worth $14.65 now. And those 2,793 shares are worth an accumulated $40,917.

That’s a gain of 309.2%, which sees Evolution Mining clearly beating out Northern Star shares as the better investment over the past three years.

The post $10,000 invested in Evolution Mining and Northern Star shares 3 years ago is now worth… appeared first on The Motley Fool Australia.

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• Newmont vs Northern Star: Which gold share is better for value and yield?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.