Megaport Ltd (ASX: MP1) shares have had an extraordinary run in 2026.

The stock is trading around $21.12 on Wednesday, up over 75% for the year after investors responded enthusiastically to a string of major artificial intelligence (AI) infrastructure deals.

Does this mean Megaport shares are one of the ASX stocks to own for the AI boom?

Megaport has become a different business

For years, Megaport was primarily a connectivity story. Its network enables businesses to connect quickly across data centres, cloud providers, and other digital infrastructure worldwide.

I still think the business has a strong future as companies use more cloud services and move greater amounts of data between different locations.

But the acquisition of Latitude.sh has added a completely new dimension.

Latitude.sh gives Megaport direct exposure to AI compute through GPU and CPU infrastructure. Instead of simply connecting customers to the infrastructure they need, Megaport can now provide some of that computing capacity itself.

That puts the company closer to the enormous spending currently taking place around artificial intelligence.

And early demand suggests the opportunity could be substantial.

Megaport recently announced three additional strategic AI infrastructure contracts worth approximately $979 million, taking the value of strategic contracts announced since April to around $2.3 billion. Once those contracts are fully deployed, the company expects group annual recurring revenue to reach roughly $1.1 billion.

For me, that is when the AI story becomes much easier to take seriously.

Why AI inference could be important

Much of the attention around AI has focused on the enormous data centres required to train increasingly powerful models.

But models also require computing power every time somebody actually uses them. This is known as inference, and demand should increase as AI becomes embedded in more software, businesses, and everyday applications.

Bell Potter believes Megaport is particularly well placed here.

The broker recently described the company as offering “one of the few direct exposures on the ASX to a neocloud provider”, with particular exposure to growing inference demand.

Megaport is building a distributed compute network rather than trying to construct enormous AI data centres itself. That potentially gives it a more flexible way to participate as demand develops across different markets.

Its relationship with NVIDIA is another positive. NVIDIA recently named Megaport among the Australian partners it is working with to expand AI infrastructure, which Bell Potter believes could improve Megaport’s access to GPUs and help it win AI-native customers.

Bell Potter sees much more growth ahead

The scale of the earnings growth Bell Potter expects is striking.

The broker forecasts underlying EBITDA increasing from $77 million in FY26 to $329 million in FY27 and $726 million in FY28, with much of that growth supported by strategic contracts already being rolled out.

Bell Potter has consequently initiated coverage with a buy rating and a $27 price target.

From the current Megaport share price of around $21.12, that would represent potential upside of roughly 28%.

I would not buy purely because a broker has put a higher price target on the stock. But I think those forecasts help illustrate just how dramatically Megaport’s earnings profile could change if it successfully delivers the business already contracted.

What could go wrong?

There is plenty of execution required. Megaport has signed enormous contracts, but it now needs to deploy the infrastructure, secure the necessary hardware, and turn those agreements into recurring revenue and profits.

AI infrastructure is also evolving extremely quickly. Competition could increase, technology could change, and today’s exceptionally strong demand may not develop exactly as investors currently expect.

After the share price rally this year, expectations are also much higher. Any delays or weaker contract momentum could produce some sharp volatility.

Foolish takeaway

I think Megaport shares are among the most compelling ways to gain direct exposure to AI infrastructure on the ASX.

I would be comfortable buying shares around $21.12, provided I was prepared for a bumpy ride as this much larger business takes shape.

The post Are Megaport shares a must-buy for the AI boom? 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 and Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Capricorn Metals Ltd (ASX: CMM) recently reported first-quarter gold production results, which piqued the interest of the analyst team at Barrenjoey.

The Barrenjoey team has a bullish price target on Capricorn shares, after the company reported better-than-expected gold production for the quarter.

I’ll get to the specifics of that price target shortly, but first, let’s look at what the company reported.

Ramping up gold production

Capricorn said it had produced 31,218 ounces of gold from its Karlawinda gold project, up from 30,437 ounces in the previous quarter, while construction of the Karlawinda expansion project was successfully completed on schedule and within budget.

The company said it was now on track to produce 137,000 to 147,000 ounces of gold at an all-in sustaining cost of $1,900 to $2,100 per ounce in FY27.

Capricorn’s cash and gold on hand at the end of the September quarter was $535 million, up from $507 million at the end of the June quarter.

Development activities at the company’s Mt Gibson gold project also progressed, with detailed engineering complete and all major contracts finalised.

Analysts like the growth story

Barrenjoey said in their research report that the solid results during the quarter were an example of the company’s ability to execute well.

They added that Capricorn had bigger things planned:

CMM has made clearer its growth agenda unveiling a new business plan, which includes a production target of ~410koz in FY31, a large uplift on the 124koz delivered in FY26 and a prior business plan target of ~300kozpa. This growth is to come from an expansion of Karlawinda (to 150kozpa) and delivery of the Mt Gibson project (now ~260kozpa; prior business plan was ~150kozpa). This growth is projected to be high margin, with the prefeasibility study outlining all-in sustaining costs of less than $2000 per ounce.

Barrenjoey said the growth projects would be funded through cash.

They added:

We do not think this growth agenda is fully priced in, with the market at face value pricing in a discount for execution risk. We have high regard for the ability of management to execute, which has again been demonstrated this quarter, with the Karlawinda mill expansion commissioned on schedule and ramping up well. We think CMM looks attractive, with the share price a ~30% discount to our net present value.

Barrenjoey said Capricorn was trading at a higher multiple than many of its peers, but they believed this was justified by its robust growth pipeline.

The broker has a price target of $22.50 for Capricorn shares, compared with the current price of $14.85.

This would constitute a 51.5% increase if achieved. The company is valued at $6.58 billion.

The post This up-and-coming ASX gold producer could rise more than 50%: Broker appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

AGL Energy Ltd (ASX: AGL), Cochlear Ltd (ASX: COH), and WiseTech Global Ltd (ASX: WTC) shares have all slumped lower over the past month, likely due to macroeconomic headwinds, weaker energy prices, and shifts in investor sentiment.

Here’s the latest out of the ASX 200 shares, and what brokers expect next.

Brokers rate AGL shares as a SELL

AGL shares are down around 0.1% to $8.31 at the time of writing on Wednesday morning. The ASX energy shares are now down around 4% over the past month and 11% lower year to date.

Over the past month, AGL shares have come under pressure from softer wholesale electricity prices and government regulation changes have also added a layer of uncertainty.

Mild weather, higher renewable energy generation, and battery storage growth are pushing wholesale electricity prices lower and reducing high-price spikes.

At the same time, the government is trying to push for lower costs by introducing price caps and limiting price increases. This could put pressure on AGL’s margins going forward.

Brokers are mostly bearish on the outlook for the power company going forward. Market Index data shows the majority of brokers have a sell rating on AGL shares, and the $9.70 average target price implies a downside of around 16%, at the time of writing.

Brokers rate Cochlear shares as a HOLD

Cochlear shares have also slipped further into the red on Wednesday morning. At the time of writing, the shares are down around 0.2% to $129.99 each. The shares are down 7% over the past month and 50% lower year to date.

The shares fell around 14% in late September after the company announced to the ASX that it had received a class action claim filed against it in the Supreme Court of Victoria. 

The claim is on behalf of persons who acquired interests in Cochlear shares between 15 August 2025 and 21 April 2026 (inclusive). It relates to Cochlear’s forecast of underlying net profit for FY26. 

Cochlear said it denies the allegations set out in the claim and will be defending the proceedings. But the news rattled investor confidence and the shares have continued falling ever since.

The update comes off the back of ongoing operational headwinds. Looking ahead to FY27, the ASX healthcare company expects low-single-digit constant currency revenue growth and an underlying net profit between $330 million and $350 million. 

According to Market Index data, the majority of brokers have a hold rating on Cochlear shares. The $126.24 average target price implies a downside of around 3% at the time of writing.

Brokers rate WiseTech shares as a BUY

WiseTech shares are also down on Wednesday morning. At the time of writing, the shares have fallen around 0.5% to $31.79 each. Over the past month WiseTech shares have tumbled 12%, and they’re also down 54% for the year-to-date.

There hasn’t been any price sensitive news out of the company over the past month to explain the latest selloff. 

But it’s been well-documented that the business has been smashed by a combination of headwinds over the past few months. Including an overall investor rotation away from tech shares, a series of regulatory investigations, and governance concerns. 

The company’s FY26 results announcement in August didn’t help confidence either. On the surface the earnings result was positive, and earnings were in line with analyst expectations. But its EBITDA figures came in short of market forecasts and investors rushed to sell up.

But it looks like the experts are still confident that WiseTech shares can bounce back over the next year. Market Index data shows all brokers have a strong buy rating on the shares. The $58.07 target price implies an upside of around 82% at the time of writing.

The post AGL, Cochlear, WiseTech shares: Buy, hold, sell appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 Cochlear and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.