Rio Tinto Ltd (ASX: RIO) shares have finally taken a breather.

The Rio Tinto share price has slipped around 8% over the past month, but that barely dents what has been an outstanding run. The mining heavyweight is still up an impressive 67% over the past 12 months, making it one of the best-performing ASX blue chips and even outpacing rival BHP Group Ltd (ASX: BHP).

So, after such a stellar rally, is there still a case for buying Rio Tinto shares?

Here are three reasons long-term investors may think so.

World-class iron ore assets

Rio Tinto’s biggest strength remains its iron ore business.

The company owns some of the world’s highest-quality, lowest-cost mines in the Pilbara, giving it a significant competitive advantage over many global rivals.

Because these operations sit so low on the cost curve, Rio Tinto can continue generating healthy profits even when iron ore prices soften. When prices rise, those same assets become cash-generating machines.

Its scale, infrastructure, and decades of operational expertise create barriers to entry that few competitors can match.

Reliable cash flow and dividends

Rio Tinto shares have long been one of the ASX’s premier dividend stocks.

While dividends naturally fluctuate with commodity prices, the company has consistently returned a substantial share of its profits to shareholders through dividends and, at times, share buybacks.

That shareholder-friendly approach is supported by a strong balance sheet, disciplined capital allocation, and exceptional cash generation.

For income investors, few miners have Rio’s track record of rewarding shareholders throughout the commodity cycle.

Growing exposure to future-facing commodities

Although iron ore remains Rio Tinto’s biggest earnings driver, the company is steadily broadening its portfolio. It is investing heavily in commodities expected to benefit from the global energy transition, including copper, lithium, and aluminium.

Copper is essential for electrification, renewable energy, and electric vehicles. Lithium demand continues to grow as battery production expands, while aluminium is increasingly used in lightweight transport and clean-energy infrastructure.

These investments give Rio Tinto shares exposure to long-term structural growth trends while its iron ore business continues funding expansion.

The key risk

Investing in Rio Tinto shares is not without risk. Rio Tinto still derives the majority of its earnings from iron ore, making the company highly sensitive to Chinese steel demand and fluctuations in iron ore prices.

If either weakens significantly, profits and dividend payments could come under pressure.

Foolish takeaway

Rio Tinto combines three qualities that long-term investors often seek: world-class mining assets, exceptional cash generation, and growing exposure to commodities that should remain in demand for decades.

While its fortunes will continue to rise and fall with the iron ore cycle, Rio’s diversified growth strategy and history of rewarding shareholders make a compelling case that the recent pullback could present another opportunity for patient investors.

The post Why Rio Tinto shares could be a smart long-term buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Ready to make some new additions to your investment portfolio? Then it could be worth considering the three ASX 200 shares in this article.

That’s because they have just been named as buys by experts according to The Bull. Here’s what they are saying about them:

Aristocrat Leisure Ltd (ASX: ALL)

The team at Medallion Financial Group is positive on this gaming technology company and has named it as an ASX 200 share to buy.

It likes the company due to its belief that it offers quality, growth, and attractive returns. It explains:

Aristocrat is a gaming content creation company. It holds market leading positions across land based gaming and digital social casino. The company recently announced a substantial and extended on-market share buy-back, signalling management’s confidence in the underlying business and providing a meaningful tailwind to earnings per share growth. Combined with strong cash generation, disciplined capital allocation and ongoing digital expansion opportunities, we believe Aristocrat offers quality, growth and appealing shareholder returns.

Goodman Group (ASX: GMG)

Another ASX 200 share that Medallion Financial Group rates as a buy is Goodman Group.

It believes the market is undervaluing the industrial property giant’s long-term growth potential, which is being underpinned by its data centre strategy. Medallion said:

GMG is a global industrial property group and data centre developer. Recent acquisitions and development activity have further strengthened the group’s exposure to data centres, artificial intelligence infrastructure and cloud computing demand. Work in progress of $14.5 billion at March 31, 2026 is expected to increase to $18 billion by the end of June. We believe the market is still undervaluing the long term earnings potential of Goodman’s data centre strategy.

Woodside Energy Group Ltd (ASX: WDS)

A third ASX 200 share that has been given the thumbs up is energy giant Woodside.

Fairmont Equities believes that Woodside’s shares have been oversold recently, creating a buying opportunity for investors. It explains:

We were a buyer of this major energy company prior to the war in Iran. In our view, the recent share price fall presents another buying opportunity. Moving forward, we’re expecting tighter crude oil supplies to lead to higher prices. Recent weaker crude oil prices is a response to governments releasing oil from strategic reserves, but they now need to be replenished. As the biggest oil stock on the ASX, Woodside Energy will attract investors when they conclude crude oil prices will be higher for longer.

The post Experts name 3 top ASX 200 shares to buy this week appeared first on The Motley Fool Australia.

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

A bad week on the Nasdaq tends to ripple straight through to ASX tech stocks, but not always in the way the headlines suggest.

The Nasdaq Composite Index (NASDAQ: .IXIC) posted its fifth consecutive losing session on Friday, dropping 0.24% to close at 25,297.62. Investors rotated out of major technology stocks and into more defensive areas of the market.

For the week, the Nasdaq fell 4.6%, its worst weekly performance in months, even as the Dow Jones Industrial Average Index (DJX: .DJI) actually rose 0.6% over the same period.

That rotation also affected ASX stocks, with the S&P/ASX 200 Index (ASX: XJO) falling 0.42%, led by many well-known tech stocks.

What drove the selloff, and what this means for ASX tech stocks

A lot of this sell-off can be attributed to renewed caution about the entire AI infrastructure trade.

Chip stocks were weaker after reports that OpenAI is considering delaying its IPO to next year. This is due specifically to SpaceX’s poor performance following its own debut and broader volatility in AI-related shares.

That report raised concerns about the sustainability of AI infrastructure spending given the delay in funding from the capital markets.

This is a challenge to the thesis behind buying ASX data centre and AI infrastructure stocks this year: that mega-cap AI IPOs would keep validating and funding the buildout.

When the US sneezes, Australia catches a cold. These three ASX tech stocks all reacted in different ways to last week’s underperformance.

What it means for NextDC Ltd (ASX: NXT)

NextDC is the ASX tech stock most directly exposed to this specific news. This is because OpenAI is the foundational customer for its Western Sydney AI data centre campus.

A delayed OpenAI IPO does not cancel that contracted relationship, but it does remove, at least for now, one of the strongest near-term catalysts that has supported sentiment around NextDC’s AI infrastructure thesis.

The contracted capacity and capital expenditure NextDC has already committed to remain unchanged regardless of OpenAI’s listing timeline.

But investors should not assume the AI IPO wave will keep providing an automatic tailwind for the stock in the way it has over recent months.

What it means for WiseTech Global Ltd (ASX: WTC)

WiseTech is sensitive to broad technology sector rotation given its premium valuation and exposure to global growth-stock sentiment. But this week the company also gave the market its own, separate reason to worry.

Reports emerged that the Australian Federal Police is investigating founder Richard White over serious allegations involving a former employee.

This sent WiseTech shares down almost 13% in a single session, on top of an already difficult year for the stock.

Until there is clarity on both the investigation and the board’s response, the stock’s near-term moves are likely to reflect that overhang as much as any broader rotation out of growth names.

What it means for Xero Ltd (ASX: XRO)

Xero sits closer to the US SaaS peer group than either WiseTech or NextDC. This makes it the most directly comparable of the three to whatever is driving Nasdaq software valuations specifically.

When US growth software names sell off on rate or rotation concerns, Xero’s share price  tends to move in parallel. This is despite the fact that the company’s own performance has remained solid through the volatility.

Xero delivered operating revenue growth of 31% to NZ$2.8 billion in its most recent full-year result. The US stood out as its fastest-growing market on the back of its Melio bill pay integration.

This gives the Xero shares a company-specific growth story that has little to do with whatever is driving sentiment on the Nasdaq this week.

Foolish takeaway for ASX tech stocks

The Nasdaq’s worst week in months was driven by a rotation away from growth and AI-adjacent names, sharpened by a specific report that OpenAI may delay its IPO because of SpaceX’s shaky debut.

That detail matters more for NextDC than for WiseTech or Xero, given its direct contractual link to OpenAI.

For all three, however, the broader lesson is the same: ASX tech stocks are not immune to what is happening across the pond in the US.

The post The Nasdaq just had its worst week in months. Here’s what that means for ASX tech stocks appeared first on The Motley Fool Australia.

More reading

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• WiseTech shares are all over the place. Here’s why
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• 4 ASX 200 shares I’d buy before the end of June
• Top brokers name 3 ASX shares to buy next week

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