Data centre and cloud computing businesses have been taking off over the past year as the AI revolution takes hold.

There are several Australian businesses positioning themselves to benefit from AI growth, some of which have already enjoyed impressive share price gains.

The brokers at UBS have released reports this week on companies they like in the sector.

Let’s see what they’re saying.

Goodman Group (ASX: GMG)

This company last week reported an operating profit of $2.67 billion for FY26, up 15.7% on the previous year, and said it was targeting earnings growth of 9% in the current financial year.

The company said:

The result reflects continued demand for Goodman’s urban locations and the growing contribution from data centre developments, where secured power, scarce land and customer and investment partner engagement are supporting a significant development pipeline.

Chief Executive Officer Greg Goodman said the strong operating result positioned the company well as a global provider of digital infrastructure.

He added:

Goodman has been active in data centres since 2005 and over the past five years, we’ve deliberately deepened our exposure to the sector by securing the sites, power and capital needed in major metro markets. Demand is structural across both logistics and data centres. Automation and robotics continue to drive logistics requirements while scarcity of power and land remains the key constraint on AI and cloud growth supporting data centre demand. Hyperscaler capex expectations continue to rise, with many customers facing undersupply into 2027 and 2028.

UBS said demand remained “incredibly strong”, with the company having a “compelling” offering.

UBS has a buy rating on the stock and a price target of $33.66 compared to $27.43 currently.

Megaport Ltd (ASX: MP1)

This cloud computing company last week announced FY26 revenue of $312.2 million, up 37%, while EBITDA was up 24% to $77.1 million.

Megaport Chief Executive Officer Michael Reid said:

Our team delivered an exceptional result in FY26. The Network business produced its strongest commercial performance to date, Latitude.sh expanded rapidly following acquisition, and our combined capabilities secured major long-term customer contracts across Compute, Network, and Storage. We have materially increased the scale of the business, broadened the markets we can serve, and created a much larger opportunity. Now our job is to execute against it.

UBS said the net outcome of the results report was “firmly in the positive” and estimated EBITDA of $624 million for Megaport in FY28.

The broker has a price target of $26.40 on Megaport shares, up from $24.20, compared to the current share price of $18.19.

The post Two ASX data centre stocks rated a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Megaport. 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.

S&P/ASX 200 Index (ASX: XJO) shares are 0.3% higher at 9,086.1 points on Monday.

Let’s start the new week with some fresh ratings from the experts

CSL Ltd (ASX: CSL)

The CSL share price is $170.37, up 1.3% today and down 21% over 12 months. 

CSL shares soared 23% last week after the company released its FY26 results and provided a positive outlook.

The CSL share price has ripped 85% since the healthcare sector began its long-awaited rebound on 3 June.

Morgans has a buy rating on this ASX 200 healthcare giant.

Analyst Derek Jellinek said: 

The FY26 result was broadly in line with expectations, with revenue of US$15.8bn (+3% vs guidance) and underlying NPATA of US$3.1bn.

Importantly, underlying Ig demand remains strong, Seqirus delivered seasonal influenza growth despite lower US immunisation rates and transformation savings reached US$176m ahead of target, although Vifor continues to face challenges.

While FY27 targets flat top line growth, as Vifor remains a significant drag, the earnings trajectory is becoming increasingly skewed towards recovery, supported by stabilising plasma economics, cost-outs and improved commercial execution.

We make modest changes to FY27-28 estimates and increase our blended DCF, PE and EV/EBITDA-based target price to A$187.71 on a multiple roll forward.

BHP Group Ltd (ASX: BHP)

The BHP share price hit a new record high of $67.72, up 3.9%, in early trading on Monday.

BHP released its FY26 report last week, and following this, John Athanasiou from Red Leaf Securities gave the miner a hold rating.

Athanasiou said (courtesy The Bull):

The company posted attributable profit of $US9.8 billion in full year 2026, up 9 per cent on the prior corresponding period. Revenue of $US58.8 billion was up 15 per cent.

The company’s copper portfolio is positioned to benefit from electrification, renewable infrastructure, power grid investment and data centre growth.

However, BHP remains heavily exposed to iron ore, leaving earnings sensitive to Chinese demand and commodity price movements.

The quality of BHP’s asset base, balance sheet and diversified portfolio leaves existing shareholders with little reason to sell.

However, after a solid run, prospective investors may be better served waiting for a potentially more attractive entry point.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $33.60, down 0.7% today and down 12% over 12 months. 

Following Westpac’s 3Q FY26 update, Athanasiou put a sell rating on the ASX 200 bank share. 

He said: 

The bank remains well capitalised and continues to generate solid earnings, but the operating environment is becoming increasingly competitive.

Mortgage pricing is aggressive, deposit competition remains intense and the scope for sustained margin expansion appears limited.

Westpac’s dividend remains attractive, but investors should also consider opportunity cost.

We believe there are more compelling opportunities on the ASX, which offer stronger structural growth or more attractive valuations.

The post Buy, hold, sell: CSL, BHP, Westpac shares appeared first on The Motley Fool Australia.

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• How much must I invest in BHP shares to earn a $1,000 passive income in 2027?
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Motley Fool contributor Bronwyn Allen 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 CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I were starting out in the share market today, I would want businesses I could understand and feel comfortable holding for years.

I would also favour companies that already have strong positions but still have clear ways to grow.

For those reasons, these three would be high on my list.

Goodman Group (ASX: GMG)

Goodman develops and owns large-scale property used by some of the world’s biggest companies.

Its portfolio includes logistics facilities, warehouses, and data centres, with properties concentrated around major cities where land and access to power can be difficult to secure.

I think that makes Goodman a particularly interesting way for a beginner to gain exposure to some powerful long-term trends.

Online shopping and increasingly complex supply chains have created demand for well-located logistics space. At the same time, cloud computing and artificial intelligence are driving enormous investment in data centres.

Goodman’s advantage is that it already owns and controls property in locations where these facilities are needed.

It also has decades of experience developing major projects and works with large global customers that need substantial amounts of space.

For a beginner, I like that the basic investment idea is easy to follow. Businesses need somewhere to store goods and run computing infrastructure, and Goodman is focused on supplying that property in places where it can be difficult to build more.

I think that could keep creating opportunities for a long time.

ResMed Inc. (ASX: RMD)

ResMed is one of the world’s major providers of technology for treating sleep apnoea and other respiratory conditions.

Its devices help people breathe properly while they sleep.

But selling a sleep treatment machine is only the beginning. ResMed can generate recurring revenue by providing replacement products, while its digital technology helps patients and healthcare providers manage treatment.

There is also a large group of people around the world who have sleep apnoea but have either not been diagnosed or are not receiving treatment.

As awareness improves and more people seek help, ResMed has the opportunity to bring more patients into its ecosystem.

For someone new to investing, I think this is a relatively straightforward long-term story. ResMed provides products that address a genuine medical need, has spent decades developing expertise in the field, and can keep growing by helping more people receive treatment.

That is the type of business I would be comfortable learning to invest with.

Macquarie Group Ltd (ASX: MQG)

Macquarie is much more than an Australian bank.

It operates across asset management, commodities and financial markets, banking, advisory, and investing, with activities spread around the world.

I think that range is one of the reasons it could suit a beginner.

Macquarie has several ways to find opportunities as economic conditions change. Its asset management business can invest in areas such as infrastructure, energy, and real assets. Its commodities operations help businesses manage financial and physical risks, while its banking and advisory businesses provide further sources of earnings.

What interests me is the experience Macquarie has built in areas requiring large amounts of capital and specialist knowledge.

Infrastructure, renewable energy, digital networks, transport, and other major projects will continue requiring investment for decades. Macquarie has positioned itself to participate in many of those opportunities around the world.

The business can be more complicated than the other two, but I think the central idea remains simple. That is that Macquarie has built expertise in allocating capital and finding opportunities across markets.

I would be comfortable backing that capability over a long period.

Foolish takeaway

If I were a beginner, I would not feel any pressure to find the most exciting share on the market.

I would rather start with established businesses whose long-term opportunities I can understand, then give myself time to learn while those companies continue doing what they do well.

Goodman, ResMed, and Macquarie would give me that kind of starting point, which is why I would be happy to buy all three with the intention of holding for years.

The post 3 ASX shares I’d buy if I were a beginner today appeared first on The Motley Fool Australia.

More reading

• Two ASX data centre stocks rated a buy
• 2 ASX shares highly recommended to buy: Experts
• Could CSL shares really hit $200? Experts reveal their 12-month targets
• Top brokers name 3 ASX shares to buy next week
• 3 excellent ASX shares I would buy and hold for 10 years or more

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 Goodman Group, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.