Telix Pharmaceuticals Ltd (ASX: TLX) shares have been strong performers in 2026.

Since the start of the year, the radiopharmaceutical company’s shares have risen a sizeable 53%.

While this still leaves its shares well short of their 2025 highs, one leading broker is calling time on the rally.

What is the broker saying?

Bell Potter notes that it recently met with the company and spoke about the prospects of its Pixclara product, which is seeking FDA approval. It commented:

Following a tough year in CY25, Telix continues to control the controllable factors and is now on the cusp of a major step forward with the pending approval of Pixclara. We recently met with the company at Bioshares (Queenstown), coming away encouraged with the prospects for Pixclara’s approval based on the company’s extensive engagement with the FDA. 

Pixclara is included on the NCCN guidelines for disease management, virtually ensuring commercial success if approved. The resubmission of the NDA for Pixclara included extensive new data which the company expects will satisfy the FDA’s efficacy concerns.

The broker has also been looking at Telix’s half-year results and was pleased with what it delivered. And while it expects the launch of a competing product to impact fourth-quarter revenue, Bell Potter still believes that its guidance is achievable. It explains:

1H26 increased by 22% to $477m, dominated by US sales of PSMA imaging agents. FY26 revenue guidance range is unchanged at $950m – $970m with the company guiding to the upper end. We expect the launch of a competitor product (TruVu – Lantheus) will impact 4Q26 revenues, nevertheless, the top end of the guidance is realistic. We do not anticipate a change in guidance irrespective of 3Q26 revenues.

Telix shares downgraded 

Despite the positives, Bell Potter believes that Telix shares are now approaching fair value.

As a result, the broker has downgraded them from a buy rating to a hold rating with a steady price target of $19.00. This implies potential upside of approximately 9% for investors from current levels.

Commenting on its investment thesis, Bell Potter said:

The pivotal moment is in a few days time for Pixclara with this event alone to dominate short term share price performance. We expect approval but without great conviction. FY26 earnings adjustments are modest. We retain our PT $19.00 and downgrade to Hold following the recent share price increase.

The post Why were Telix shares just downgraded? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investing in AI stocks on the ASX is harder than it looks because our market lacks “no-brainer” stocks like Nvidia and Microsoft.

Our local Aussie index is dominated by banks, miners and supermarkets.

But that does not mean there are no opportunities. What it does mean is that we need to look at the plumbing and the applications driving AI rather than the AI chips themselves.

The Motley Fool has previously covered how to invest in artificial intelligence locally.

Here are three ASX companies I think give you strong exposure to the AI theme.

Why ASX AI stocks look different to Wall Street

Australia does not manufacture semiconductors.

What we do have is land, power and regulated demand for sovereign data storage, and that has turned the local artificial intelligence trade into an infrastructure trade first and a software trade second.

NextDC: the purest infrastructure play

NextDC Ltd (ASX: NXT) builds and operates the data centres that artificial intelligence workloads run inside.

The company’s scale is now hard to ignore.

In an April update, contracted utilisation reached 667MW as at 31 March 2026, a 60% increase, while the forward order book jumped 83% to 544MW.

Contracted earnings from existing agreements now exceed $1 billion.

Chief executive Craig Scroggie did not undersell the shift:

The scale of this increase in contracted utilisation and the resulting uplift in the Company’s pro forma Forward Order Book are unprecedented, underscoring the record levels of demand we continue to experience.

The catch is cost.

NextDC guided to FY26 capital expenditure of $2.7 billion to $3.0 billion with roughly $5 billion forecast for FY27, and it funded part of that through a $1.5 billion entitlement offer priced at $12.70 per share.

Investors are still debating whether the AI boom is only getting started for NextDC shares.

The company reports its FY26 result on 27 August.

Pro Medicus: one of the few profitable AI stocks

Pro Medicus Ltd (ASX: PME) sells medical imaging software to United States hospital networks.

Its FY26 result delivered revenue of $261.7 million, up 22.9%, while underlying net profit after tax rose 24.1% to $144.7 million.

The underlying earnings before interest and tax margin reached 74.9%.

Dividends climbed 25.5% to 69 cents per share fully franked, and the company signed 10 new contracts worth at least $407 million.

Chief executive Sam Hupert framed the AI opportunity in terms of access:

We are the gatekeeper for image-based AI to now 11% of the market in the U.S. and growing.

That gatekeeper position represents the premium the market pays for.

Shares jumped more than 10% on results day, although they remain down roughly 11% for the calendar year.

Macquarie Technology: the small-cap option

Macquarie Technology Group Ltd (ASX: MAQ) runs data centres, cloud and cybersecurity services for government and corporate customers.

The company is a fraction of NextDC’s size, with a market capitalisation of roughly $1.6 billion.

The company delivered its 22nd consecutive half of EBITDA growth in the first half of FY26, with EBITDA of $57.9 million and full-year guidance of $114 million to $117 million.

Its IC3 Super West facility in Sydney is the real prize.

Phase one delivers 6MW, with a pathway to 19MW and an option over a Sydney campus site above 150MW.

Macquarie Technology also reports on 27 August.

The risks with ASX AI stocks

None of these businesses is cheap.

Pro Medicus trades on a price-to-earnings ratio near 88, which leaves no margin at all for a missed contract or a slower implementation schedule.

NextDC has never reported a statutory profit, and its capital intensity means further raisings are possible.

Macquarie Technology is small, thinly traded and spending heavily ahead of revenue.

Buying AI stocks means accepting that the market has already priced in a great deal of future growth.

Foolish takeaway

I would not put an entire portfolio into this single theme.

But a modest allocation across infrastructure and applications gives you two very different ways to win, because the companies building the capacity and the companies monetising it rarely peak at the same moment.

NextDC and Macquarie Technology sell the shovels.

Pro Medicus sells the software that makes the data useful.

For investors who want exposure to AI stocks without leaving the ASX, that is where I would start.

The post Investing in AI stocks on the ASX? Here’s what you should buy appeared first on The Motley Fool Australia.

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• My top 5 ASX 200 shares to buy and hold
• Why I’d buy CSL, Cochlear, and Pro Medicus shares
• This ASX dividend share just blew me away
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• Healthcare results wrap: Are Cogstate and Pro Medicus shares a buy, hold or sell?

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 Microsoft and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Microsoft, Nvidia, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) shares have been in the spotlight this week after the mining giant released its FY 2026 results.

Are its shares a buy? Let’s see what analysts at Bell Potter are saying about the miner.

What is the broker saying?

Bell Potter notes that Fortescue released a mixed result this week, with revenue and EBITDA slightly ahead of expectations, but net profit and dividends falling short. It said:

FMG reported mixed FY26 results, with revenue and EBITDA slightly ahead of our forecasts and consensus but NPAT and dividend a miss. Key metrics included revenue of US$16,966m (vs BPe US$16,491m, up 9% YoY), underlying EBITDA of US$8,635m (vs BPe US$8,382m, up 9% YoY) and underlying NPAT of US$3,458m (vs BPe US$3,723m, up 3% YoY). Statutory NPAT was impacted by an impairment of US$750m (Iron Bridge) and a US$104m (Yindjibarndi compensation) for US$598m post tax cost and statutory NPAT of US$2,870m, down 15% YoY.

Speaking about its dividend and outlook, Bell Potter adds:

FMG’s declared a final dividend of A46cps (vs A60cps YoY) for total FY26 dividends of A108cps at a 6.0% fully franked yield, a key support for the FMG share price. This was lower (A110cps YoY) despite higher production and a higher iron ore price. FY27 guidance was reiterated, for shipments of 197-207Mt at C1 cost US$20.50- US$21.75/wmt, implying +13% YoY cost inflation and that margins and earnings will remain under pressure. 

Adding downside risk is pricing pressure from centralised Chinese buying group CMRG. FMG provided limited commentary on the progress of ongoing negotiations, but stated that all it seeks is a return to “fair and proper market practices”, implying that is not currently what’s on offer.

Should you buy Fortescue shares?

According to the note, in response to the results, Bell Potter has retained its hold rating on Fortescue shares with a trimmed price target of $17.10.

Based on its current share price of $17.95, this implies potential downside of around 5% for investors over the next 12 months.

However, Bell Potter expects a 3.3% dividend yield in FY 2027, reducing the total potential negative return.

Commenting on its recommendation, the broker said:

There are no material EPS changes in this report. FMG’s core iron ore operations continue to perform well. However, broad input cost inflation, subdued iron ore price fundamentals, a rising AUD and potential impacts to price realisation all put pressure on our earnings and dividend forecasts. We retain our Hold rating and do not yet see the positive catalysts to re-enter the stock. Our NPV-based valuation is lowered 2%, to $17.10/sh.

The post Are Fortescue shares in the buy zone after its results? appeared first on The Motley Fool Australia.

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