Demand for data centres is growing rapidly as businesses invest more in cloud computing and artificial intelligence (AI).

And one share on the S&P/ASX 200 Index (ASX: XJO) is positioning itself to benefit from that spending, with a substantial amount of future business already secured.

I think its long-term prospects look very promising despite what its recent share price weakness might suggest.

Here’s why.

NEXTDC Ltd (ASX: NXT)

NEXTDC is one of Australia’s leading data centre operators, providing the infrastructure that businesses need to store and process enormous amounts of information.

I like its position in the market because building data centres is becoming increasingly complicated.

Companies need access to suitable locations, reliable electricity supplies, and high-quality connectivity. NEXTDC has spent years developing these capabilities and establishing relationships with major customers.

With demand for AI and cloud services continuing to increase, I believe the company has a significant opportunity to expand its operations.

And there is already evidence of that growth. The ASX 200 share generated underlying EBITDA of $216.7 million in FY25, which increased 15% to $248.8 million in FY26.

Management is now guiding for underlying EBITDA of between $385 million and $410 million in FY27. That represents potential earnings growth of approximately 55% to 65% in just one year.

But I think the longer-term outlook is even more exciting.

NEXTDC has secured substantial customer commitments for data centre capacity that is still being developed.

As those facilities become operational and customers start paying for their contracted capacity, the company expects its existing contracts to eventually support more than $1 billion in annualised contracted EBITDA.

That is approximately four times what NEXTDC generated in FY26, demonstrating just how much larger the business could become in the not-so-distant future.

Why is this ASX share falling?

Despite this outlook, this ASX 200 share has fallen to a 52-week low of $9.75 on Tuesday, around 42% below its 52-week high of $16.78.

I suspect concerns about the enormous investment required across the AI infrastructure industry are contributing to the weakness.

The recent failed IPO of Firmus Technologies has also raised questions about investor confidence in the sector.

NEXTDC faces its own challenges. Building new facilities requires substantial capital, and construction delays, rising costs, or funding pressures could affect its growth plans.

Nevertheless, I think the strength of its contracted demand provides some reassurance.

Customers have already committed to substantial future capacity, giving NEXTDC a clearer growth path than many companies hoping to benefit from the AI boom.

Foolish takeaway

I think NEXTDC shares are a strong buy at around $9.75.

The next few years will involve substantial investment and execution, but the earnings potential is becoming increasingly clear.

For me, the prospect of this ASX 200 share growing into a much larger business makes today’s share price an opportunity I would be happy to take.

The post Why I think this ASX 200 share at a 52-week low is a strong buy appeared first on The Motley Fool Australia.

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• 6 ASX shares to buy in today’s weak market: experts
• Nextdc vs Macquarie Technology Group: Which data centre share shines brighter?
• NextDC, Generation Development, Fortescue shares hit 52-week low. Can they rebound?

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 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.

Energy stocks have been in focus over the past few months, with the conflicts in the Middle East and Ukraine sending oil prices higher and raising broader concerns about energy supplies.

Today I’m looking at two very different energy stocks – a refiner and a uranium company – which brokers have tipped for solid share price gains over the next 12 months.

Let’s have a look at who they like.

NexGen Energy Ltd (ASX: NXG)

NexGen is a Canada-focused uranium project developer that is focused on developing the Rook 1 Project in the southwestern Athabasca Basin of Saskatchewan.

The project’s Arrow deposit has a mineral resource of 257 million pounds of uranium, and the company recently said it had intersected numerous other mineralised zones adjacent to Arrow, which will be subject to further exploration to assess their economic potential.

NexGen has recently won a number of key approvals for the project, including to establish a temporary airstrip and to expand the exploration camp.

Broker Barrenjoey has just started covering NexGen shares and has an overweight rating on the stock with a price target of $14.80, compared to the current price of $12.24.

The broker said Rook was a “very high-grade deposit”, with first production expected in 2029-30.

They said the company could have the option to expand total production from 234 million pounds of uranium to 333 million pounds through the development of nearby resources.

Barrenjoey said the long-term outlook for the uranium price was strong, with their forecast of US$100 per pound higher than consensus estimates of US$87 per pound.

Viva Energy Ltd (ASX: VEA)

Viva Energy shares are up more than 80% over the past 12 months, but Macquarie’s analyst team believes they still have a way to go.

Macquarie has just released a new research note on Viva with an overweight recommendation and a price target of $4 compared to the current price of $3.16.

They are also forecasting a strong dividend yield of 8.1% this year, falling to 4.7% next year.

Macquarie has increased its forecast for Viva’s refining margins, saying the market remains tight despite a gradual recovery in trade through the Strait of Hormuz.

They said refining tailwinds were likely to persist through CY27, although soft retail fuel margins appear to be a larger drag in the second half of 2026.

Macquarie said tobacco sales were improving and new management strategies around product range and rotation were likely having some early effect.

Viva Energy is valued at $5.26 billion.

The post 2 ASX energy players that could return 20% to 30% over the next year appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Santos vs Viva Energy: Which ASX energy stock gets my vote today?
• Viva Energy, Codan, AMP shares reach 52-week highs: How much higher can they go?

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

Evolution Mining vs Northern Star Resources shares

Australia boasts some world-class gold stocks, but if you’re mulling a $1,000 investment, should you go for Evolution Mining Ltd (ASX: EVN) or Northern Star Resources Ltd (ASX: NST)? Both are ASX giants in the gold space, each with their own strengths and quirks. Here’s my take on how Evolution Mining vs Northern Star Resources shares stack up for an investor today.

The case for Evolution Mining

Evolution Mining is one of Australia’s biggest listed gold miners, with a portfolio spanning both domestic and Canadian operations. Its key projects include the Cowal mine in New South Wales—often flagged as Evolution’s main earnings engine—alongside assets in Queensland, Western Australia, and Canada.

In terms of the numbers, a few points stand out. First, Evolution Mining trades on a P/E ratio of 18.07, which is noticeably lower than Northern Star’s, making it appear more attractively valued relative to earnings. Its dividend yield sits at 3.12%, also above its peer—a sign of a shareholder-friendly payout policy. Every dividend in recent years (and those forecast) is fully franked, which can be a draw for Aussie investors looking to maximise after-tax returns. The company’s year to date (YTD) share price return is a positive 6.94%. That positive momentum, combined with a market cap of $26.89 billion, underlines Evolution’s strong standing in the local resources scene.

Evolution’s consistent 100% franking on dividends and a steady payout track over the past decade make it a solid choice for those seeking reliable income streams.

The case for Northern Star Resources

Northern Star Resources is another major Australian gold producer with a global reach, owning mines across Western Australia and North America. The company’s flagship production centres are at Kalgoorlie and Yandal (WA), and Alaska’s Pogo goldfields. Northern Star has grown rapidly through clever acquisitions and puts plenty of focus on ongoing exploration to keep its pipeline healthy.

Looking at the data, Northern Star boasts a market cap of $34.75 billion—making it the larger player in this comparison. Its stated earnings per share (EPS) of 1.157 is quite a bit ahead of Evolution’s (though see the note below about EPS/P/E calculation consistency). However, the P/E ratio is 21.08, higher than Evolution’s, so the market is effectively paying more for each dollar of Northern Star’s earnings.

On the dividend front, the current yield is 2.26%, with a mixed history for franking—recent dividends have shifted between 0% and 100% franking, whereas Evolution’s are uniformly fully franked. Notably, despite higher total dividends per share in the most recent period, the actual yield trails Evolution due to the higher share price. The company’s share price is down 6.7% YTD, indicating some recent underperformance versus Evolution.

Valuation comparison

Here are the key valuation and yield metrics side-by-side:

	Evolution Mining	Northern Star Resources
Market Cap	$26.89 billion	$34.75 billion
P/E Ratio	18.07	21.08
Dividend Yield	3.12%	2.26%
Dividend per Share	0.42	0.55
Franking	100%	Varies (recently mixed 0%/100%)
Earnings per Share (EPS)	0.660	1.157
YTD Return	6.94%	-6.70%

Note: Northern Star Resources’ reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

Which is the better buy?

Both Evolution Mining and Northern Star Resources are established, profitable, and highly regarded gold stocks on the ASX. For my $1000 today, though, I’d lean toward Evolution Mining. Here’s why: Evolution offers a meaningfully higher dividend yield (3.12% vs 2.26%), with fully franked payments—maximising take-home value for local investors. Its current P/E ratio is lower, which might indicate better value compared to Northern Star at current prices. Evolution has also delivered positive share price momentum this year, while Northern Star has gone backwards. While Northern Star is the larger of the two and boasts higher stated EPS, the mixed franking and higher P/E make it less appealing at the moment, especially with its 2026 share price still lagging. For ASX investors chasing strong potential returns and fully franked income in gold, my pick would be Evolution Mining on today’s numbers.

The post Evolution Mining vs Northern Star Resources: Which gold stock is better for a $1,000 investment? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Experts tip CBA and these ASX 200 shares as sells
• 5 things to watch on the ASX 200 on Monday
• 9 ASX 200 shares upgraded by brokers this week
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.