Author: openjargon

There are a lot of ASX shares to choose from on the local market.

To narrow things down, let’s look at three that Morgans has recently recommended as buys.

Here’s what it is recommending to clients:

IDP Education Ltd (ASX: IEL)

Morgans recently upgraded this language testing and student placement company’s shares to a buy rating with a $3.15 price target.

Although it acknowledges that current trading conditions are tough, the broker remains positive on its long-term opportunity. As a result, it thinks now is a good time for patient investors to open a position. It said:

Visa data in IDP’s key destination markets remains in deep contraction, with AUS, CAD, and the UK all experiencing material volume and visa grant rate declines. Positively, IDP’s China IELTS is scaling quickly (13 test centres vs 5 at 1H26), the cost base reset is on track (A$25m net reduction), and the group continues to demonstrate pricing power across both IELTS and Student Placement (SP).

With structural demand drivers for international study intact, a leaner cost base, growing China optionality and ongoing technology/product development (Navi, FastLane, One Skill Retake), we are willing to look through the near-term backdrop on a cyclically depressed multiple. We upgrade to BUY, A$3.15ps PT.

Nick Scali Limited (ASX: NCK)

Another ASX share that Morgans is positive on is furniture retailer Nick Scali.

It has just initiated coverage on the company’s shares with a buy rating and $17.84 price target.

The broker believes its shares are good value, especially given its attractive growth opportunity in the UK market. It explains:

We initiate with a BUY and $17.84 PT on Nick Scali. We use an FY28 PER and DCF when setting our price target as we opt to look through near-term consumer weakness, with the current price providing an attractive entry point. High-quality retailer with a long track record. Nick Scali has delivered long-term EPS growth through disciplined store rollout, LFL growth, best-in-class margins, and operating leverage. Strong cash generation and balance sheet.

Structural negative working capital supports high cash conversion, while the low capital intensity of new store rollouts leaves ample cash flow for dividends and property purchases and/or growth ventures. Store rollout optionality. Further Plush and Nick Scali rollout in ANZ and the Nick Scali rollout opportunity in the UK provide an attractive growth leg.

Treasury Wine Estates Ltd (ASX: TWE)

A third ASX share that has been given the thumbs up by the team at Morgans is wine giant Treasury Wine.

It was positive on Treasury Wine’s investor day update and responded by reiterating its buy rating with a new price target of $5.95.

Commenting on the Penfolds owner, the broker said:

TWE’s Investor Day was the positive share price catalyst we were expecting. Solid depletions growth continues and the mid-point of FY26 EBITS guidance was slightly ahead of consensus estimates. Importantly, Ascent or TWE’s transformation program is expected to deliver sustainable, high-quality earnings growth and deleverage the balance sheet over the medium to long term.

We have upgraded our FY27 and FY28 forecasts. Given TWE’s low trading multiples and our belief that new management can deliver more acceptable returns over time, we reiterate our BUY recommendation with a new A$5.95 price target.

The post Morgans names 3 ASX shares to buy in June appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Magellan Financial Group Ltd (ASX: MFG) share price is in focus today after the company revealed ACCC approval for its merger with Barrenjoey Capital Partners and plans for a group-wide rebrand.

What did Magellan Financial Group report?

• The ACCC granted unconditional clearance for the Magellan-Barrenjoey merger.
• Merger completion is expected in early July, pending the 14-day review period.
• The board plans to seek shareholder approval to change the group’s name to Barrenjoey Group Limited at the 22 October 2026 AGM.
• Following approval, the ASX ticker will change from MFG to BJY.
• The group’s investment management brand will rebrand to Barrenjoey Investment Partners.

What else do investors need to know?

The combined group is expected to benefit from significantly more diversified earnings, extending across investment management, corporate finance, fixed income, and equities. Magellan’s board highlighted that a unified Barrenjoey brand will better reflect the group’s broadened capabilities and next phase of growth.

The proposed rebrand follows consultation with clients, staff, and shareholders after the merger announcement. If approved at the AGM, all branding and ticker updates should be completed soon after.

What did Magellan Financial Group management say?

MFG Chairman Andrew Formica commented:

The ACCC’s clearance is a significant milestone in the completion of the Merger and brings us one step closer in our shared ambition to build one of Australia’s leading financial services businesses.

MFG has built a recognised investment management franchise, supported by deep investment expertise and longstanding client relationships. As we bring these two businesses together it is important that our brand reflects both the expanded capabilities of the combined Group and the opportunities ahead.

The decision to adopt the Barrenjoey name recognises the transformational nature of the Merger and follows feedback from our clients, our people and our shareholders since announcement of the Merger. A unified brand will provide greater clarity while reflecting the innovative culture, alignment of interests and commitment to clients that will define the combined organisation.

What’s next for Magellan Financial Group?

Subject to statutory timing, the merger is set to complete in early July. Management’s attention will then shift to integrating teams and processes, supporting the expanded business across its new lines of operation. The group plans to seek shareholder approval for the rebrand at the October AGM, paving the way for the new Barrenjoey Group Limited to chart its next growth phase.

Magellan says the merged entity’s broader earnings base and refreshed brand should better position the group to compete in Australia’s dynamic financial services landscape.

Magellan Financial Group share price snapshot

Over the past 12 months, Magellan Financial Group shares have risen 8%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 2% over the same period.

View Original Announcement

The post Magellan Financial Group shares: ACCC backs merger and rebrand plans appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

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 summary of the company announcement. 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.

The DigiCo Infrastructure REIT (ASX: DGT) share price is in focus today after announcing a conditional sale of its LAX1 and LAX2 data centre sites in Los Angeles, freeing up around $1 billion in liquidity and reaffirming FY26 underlying EBITDA guidance.

What did DigiCo Infrastructure REIT report?

• Agreed to sell LAX1 and LAX2 sites in Los Angeles at a price broadly in line with their acquisition cost
• Pro-forma available liquidity expected to increase to approximately $1.0 billion after completion of recent sales
• Proceeds will support investment in the SYD1 development in Sydney
• FY26 underlying EBITDA guidance maintained at $125 million
• Completion of the LAX sale is targeted for the first half of FY27, pending conditions

What else do investors need to know?

DigiCo says the LAX1 and LAX2 divestment aligns with its plan to recycle capital from non-core assets into higher-return projects. Plans are underway to move these funds into the SYD1 development, described as a core strategic initiative for the REIT. The LAX sale follows the already-flagged sale of the Chicago (CHI1) asset, further boosting available cash.

Completion of the sale is conditional upon standard closing requirements and is expected in the first half of FY27. Management affirmed that maintaining strong liquidity will support DigiCo’s development pipeline and long-term growth objectives.

What’s next for DigiCo Infrastructure REIT?

The REIT’s outlook remains steady, with underlying EBITDA guidance for FY26 reaffirmed despite the site disposals. Management has flagged a focus on recycling capital into high-return projects like SYD1, positioning DigiCo for potential growth in the data centre space.

Investors can expect updates on the SYD1 development as recycled capital is deployed and may see further portfolio optimisation as the group progresses its global growth and development mandates.

DigiCo Infrastructure REIT share price snapshot

Over the past 12 months, DigiCo Infrastructure REIT shares have declined 32%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 2% over the same period.

View Original Announcement

The post DigiCo Infrastructure REIT boosts liquidity via US sale and reaffirms FY26 earnings appeared first on The Motley Fool Australia.

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• Magellan Financial Group shares: ACCC backs merger and rebrand plans
• Woodside Energy lifts Browse JV stake under pre-emption deal
• Vault Minerals lodges key permit, on track for Sugar Zone restart
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

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 summary of the company announcement. 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.

Elon Musk’s SpaceX (NASDAQ: SPCX) is preparing to make its stock market debut after completing the largest initial public offering (IPO) on record.

The rocket and satellite company has priced 555.6 million shares at US$135 each, raising US$75 billion and valuing the business at around US$1.77 trillion.

SpaceX shares are expected to begin trading on the Nasdaq on Friday in the United States, which will be late Friday night in Australia.

While everyday investors have rushed to take part, one of the biggest orders has come from the world’s largest asset manager.

Let’s dive right in.

BlackRock places a huge order

According to The Wall Street Journal, BlackRock Inc (NYSE: BLK) submitted an order for at least US$5 billion worth of SpaceX shares.

Other large asset managers reportedly placed similar orders, while sovereign wealth funds and wealthy family offices also joined the queue. One family office is said to have requested more than US$1 billion of stock.

In total, SpaceX received more than US$250 billion in demand, leaving the offer close to 4 times oversubscribed. That means not every order will be filled.

Nonetheless, BlackRock’s US$5 billion commitment will still attract significant attention. The company is the world’s largest asset manager, overseeing trillions of dollars in assets across shares, bonds, ETFs, and other investments for clients worldwide.

Australians pile into the IPO

Interest has also been strong closer to home.

The Australian reported that CommSec closed its books for the SpaceX IPO after receiving more than 30,000 applications.

Globally, retail buyers requested more than US$70 billion worth of shares, with at least 20% of the offer expected to go to individuals. That’s a much bigger allocation than is normally set aside for the public in a float of this size.

The rush also means many applicants are likely to receive fewer shares than they asked for, while some may miss out altogether.

Should investors follow BlackRock?

BlackRock’s involvement is a strong vote of confidence, but it doesn’t remove the risks attached to the valuation.

SpaceX generated US$18.7 billion in revenue during 2025, which means the company is being valued at almost 95 times last year’s sales. It’s also spending heavily across rockets, satellites, Starlink, and AI infrastructure.

Investors are therefore paying today for growth that may take years to arrive.

Heavy demand and a limited number of shares could still support the stock when trading begins. But BlackRock’s US$5 billion commitment isn’t enough reason on its own to buy.

SpaceX may have a strong long-term future, but at a valuation of US$1.77 trillion, the company will need to deliver on some very high expectations.

The post BlackRock just ordered US$5 billion of SpaceX shares. Should you follow? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 BlackRock. 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.

The Woodside Energy Group Ltd (ASX: WDS) share price is in focus today after the company exercised its right to acquire a further 10.67% interest in the Browse Joint Venture for up to US$400 million, strengthening its position in Australia’s largest undeveloped conventional gas resource.

What did Woodside Energy report?

• Exercised pre-emption right to acquire a 10.67% interest in the Browse Joint Venture (BJV) from PetroChina
• Cash payment of US$225 million plus reimbursement of cash calls since June 2025
• Potential additional payment of US$175 million contingent on final investment decision by 30 June 2032
• Woodside’s equity in BJV lifts to 41.27%, if no other pre-emption exercised
• Acquisition subject to regulatory approvals and conditions precedent

What else do investors need to know?

Woodside’s move follows significant interest in the Browse resource, which can support production of up to 11.4 million tonnes of LNG, LPG, and domestic gas per year. This strategic purchase reflects both growing demand for LNG in the Asia Pacific region and the potential for new gas supplies into Western Australia.

The company believes its integrated interests in the Browse resource and North West Shelf infrastructure can drive strong returns for shareholders and provide long-term economic benefits for the nation. The deal closely matches the transaction terms previously agreed between PetroChina and INPEX Corporation.

What’s next for Woodside Energy?

Completion of this acquisition is still subject to standard regulatory approvals, and Woodside will continue working with Browse Joint Venture partners to progress the development. The company remains focused on advancing technical planning, commercial agreements, and securing the necessary approvals.

Woodside has emphasised that any final investment decision for Browse will be made within its disciplined capital allocation framework, keeping shareholder returns front of mind.

Woodside Energy share price snapshot

Over the past 12 months, Woodside shares have risen 34%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Woodside Energy lifts Browse JV stake under pre-emption deal appeared first on The Motley Fool Australia.

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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 summary of the company announcement. 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.

If you are hunting for outsized returns for your portfolio, it could be worth checking out the small-cap ASX share in this article.

It has just been recommended for investors with a high risk tolerance by analysts at Bell Potter, who are tipping massive upside over the next 12 months.

Which small-cap ASX share?

Bell Potter is bullish on Aurum Resources Ltd (ASX: AUE), which is a gold exploration and development company with an asset portfolio located in the West African country of Côte d’Ivoire.

The broker highlights that the small-cap ASX share’s flagship project is the 3.2Moz Boundiali Gold Project (BGP), where substantial, ongoing diamond drilling programs have defined large-scale mineralised systems with strong resource growth potential.

It also owns the 1.2Moz Napie Gold Project, which is the subject of ongoing resource extension drilling.

Bell Potter was pleased with the release of the Pre-Feasibility Study for the Boundiali Gold Project, which included a post-tax NPV of ~US$1.5 billion. It explains:

AUE has met a major project development and de-risking milestone with the completion and release of the Pre-Feasibility Study (PFS) for its Boundiali Gold Project (BGP) in northern Côte d’Ivoire. It outlines a maiden Ore Reserve Estimate of 42.1 Mt at 0.9 g/t Au for 1.21Moz, which supports a conventional open-pit mining operation producing 185kozpa (yrs 1-5) and ~140kozpa over 11-year LOM at average All-In-Sustaining-Costs of US$1,951/oz via a conventional 6.0Mtpa processing plant for pre-production CAPEX of US$342m. Key financial metrics calculated by AUE using consensus forecast mean gold price of US$4,076/oz include a post-tax NPV(5%) of ~ US$1.5 billion, an IRR of 119% and <1 year payback.

The broker believes this marks a major derisking milestone. It adds:

The PFS makes a compelling case for project development and marks a major derisking milestone. Compared with our in-house estimates, slightly lower grades and recoveries are more than offset by a higher mill throughput, gold production rates and lower capital costs. As it stands, Boundiali presents as an attractive development project, with recent Resource growth and confidence upgrades leaving substantial scope for further improvements to the project metrics ahead of completion of the Definitive Feasibility Study (DFS).

Huge potential returns

According to the note, Bell Potter has retained its speculative buy rating on the small-cap ASX share with an improved price target of $1.50 (from $1.30). Based on its current share price of 56 cents, this implies potential upside of 168% over the next 12 months.

Speaking about its investment thesis, the broker said:

AUE is one of the most successful gold exploration companies active in West Africa. Its management team has a demonstrated track record of discovery, Resource growth, project construction, development, operation and divestment. AUE is well funded, has outlined a compelling development project with exploration upside. It is strategically attractive, with Perseus Mining having joined the register. We retain our Speculative Buy rating and lift our valuation to $1.50/sh.

The post Meet the small-cap ASX share Bell Potter is tipping to rise 168% 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 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.

Markets in 2026 have been a study in concentration. 

The Nasdaq Composite Index (NASDAQ: .IXIC) and the S&P 500 Index (SP: .INX) keep printing record highs, powered by the companies racing to build the artificial intelligence economy – chips, memory, data centres, and the cash-hungry giants spending big to win. 

Record-breaking listings are adding to the frenzy, with Elon Musk’s SpaceX (NASDAQ: SPCX) set to debut on the Nasdaq in what may be the largest initial public offering (IPO) in history.

Amid all that exuberance, one asset has been left behind.

Bitcoin (CRYPTO: BTC) is down more than 40% over the past 12 months and around 28% since the start of the year. It now trades near US$62,000, well below the record high of roughly US$126,000 set last spring. More than US$1 trillion in value has evaporated in eight months.

So what is going on?

Follow the liquidity

Bitcoin has a fixed supply. Only 21 million coins will ever exist, and that ceiling is hard-coded. When supply cannot move, price becomes a story about demand – and demand is really a story about where money is flowing.

Right now, capital is chasing momentum. The headlines belong to AI, semiconductors, memory, and mega-IPOs, and money tends to follow the loudest narrative. SpaceX’s listing alone is expected to soak up tens of billions of dollars in fresh capital. Every dollar committed to the next hot story is a dollar not parked in Bitcoin.

This matters because Bitcoin no longer trades in its own universe. Since spot Bitcoin ETFs arrived and large institutions gained easy access, the asset has behaved like any other risk play – rallying when liquidity is loose and sagging when it tightens. With markets now pricing in the possibility of higher-for-longer interest rates, the easy money that once lifted speculative assets is harder to find.

Bitcoin isn’t alone

If this were purely a crypto problem, you might expect everything else to be flying. It isn’t.

Gold and silver, the traditional safe havens, have also come off the boil after strong runs. And closer to home, plenty of quality smaller companies have drifted sideways or lower despite solid fundamentals underneath them. Good businesses are being ignored not because anything broke, but because attention – and capital – is pooling in a handful of crowded trades.

That is the story of 2026 so far. When liquidity converges on one theme, even sound assets can be starved of buyers. Price and value can part ways for a while.

None of this makes Bitcoin “safe”. It remains a speculative asset whose future hinges on unresolved questions – how regulators treat it, how central banks set policy, whether it earns lasting status as a store of value, and how widely it gets used as an alternative form of money. Those debates are far from settled.

Foolish Takeaway

It helps to remember Bitcoin’s character. Its history is a cycle of brutal drawdowns followed by recoveries that have, so far, climbed even higher than before. Falls of 50% or more are not new. They have happened repeatedly, and each time, the obituaries were written early.

That pattern is no guarantee. But it is a reminder that volatility is the toll Bitcoin charges, not necessarily a sign the journey has ended.

For now, the share market’s record-setting names are absorbing the oxygen, and Bitcoin is paying the price for being yesterday’s headline. Liquidity, though, is restless. It rotates. When the AI euphoria cools and attention broadens again, the assets left behind in 2026 may look very different in hindsight. Patient investors who understand what they own – and can stomach the swings – are usually the ones still standing when the cycle turns.

The post Why is the Bitcoin price down while shares hit highs? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant owns Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

If you have a high tolerance for risk and want exposure to gold, then it could be worth considering the speculative ASX share in this article.

That’s because if Bell Potter is on the money with its recommendation, investors could potentially double their money over the next 12 months.

Which speculative ASX gold share?

The share that Bell Potter has been running the rule over is Falcon Metals Ltd (ASX: FAL).

It is an Australian gold explorer behind the 100%-owned, high grade Blue Moon gold project at Bendigo.

Bell Potter notes that drilling at Blue Moon has confirmed multiple zones of visible gold within quartz reefs hosted by the Garden Gully anticline, which is a structural setting that historically produced 5.2 Moz @ ~15 g/t Au.

The broker highlights that the ASX gold share has identified four stacked high-grade target zones. These are Morning Glory (~30–40m below surface), Jasmine (~300-400m), Lotus (~500–700m) and Dahlia (~750–900m).

Importantly, each remains open along strike and down-dip, with visible gold observed in multiple sections.

Based on what it has seen, Bell Potter has given the company a valuation of $245 million in its initiation note. It explains:

For valuation purposes we assume: (1) a potential future Mineral Inventory of 6.3Mt at 14.5g/t Au for 2.9Moz contained Au; (2) a Mining Inventory of 4.7Mt at 11.6g/t Au for 1.8Moz contained Au; (3) production of 107kozpa from CY32 at a mining rate of 300ktpa; and (4) A$250m of construction capex. On this basis, we derive a risked, undiluted net present value (NPV) of $170m for Blue Moon (DCF, nominal, post-tax, 10% discount rate, 90% risked) and a diluted equity value of $245m.

Shares tipped to more than double

According to the note, Bell Potter has initiated coverage on the ASX gold share with a speculative buy rating and $1.10 price target.

Based on its current share price of 48 cents, this implies potential upside of approximately 130% over the next 12 months.

Commenting on its recommendation, Bell Potter said:

We initiate coverage of FAL with a SPECULATIVE BUY recommendation and a A$1.10/sh valuation. In our view, the market is increasingly valuing Blue Moon as a district-scale extension of the Bendigo system rather than a one-off discovery.

The upside case depends less on a single spectacular visible-gold intercept and more on proving continuity along strike and down plunge across the four mineralised zones, precisely what the step-out program is beginning to deliver, offering re-rating potential. Continuity and repeatability of high-grade results are early positive indicators that Blue Moon’s average Resource grade may prove materially higher once formally estimated. Given mining earnings are highly sensitive to grade, this presents meaningful upside to future operational value.

The post Why this speculative ASX gold share could rocket 130% 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 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.

Artificial intelligence might live in the cloud, but the foundations get built on the ground. 

Every chatbot answer and every model trained has to run somewhere – and that somewhere is a vast, power-hungry data centre.

That simple fact is driving one of the largest capital spending waves in corporate history.

Concrete, copper, and kilowatts

The world’s biggest technology companies – Amazon, Microsoft, Alphabet, and Meta Platforms – are racing to build the physical backbone of AI. Together, these hyperscalers plan to spend a combined US$725 billion on AI development this year, with roughly 70% to 75% of that flowing straight into infrastructure. 

Infrastructure here means something concrete. It means the data centres themselves, the chips inside them, the networking that connects them, and – crucially – the power grids and cooling systems that keep them running.

And this is not a one-year story. There are Broad estimates that global data centre spending will exceed US$2 trillion over the next five years. 

A data centre is essentially a warehouse full of servers that runs around the clock. It draws enormous amounts of electricity, generates significant heat, and requires constant cooling. Build thousands of them, and you create huge, durable demand for utilities, copper, engineering, and essential-service operators.

That is the part of the AI trade that often gets overlooked. The picks and shovels, not the gold.

Why a basket beats a single bet

Picking the single biggest winner from this buildout is hard. Will it be the chipmaker, the power company, the cooling specialist, or the copper miner? Guess wrong, and you can miss the whole move.

This is where exchange-traded funds (ETFs) earn their keep. Instead of betting on one name, an ETF spreads your capital across a basket of companies tied to the same theme. You trade the chance of picking a single moonshot for far lower concentration risk. 

Two ASX ETFs offer a neat way in.

The first is the VanEck FTSE Global Infrastructure (Hedged) ETF (ASX: IFRA). It holds around 150 listed infrastructure companies across developed markets, spanning electric utilities, toll roads, pipelines, airports, and rail networks. 

Think of IFRA as the boring backbone of the boom. Every data centre needs a power grid, and this fund owns the companies that run them. It currently trades around $25.50 and is forecast to yield almost 3% over the next 12 months. 

The second is the more direct play – the Global X Artificial Intelligence Infrastructure ETF (ASX: AINF). Launched in 2025, it was the first ASX-listed fund built specifically around the physical AI buildout.

AINF holds an equally weighted basket of 31 stocks across energy, materials, and data infrastructure, including copper and uranium producers, utilities, and engineering firms. It has large positions in Delta Electronics, GE Vernova, and Vertiv Holdings. 

The trade-off is clear. IFRA is broader, hedged, and pays an income. AINF is narrower, more thematic, and built purely for this moment.

Foolish Takeaway

The AI data centre boom is real, and it runs on far more than software. It runs on power, metal, and physical construction – the kind of long-lived assets that tend to keep earning long after the hype fades.

Neither fund is risk-free. A slowdown in hyperscaler spending or a renewed rise in long bond yields could weigh on both. But for investors who believe the buildout has years to run, IFRA and AINF offer two distinct ways to own the foundations rather than guess the winner.

Sometimes the smartest way to play a gold rush is to back the people selling the shovels.

The post 2 ASX ETFs positioned for the booming AI data centre buildout appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, GE Vernova, Meta Platforms, Microsoft, and Vertiv. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Want to build long-term wealth?

A good place to start is with ASX 200 shares that have the potential to compound earnings over many years. These are businesses with strong market positions, long growth runways, and the ability to reinvest for the future.

With that in mind, here are two ASX 200 shares that could be worth buying and holding for the next decade.

Goodman Group (ASX: GMG)

The first ASX 200 share to look at for the long term is Goodman.

It has become one of the most important property groups on the ASX, but it is no longer just a traditional industrial landlord.

The company owns, develops, and manages high-quality logistics, warehousing, and industrial properties in major global markets. These assets are positioned close to cities, transport corridors, and key supply chain hubs.

That is more important than you think because modern businesses need faster delivery, better inventory management, and more efficient distribution networks. Ecommerce, automation, and supply chain resilience have all increased the value of well-located industrial property.

Goodman also has another powerful growth angle: data centres.

As artificial intelligence, cloud computing, and digital services require more infrastructure, demand for data centre capacity could remain strong for many years. Goodman’s land holdings, development capability, and global relationships could put it in a strong position to benefit.

Overall, for investors thinking in decades rather than months, that could make it one of the ASX 200’s most attractive long-term compounders.

Netwealth Group Ltd (ASX: NWL)

Another ASX 200 share to consider for the long haul is Netwealth.

It is not a household name like a bank or supermarket, but it plays an important role behind the scenes of Australia’s wealth management industry.

Its platform helps financial advisers manage client portfolios, administration, reporting, investments, and account structures. That may sound unexciting, but it is exactly the kind of infrastructure that advisers rely on every day.

The strength of the business is in its operating model. As more funds move onto the platform, Netwealth can benefit from scale. Revenue can grow with funds under administration, while technology and automation can help support margins over time.

It is also exposed to a long-term structural tailwind. Australia has a large and growing pool of superannuation and investment wealth, and advisers continue to need modern platforms to serve clients efficiently.

That gives Netwealth a runway that could last well beyond the next year or two.

Competition is strong, but Netwealth has shown that specialist platforms can keep taking share from older incumbents when they deliver a better user experience. Over 10 years, that kind of steady market share gain could be very powerful.

The post 2 incredible ASX 200 shares to buy and hold for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth 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.