Author: openjargon

It’s been a fairly pleasant day for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares this Wednesday. At the time of writing, the ASX 200 has advanced 0.33% to just under 8,840 points. But let’s talk about what’s happening with the Macquarie Group Ltd (ASX: MQG) share price.

Macquarie shares are also enjoying some time in the sun this hump day. The diversified financial stock closed at $253.04 yesterday evening but opened at $255.22 this morning. Just after midday, Macquarie went even higher, blowing past $257 to top out at $257.29. That’s a new all-time record high for the Macquarie share price.

At present, the financial stock has cooled off a little, but is still trading at $255.80 a share, up a comfortable 1.12% for the session thus far.

This gain puts Macquarie shares up a sizeable 25.6% year to date in 2026, and up 14% over the past 12 months. Investors who held back in March when the company fell below $200 a share during the initial sell-off following the onset of the US-Iran War have certainly been rewarded.

Why is the Macquarie share price hitting new record highs today?

There’s no smoking gun for today’s new record high for the Macquarie share price. The company hasn’t made any significant announcements for a while.

What we can say is that sentiment on Macquarie shares has been improving since the company’s latest earnings were released back in May. As we covered at the time, these earnings were impressive, with Macquarie reporting higher return on equity, a 30% rise in net profits after tax to $4.85 billion, and a 30% boost to earnings per share (EPS) to $12.77. The company also raised its final dividend by a healthy 7.7% to $4.20 per share.

Macquarie has a large and immensely profitable investment banking division. Perhaps investors are betting that the company will continue to prosper amid the heightened volatility this year has brought.

It’s also worth noting that Macquarie shares are being looked upon favourably by brokers. As my Fool colleague Samantha Menzies looked at the end of last month, a “majority of brokers have a strong buy rating on Macquarie Group shares”.

Let’s see if this ASX 200 financial stock can keep breaking its records.

At the current Macquarie share price, the company trades on a price-to-earnings (P/E) ratio of 20.2 and a dividend yield of 2.73%.

The post The Macquarie share price just hit a new record high appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.

Santos Ltd (ASX: STO) shares have dipped into the red in Wednesday afternoon trade.

The oil and gas producer’s shares are down around 0.2% and changing hands at $7.70 at the time of writing.

But today’s small dip has barely dented gains made over the past week.

Santos shares tumbled 9% through June and into the first week of July. But have now rebounded around 8% over the past week and are back to levels seen during a rally in mid-March when escalating conflict in the Middle East raised concerns about global oil supply.

The shares are now up around 25% year to date, but are still roughly 1% below the trading levels seen this time last year.

Why are Santos shares in the spotlight this week?

The oil and gas major’s shares are the talk of the town after the US-Iran ceasefire broke down last week, and war escalated again between the two nations.

Santos shares gradually cooled through June and into July, off the back of expectations that the conflict was winding down. When the original peace deal broke in June, Santos fell 8% in a single session. 

But a stark reversal over the past week has reinvigorated the war risk tailwinds that saw the company’s shares fly higher earlier this year. 

Escalating conflict has quickly caused a spike in oil prices, which in turn acts as a strong tailwind for Santos shares.

Trading Economics data shows that the price of WTI crude oil has now spiked over US$80 per barrel.

“Oil prices have rallied this week as renewed tensions between Washington and Tehran heightened supply concerns, adding fresh uncertainty after Persian Gulf producers increased exports following the signing of the interim peace agreement,” Trading Economics said.

The good news for Santos is that the business can continue to perform well regardless of whether geopolitical uncertainty is high or low.

A few company-specific price drivers, including a rise in production and improved cash flow, have also helped Santos shares climb higher.

In late April, Santos posted its March quarter update, where it revealed a 1% increase in production and a 3% rise in sales revenue versus the prior quarter. 

Its free cash flow from operations of US$383 million was in line with Q4 2025, and management reaffirmed its full-year 2026 production and cost guidance.

The company also recently confirmed it has now hit continuous production at its Pikka oil project in Alaska. The project is now producing about 20,000 barrels of oil per day, which will ramp up to 80,000 during the third quarter of 2026.

Are Santos shares a buy, sell, or hold now?

The experts are very bullish about the outlook for Santos this year.

Market Index data shows that all brokers agree on a buy rating on Santos shares. The average $8.70 target price implies a potential 13% upside at the time of writing. 

Macquarie is one broker that has an optimistic outlook on Santos. It said that the company has had solid sequential growth in its second-quarter production and that it currently sees the producer tracking to the lower end of its CY26 guidance range. The team has a buy rating and a $9 target price on the shares. 

The post Why is everyone talking about Santos shares this week? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• ASX 200 energy shares rebound after US-Iran peace deal falls apart
• How much do I need in my superannuation to get $50k per year in passive income?

Motley Fool contributor Samantha Menzies 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.

BHP Ltd (ASX: BHP) shares are enjoying a strong session on Wednesday.

In early afternoon trade, BHP shares are up 4% to $61.12. They’re comfortably outperforming the benchmark S&P/ASX 200 Index (ASX: XJO), which is up 0.4%.

The gains continue a recent rebound for the mining heavyweight. BHP shares have climbed around 6% over the past five trading days, though they remain down roughly 6% over the past month.

Zooming out, however, the picture looks much brighter. BHP shares have rallied about 34% since the start of the year and are up approximately 54% over the past 12 months. By comparison, the ASX 200 has gained around 3% over the same period.

So, what’s driving BHP’s sharp share price jump today?

A sector-wide rally lifts BHP

Unlike some large moves in the past, Wednesday’s rally doesn’t appear to be linked to a major company announcement.

Instead, BHP is benefiting from renewed investor appetite for mining stocks as sentiment towards the resources sector improves. The S&P/ASX 200 Resources Index (ASX: XJR) was up 1.6% around midday.

After a period of weakness driven by concerns over global growth, commodity demand, and geopolitical uncertainty, investors have rotated back into diversified miners. BHP shares have emerged as one of the biggest beneficiaries.

Copper remains the key long-term story

While iron ore remains BHP’s largest earnings driver, investors are increasingly valuing the company as a global copper producer.

The miner has spent several years repositioning its portfolio towards commodities expected to benefit from long-term electrification trends, including copper through assets such as Escondida, Olympic Dam, and the recently acquired OZ Minerals business.

That shift means BHP is often viewed as one of the ASX’s premier large-cap copper exposures.

Interestingly, however, today’s rally wasn’t sparked by a surge in copper prices. Benchmark copper prices were little changed overnight, slipping around 0.2%, and remain modestly lower than they were a month ago.

Even so, prices are still well above year-ago levels. This reflects a constructive long-term outlook supported by growing demand from artificial intelligence infrastructure, renewable energy projects, and electric vehicles.

Looking ahead

With no major company news driving Wednesday’s gains, the rally appears to reflect improving sentiment towards the mining sector rather than a fundamental change in BHP’s outlook.

Investors will now turn their attention to BHP’s upcoming quarterly operational update next month. This should provide fresh insight into production across its iron ore and copper operations.

In the meantime, movements in copper and iron ore prices, as well as any signs of further economic stimulus from China, are likely to remain the biggest drivers of BHP shares.

For long-term investors, today’s rally also highlights an important shift in the investment case.

BHP remains the world’s largest-listed iron ore miner. But its growing exposure to copper means the company’s fortunes are becoming increasingly tied to a metal many analysts expect will play a central role in the global energy transition.

The post Why are BHP shares surging 4% today despite a flat copper price? appeared first on The Motley Fool Australia.

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• Which ASX copper and gold stock could rocket 200%?
• Up almost 50%, is it too late to buy BHP shares?
• What did the market look like 10 years ago? Here’s what’s changed for the ASX 200
• How much superannuation do you need to earn $5,000 a month in passive income?
• Should you buy BHP shares FY27? Here’s what experts are saying

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.

Treasury Wine Estates Ltd (ASX: TWE) shares are climbing higher into the green in morning trade on Wednesday. 

At the time of writing, the shares are up around 0.5% and changing hands for $4.72 a piece.

The latest increase represents around a 39% rebound from a 12-year low recorded in late-March. It’s certainly a step in the right direction, but there is still some way before Treasury Wine Estates can recover losses shed through 2025.

For the year to date, the shares are down around 11% and are 41% lower than this time last year.

Why are Treasury Wine Estates shares rebounding?

After hitting the lowest trading value in over a decade in late-March, Treasury Wine Estates shares finally started rebounding after news that the company had begun trading below what its assets are worth. 

The update encouraged bargain-hunting investors to step in while the shares were trading below fair value.

The rebound picked up pace in late-April when the company announced it is transitioning to a new regional operating model to help improve efficiency.

The move is part of TWE Ascent, Treasury Wine’s global transformation program, which is intended to address the headwinds of recent years and position the business for sustainable growth.

The ASX 200 wine stock will switch to the new regional operating model as of the 1st of October. This will see the company operate four regional divisions. These include, the Americas, ANZ (Australia and New Zealand) combined with Europe, Greater China, and the emerging markets (Rest of Asia, Middle East, and Africa).

Treasury Wine Estates shares climbed even higher in early June. The increase followed an investor day update where the company unveiled its latest turnaround strategy. The transformation plan is expected to help simplify the business and help restore earnings growth.

Key updates included a sharper focus on Treasury Wine’s strongest brands, a review of its Americas business, and plans to target $100 million per year in cost reductions. These cost reductions are expected to be fully realised by FY29.

Management also confirmed FY26 EBITS guidance in the range of $480 million to $490 million.

For FY27, management then expects EBITS to be at least equivalent to FY26 while the company continues to rebalance customer inventory levels in China and the United States.

Investors have been thrilled with the company’s developments over the past three months. The renewed confidence has helped push the shares higher and higher.

What do brokers tip next? Can the shares keep climbing higher?

If broker sentiment is anything to go by, we could see a lot more from Treasury Wine Estates shares this year.

Market Index shows a buy consensus for the shares. And the average $5.20 target price implies a potential 11% upside, at the time of writing.

TradingView data shows that some are even more bullish. Out of 15 analysts, seven have a buy or strong buy rating. Another eight rate the ASX wine stock as a hold.

The average $5.34 target price implies a potential 15% upside ahead, at the time of writing. Meanwhile, the maximum $6.50 target price implies that the shares have the potential to jump another 40% higher over the next 12 months.

The post Treasury Wine Estates shares rebound 39% from 12-year low: Can they keep going? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• These ASX shares could be top buys for FY27

Motley Fool contributor Samantha Menzies 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 Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ANZ Group Holdings Ltd (ASX: ANZ) shares are up around 0.3% in early morning trade on Wednesday, and changing hands for $36.21 a piece.

After a tough start to the year, the bank shares are down around 0.5% for the year-to-date, but they’re still nearly 20% higher than 12 months ago.

Despite ongoing global volatility, interest rate uncertainty, and a slowdown in lending, the banking giant’s shares are now up 2.3% for the year-to-date and 39% above their trading levels this time last year. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 2% for the year-to-date, and roughly 3% higher than 12 months ago.

Brokers are relatively optimistic about ANZ shares for FY27. TradingView data shows that 7 of 16 analysts have a hold rating on the stock. Another six have a buy or strong buy rating while three have a sell or strong sell rating.

The average $34.91 target price, however, implies a potential 4% downside at the time of writing.

Regardless of where ANZ shares will be in 12 months time, there are a few other reasons I think the ASX bank shares are a screaming buy right now.

Here are three of them

1. Cost saving initiatives are working

As part of the bank’s half-year FY26 financial update, it confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY26.

ANZ has made significant progress reducing costs and simplifying operations, improving its cost-to-income ratio under its ANZ 2030 strategy. 

ANZ’s 2030 cost-saving strategy focuses on simplifying operations, eliminating duplication, and heavily reducing its physical and technological footprint. This includes job cuts, and integration of Suncorp Bank.

2. Earnings are stable and cash flow is growing 

As one of Australia’s major four banks, ANZ is generally considered to have stable earnings and predictable cash flow. The bank has a strong deposit base and a diversified portfolio that means it has defensive qualities.

In early May, the bank reported a 70% jump in its cash profit for the first half of FY26. Statutory profit was also up 62%, operating income was up 3%, and the bank’s operating expenses were 22% lower.

The news beat expectations, delighted investors and instilled some renewed confidence into the stock. ANZ shares spiked higher following the announcement.

The update also followed ANZ’s impressive first-quarter cash profit in February. At the time, it revealed $1.94 billion, up a huge 75% from the second-half average of FY25. Operating income was up 4% and cash return on tangible equity climbed 11.7% over the quarter.

3. The bank pays a great passive income

The bank’s strong performance means it is able to make a reliable and regular dividend payment to shareholders every six months, payable in July and December. 

It also offers both a dividend reinvestment plan (DRP) and a bonus option plan (BOP) as alternatives to receiving cash dividends on ANZ ordinary shares.

Earlier this month ANZ paid its shareholders an 83-cent per share interim dividend payment, franked at 75%. At the time of writing, this translates to a forward dividend yield of around 4.6%.

The 83-cent dividend is the same payout that investors have been receiving every six months since July 2024. Although the latest payout received an additional 5% franking (previously 70%).

Forecasts suggest that ANZ could pay an annual dividend of $1.66 in FY26, and the same again in FY27. At the time of writing that translates to a forward dividend yield of 4.6% for each year.

That’s a decent passive income. It also puts ANZ at the front of the pack with the highest dividend yield offering among the big 4 major banks. 

The post 3 reasons why ANZ shares are a screaming buy right now appeared first on The Motley Fool Australia.

More reading

• What are experts tipping for the big four bank shares in the back half of 2026?
• How much passive income can I earn off a $50,000 portfolio?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Here’s the earnings forecast out to 2027 for ANZ shares
• Here’s the dividend forecast out to 2027 for ANZ shares

Motley Fool contributor Samantha Menzies 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.

Commonwealth Bank of Australia (ASX: CBA) shares have historically been viewed as a top pick for passive income due to the stability and growth they have delivered to investors.

The banking landscape has changed significantly over the past 10 years, with increasing numbers of borrowers using mortgage brokers and a rising challenge from Macquarie Group Ltd (ASX: MQG).

On the mortgage broker challenger, CBA has a large majority of mortgage flow of borrowers coming through proprietary channels. In other words, it doesn’t rely on mortgage brokers as much compared to other banks like Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

However, Macquarie could put a brake on Commonwealth Bank’s earnings growth, along with the Federal budget taxation changes. Let’s see what it could take to earn $10,000 of passive income from the ASX bank share in FY27.

Projected dividend for FY27

The independent forecast on Commsec suggests the major ASX bank share could hike its annual dividend per CBA share by 1% in FY27 compared to the projected payout for FY26. That possible annual payment could be $5.15 per share for FY27.

At the time of writing, that translates into a grossed-up dividend yield of 4.3%, including franking credits, or 3% excluding the franking credits.

If I were a shareholder, any growth would be better than none. However, 1% growth isn’t even enough to offset typical inflation in a normal year. Of course, a forecast is not guaranteed to come true. Hopefully the ASX bank share can deliver a better outcome than what’s currently projected.

How many CBA shares do I need to make $10,000 of passive income?

Long-term shareholders can be happy with the upcoming potential dividends because they still represent significantly larger payouts than 20 or 30 years ago.

If CBA does indeed pay an annual dividend per share of $5.15 in FY27, then an investor would need to own 1,942 CBA shares to receive $10,000 of passive income. If we’re including franking credits as part of the income goal, then an investor would only need to own 1,360 CBA shares to receive the desired level of passive income.

Is this a good time to buy into Commonwealth Bank? Expert analysts don’t think so. According to Commsec, currently there are 14 sell ratings, two hold ratings and no buy ratings on the ASX bank share. There are a lot of other ASX shares that could be better buys.

The post How many CBA shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

More reading

• What are experts tipping for the big four bank shares in the back half of 2026?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Are CBA shares still worth buying for the long term?
• How to build a successful ASX dividend portfolio
• What did the market look like 10 years ago? Here’s what’s changed for the ASX 200

Motley Fool contributor Tristan Harrison 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.

Cochlear Ltd (ASX: COH) shares showed further signs of stabilising on Tuesday.

The hearing implant giant climbed 1.6% to $123.20, extending its gain over the past month to 16%.

That’s an impressive rebound after one of the ASX’s most dramatic share price collapses this year.

But let’s keep things in perspective. Despite the recent recovery, Cochlear shares are still down around 53% in 2026 and have shed almost 59% over the past 12 months.

So, is this the start of a genuine comeback, or merely a relief rally?

What went wrong?

April was one of the darkest months in Cochlear’s history.

The healthcare company shocked investors when it revealed demand for hearing implants across developed markets had weakened more than expected. At the same time, conflict in the Middle East disrupted shipments and led to order cancellations.

Management responded by dramatically lowering its profit expectations. Instead of forecasting underlying net profit of between $435 million and $460 million for FY26, Cochlear slashed guidance to just $290 million to $330 million.

Investors didn’t hang around to hear the rest. Cochlear shares plunged more than 40% in a single session as the market questioned whether one of the ASX’s most reliable growth stories had hit a wall.

Since then, investors have been asking one question: is this a temporary stumble or something more serious?

Why the investment case remains intact

Despite the earnings shock, Cochlear’s competitive position hasn’t fundamentally changed.

The company still commands roughly half of the global cochlear implant market, making it the clear industry leader. That position has been built through decades of product innovation, clinical research, and strong relationships with hospitals and surgeons around the world.

Those competitive advantages are exceptionally difficult for new entrants to replicate.

The long-term growth opportunity for Cochlear shares also remains compelling.

More than six million people across developed markets are estimated to be eligible for cochlear implants, yet only around 3% have received one. That leaves a substantial untapped market as diagnosis rates improve, awareness grows, and technology continues to advance.

In other words, the company’s long-term runway may be just as attractive today as it was before April’s profit warning.

What do the experts think?

Broker sentiment suggests caution rather than outright pessimism.

According to TradingView data, hold remains the dominant recommendation among analysts.

The average 12-month price target sits at $127.64, implying only around 4% upside from current levels. That suggests many brokers believe the recent rebound of Cochlear shares has already captured much of the near-term recovery.

Not everyone agrees. Six of the 18 analysts covering Cochlear have either a buy or strong buy recommendation, with the most optimistic forecasting the shares could rise another 38% over the next year.

On the other hand, two analysts recommend selling. The lowest target price stands at $100, implying downside of roughly 19%.

The post Cochlear shares have bounced 16%. Should you buy, hold, or sell now? appeared first on The Motley Fool Australia.

More reading

• 10 fantastic ASX shares to buy for FY27
• Cochlear shares are slipping again. Is the comeback already over?
• Cochlear shares are flying. Is this just the start?
• Here are the top 10 ASX 200 shares today
• ASX healthcare shares have jumped 21% since June. Can the recovery continue?

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

The Evolution Mining Ltd (ASX: EVN) share price is in focus today after the gold and copper miner delivered record FY26 cash flow of $1,389 million and maintained a net cash position, while meeting its FY26 group production and cost guidance.

What did Evolution Mining report?

• FY26 gold production: 715,000 ounces; copper production: 66,000 tonnes
• All-in sustaining cost (AISC) in FY26: $1,717/oz, a sector-leading result
• June quarter production: 180,000 oz gold, 19,000 t copper at AISC $1,706/oz (improved 23% quarter-on-quarter)
• Record operating mine cash flow: $3,394 million; net mine cash flow: $2,079 million
• Group cash balance: $1,347 million, with no debt repayments due until FY29
• Record interim dividend: $406 million paid to shareholders

What else do investors need to know?

Operational highlights this year included Ernest Henry returning to full production after weather disruptions and the successful ramp-up of the Mungari mill. All high-return organic growth projects, such as Cowal Open Pit Continuation and the Northparkes E22 development, remain on schedule and within budget.

Importantly, Evolution Mining is now fully unhedged, giving it potential upside exposure to gold and copper prices. The company’s safety performance also remained steady, with a low total recordable injury frequency rate of 5.9 as at 30 June 2026.

What did Evolution Mining management say?

Managing Director and Chief Executive Officer Lawrie Conway said:

FY26 continued to build on the improved consistent performance of the past couple of years, meeting Group production and cost guidance. For the full year, we produced 715koz of gold and 66kt of copper at a sector-leading AISC of $1,717/oz. The June quarter delivered 180koz of gold and 19kt of copper at an AISC of $1,706/oz which improved 23%. We delivered record FY26 Group cash flow of $1,389M at a high margin of $1,958/oz. We are now fully unhedged and in a net cash position with a cash balance of $1,347M. All high-return organic growth projects remain on schedule and budget.

What’s next for Evolution Mining?

FY27 guidance will be formally released on 19 August 2026. Early indications suggest no major changes to production capacity, except for the planned closure of Mt Rawdon. Inflation pressures are expected to lift all-in sustaining costs by roughly $150–$160/oz in FY27, and mine development investment is set to increase to sustain operational reliability and progress key projects at Northparkes, Cowal, and Ernest Henry.

Exploration spend is also flagged to rise in FY27, as the company looks to build on success across its key gold and copper assets and evaluate promising greenfield opportunities. The focus will remain on reliable delivery, margin protection, and prudent capital investment.

Evolution Mining share price snapshot

Over the past 12 months, Evolution Mining shares have risen 53%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Evolution Mining posts record FY26 cash flow appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
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• 5 things to watch on the ASX 200 on Tuesday

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.

Artificial intelligence and, by extension, cloud computing and data centres have been perhaps the biggest investment theme globally over the past year.

Companies such as Nvidia Corp (NASDAQ: NVDA), Micron Technology Inc (NASDAQ: MU) and SpaceX (NASDAQ: SPCX) have attracted huge investor interest as the infrastructure demands of the AI industry continue to grow.

Not all providers created equal

Macquarie has this week issued a research note to clients, which argues that simple ownership of GPUs (graphics processing units) is not enough, but that it has to be paired with the ability to “convert capital, power and installed capacity into useful compute”.

They add:

In our view, useful compute per MW per dollar is the most important metric for assessing Neocloud quality. Neocloud customers buy useful compute output, not machine access. Two operators using the same GPU hardware can deliver materially different performance, utilisation, latency and cost outcomes depending on network architecture, software stack, reliability, batching, caching and customer mix. As the industry matures, durable premiums will accrue to operators that can prove better delivered compute.

To clarify, a neocloud is a specialised cloud provider built to specifically support AI and machine learning workloads.

Which ASX tech companies look set to benefit?

When it comes to the Australian market, Macquarie’s top sector picks for companies that can support neoclouds are Megaport Ltd (ASX: MP1) and Nextdc Ltd (ASX: NXT).

Macquarie said in its note to clients that in Australia, neocloud entrants like Firmus and Sharon AI “are competing for the same scarce pool of data centre capacity, adding another source of demand to a market that was already supply constrained”.

They added:

The relevance for NXT is straightforward: neoclouds are being forced to secure data centre capacity ahead of GPU deployment, with NVIDIA supply of GPUs contingent on signing upfront data centre contracts. This pulls demand forward into an already constrained market. NXT’s agreement with Sharon AI for 50MW of capacity at its M3 site is an example of this.

Macquarie has a price target of $18.30 on Nextdc shares compared to $13.07 currently.

With regard to Megaport, Macquarie said the company “already has the diversified Enterprise customer base and characteristics that drive quality for Neocloud operators”.

They added:

These characteristics drive lower operating risk (MP1 signs contracts before capex), a net cash position, and higher quality business and customer mix.

Macquarie said Megaport’s Latitude business division was also diversified well-beyond just AI, supporting a “highly diverse mix of non-AI workloads, including web hosting, game servers, large relational databases, streaming applications, and traditional enterprise IT migrations that require high performance without virtualisation overhead”.

Macquarie has a price target of $27.80 on Megaport shares compared to $19.90 currently.

The post Which ASX tech companies does Macquarie like in the surging cloud computing sector? appeared first on The Motley Fool Australia.

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The Rio Tinto Ltd (ASX: RIO) share price is in focus today after the mining giant reported copper equivalent production rose 3% year-on-year for the first half of 2026, with iron ore and lithium output also trending higher.

What did Rio Tinto report?

• First-half 2026 copper equivalent (CuEq) production up 3% year on year
• Oyu Tolgoi copper mine delivered 31% higher copper output, supporting copper C1 net unit cost reductions
• Pilbara iron ore sales in Q2 at 85.3 Mt, up 7% on Q2 2025; H1 iron ore sales totalled 157.7 Mt (+5% YoY)
• Bauxite production recovered in Q2, but H1 fell 7% YoY to 28.5 Mt
• Lithium carbonate equivalent (LCE) production jumped 20% in Q2 and 53% in H1 to 27.3 kt
• 2026 production and cost guidance across key commodities left unchanged

What else do investors need to know?

In the first half of 2026, Rio Tinto saw strong contributions across most commodities, with productivity programs helping lift Pilbara iron ore’s output to the highest first half levels since 2018. The ramp up of Oyu Tolgoi underground operations supported significant growth in copper output, while new lithium projects—Sal de Vida and Fénix 1B—delivered first production ahead of plan.

Production guidance for iron ore, copper, aluminium, and lithium remains unchanged for the full year. The group flagged ongoing resilience despite global supply chain challenges and only “limited” operational impacts from Middle East disruptions. Notably, Rio’s copper portfolio benefited from strong pricing trends, while higher diesel costs modestly raised Pilbara iron ore cash costs.

Large-scale expansion projects including Simandou iron ore, Canadian AP60 aluminium smelter, and Rincon lithium in Argentina are tracking milestones, with some nearing completion. Free cash flow reporting changes and the group’s commitment to capital discipline were also highlighted.

What did Rio Tinto management say?

Rio Tinto Chief Executive Simon Trott commented:

We are delivering growth as we drive performance across the group, with copper equivalent production up 3 per cent in the first half. Our scale, geographical diversification and sophisticated supply chains continue to underpin our resilience and strong operational performance despite ongoing geopolitical uncertainty throughout the period

What’s next for Rio Tinto?

Management reaffirmed full-year production and cost guidance across core businesses. In the Pilbara, ongoing productivity investments are expected to underpin stable iron ore shipments, though some port outload capacity reductions are flagged as capital works continue. Copper growth is set to accelerate as Oyu Tolgoi ramps up and work advances at Resolution (US) and Winu (WA) projects.

Lithium remains a strategic focus, with expansion in Argentina proceeding and inaugural production from key assets achieved ahead of expectations. The Simandou iron ore development and Canada’s AP60 aluminium project are major near-term catalysts. Management remains upbeat about long-term market demand for Rio Tinto’s portfolio of future-facing minerals.

Rio Tinto share price snapshot

Over the past 12 months, Rio Tinto shares have risen 48%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

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The post Rio Tinto: 3% production growth and strong lithium output in H1 2026 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.