Author: openjargon

Megaport Ltd (ASX: MP1) is back on my radar after a pretty wild few months.

The S&P/ASX 200 Index (ASX: XJO) tech stock is up around 44% in 2026, but that figure hides just how much the share price has fluctuated.

Megaport traded below $7 in April, then surged past $20 and eventually hit a 52-week high of $22.98 last month. The shares have since fallen back to $16.93, although they are up 3.74% today.

I think that pullback has made the stock much more interesting.

Here’s why I think Megaport shares could still have much further to go.

FY27 could be a big one

Megaport’s FY26 result was strong, but it’s the outlook for FY27 that makes me particularly bullish.

Revenue increased 37% to $312.2 million, while EBITDA rose 24% to $77.1 million.

Management is now targeting FY27 revenue of between $620 million and $730 million, along with an EBITDA margin of 38% to 40%.

That would be a big jump from FY26, helped by the Latitude.sh acquisition and the expansion of Megaport’s compute business alongside its existing network operations.

There is also plenty of revenue already coming through the door.

Megaport has announced 3 major contracts worth a combined $506 million, which are expected to add around $129 million in annual recurring revenue (ARR).

There’s still plenty to deliver over the next 12 months, but I think those contract wins make the FY27 growth outlook very exciting.

Brokers are bullish

The broker outlook is another reason I think the recent pullback looks enticing.

TipRanks currently shows 9 buy ratings and no holds or sells among the ranked analysts covering the stock.

The average 12-month price target is $24.99, which is almost 50% above the current share price.

JPMorgan is the most bullish with a $28 target, while Macquarie is at $27.80, UBS is at $26.40, and Jefferies is at $26.

Morgans, Morgan Stanley, and RBC Capital all have $25 targets.

Even the lowest forecasts remain comfortably above today’s price, with Citi at $22.10 and Ord Minnett at $22.

Why it’s back on my buy list

What I like most here is that the share price has pulled back while the outlook for the business has improved.

Megaport shares are now more than 25% below their 52-week high, despite stronger FY27 guidance and several large contracts already secured.

Yes, there are still risks around spending and execution, but I think the current price looks much more attractive.

Add in the strong growth, AI exposure, and 50% broker upside, and I think Megaport is a bargain at these levels.

The post A 50% upside? This ASX 200 tech stock is back on my buy list appeared first on The Motley Fool Australia.

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• Morgans names 3 ASX tech stocks to buy
• Megaport shares just plunged 20%. Is this a buying opportunity?
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Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. 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 JPMorgan Chase, Jefferies Financial Group, Macquarie Group, and Megaport. 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.

S&P/ASX All Ords Index (ASX: XAO) shares are up 0.01% to 9,199.6 points on Friday.

With earnings season over, brokers have been updating their ratings and 12-month price targets on hundreds of companies.

The following ASX shares are among those that received upgrades based on their latest financial results.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $4.80, up 0.8% today.

Over the past month, this ASX telco share has fallen 6%.

Citi upgraded Telstra shares to a buy recommendation with a 12-month price target of $5.25.

This implies a potential 9% upside ahead.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $11.62, up 3.2% today.

Over the past month, this ASX uranium share has ripped 21%.

Macquarie upgraded Paladin Energy shares to a buy rating on Wednesday.

The broker raised its 12-month price target from $12.95 to $13.85.

This implies a potential 19% upside ahead.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is $8.62, up 0.7% today.

Over the past month, this ASX financial share has fallen 14%.

JP Morgan upgraded Magellan shares to a hold rating this week.

The broker lifted its 12-month price target from $9 to $9.80.

This suggest a potential 13% upside ahead.

Centuria Capital Group (ASX: CNI)

The Centuria Capital Group share price is $1.26, up 1.6% today.

Over the past month, this ASX real estate investment trust (REIT) has slumped 16%.

MA Financial Group upgraded Centuria Capital Group shares to a buy call on Wednesday.

The broker lowered its 12-month price target from $2.18 to $1.83.

This indicates capital gains of 45% over the next year. 

IGO Ltd (ASX: IGO)

The IGO share price is $8.08, down 4% today.

Over the past month, this ASX lithium share has jumped 14%.

Goldman Sachs upgraded IGO shares to a buy rating yesterday.

The broker lifted its 12-month price target from $8.10 to $9.50.

This suggests potential capital growth of 17% over the next year. 

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup Corporation share price is $11.55, up 0.2% today.

Over the past month, this ASX industrials share has declined 13%.

Morgan Stanley upgraded Smartgroup shares to a buy rating yesterday.

The broker raised its 12-month price target from $11 to $13.

This implies a potential 13% upside ahead.

Centuria Industrial REIT (ASX: CIP)

The Centuria Industrial REIT share price is $2.94, down 0.5% today.

Over the past month, this ASX REIT has fallen 3%.

Morgans upgraded Centuria Industrial REIT shares to a buy call with a $3.25 target.

This suggest a potential 11% upside ahead.

South32 Ltd (ASX: S32)

The South32 share price is $5.22, up 0.1% today.

Over the past month, this ASX mining share has leapt 11%.

RBC Capital upgraded South32 shares to a buy recommendation this week.

The broker increased its 12-month price target from $5.30 to $5.50.

This implies a potential 5% upside ahead.

The post 8 ASX shares upgraded by the professionals post-results this week appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, JPMorgan Chase, Jefferies Financial Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Ma Financial Group, Macquarie Group, and Smartgroup. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Rio Tinto Ltd (ASX: RIO) has had a pretty impressive 2026 so far.

The shares are up around 20% since the start of the year and more than 50% over the past 12 months.

The shares climbed as high as $195.84 earlier this year before falling back towards $160 in late July. Since then, the stock has worked its way higher again and is trading at $175.65 on Friday, down 0.82%.

So, do Rio Tinto shares still look like good value?

The shares aren’t exactly cheap

I don’t think the shares look especially cheap at current levels, but I also wouldn’t call them expensive.

Consensus forecasts point to earnings per share (EPS) of around $12.07 in FY26 and $12.04 in FY27. At today’s share price, that puts Rio Tinto on roughly 14.5 times forecast earnings.

There isn’t much growth in those numbers, although that is hardly unusual with a miner. Earnings can move around a lot from year to year depending on commodity prices.

The latest half-year result was also pretty strong.

Revenue rose 15% to US$31 billion, while underlying EBITDA increased 28% to US$14.8 billion. Underlying earnings climbed 43% to US$6.85 billion and operating cash flow rose 75% to US$9.8 billion.

That also allowed Rio Tinto to lift its interim dividend by 43% to US$2.11 per share.

There’s more than just iron ore

Iron ore is still the biggest part of Rio Tinto’s business, so earnings will always be sensitive to commodity prices and demand from China.

But the company is gradually becoming less reliant on it.

Copper, aluminium and lithium contributed more than half of underlying EBITDA in the first-half, while copper production from Oyu Tolgoi jumped 31%.

That gives Rio Tinto an interesting growth story, especially with copper demand expected to remain strong over the longer term.

And there is also more production still to come. Oyu Tolgoi continues to ramp up, while the Simandou iron ore project in Guinea is another major development that could add to volumes over the next few years.

What do brokers think?

This is where things get a bit more mixed.

TipRanks shows an average 12-month price target of $174.28 across 10 analysts, which is almost exactly where the shares trade today.

JPMorgan is the most bullish with a $207 target, while Ord Minnett and Jefferies are both at $187. Goldman Sachs has a target of $181.90 and Macquarie is at $180.

At the other end, Morgan Stanley has a ‘sell’ rating and $150 target, while RBC Capital is even more cautious at $143. Citi is at $171 and UBS at $177.

I think Rio Tinto still looks reasonably priced, but I wouldn’t be rushing in after a 20% rise this year. I’d rather wait for another pullback below $150 before buying around these levels.

The post Up 20% this year, are Rio Tinto shares still good value? appeared first on The Motley Fool Australia.

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• Is it a great time to buy Rio Tinto shares?
• Buy, hold, sell: Rio Tinto, PLS Group, BHP shares

JPMorgan Chase is an advertising partner of Motley Fool Money. 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 Goldman Sachs Group and JPMorgan Chase. 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.

My portfolio got an absolute thumping yesterday.

A shellacking.

I’m pretty sure it was the biggest percentage and dollar drop I’ve ever suffered in a single day.

The reason?

One of my larger shareholdings, Corporate Travel Management Ltd (ASX: CTD), resumed trading… more than a year after the shares were suspended from trade because the company hadn’t lodged its accounts.

The reason for that? CTM had uncovered systemic overcharging in parts of its business, and the more it looked, the more it found. The company spent that year getting to the bottom of the problem and then, crucially, trying to work out if it could repay its customers without going broke.

It thinks it can. It lodged its accounts. And the company’s shares resumed trading.

And then? The shares fell 85%. ‘Ouch’ doesn’t even begin to describe it.

The thing is, yesterday’s news was actually better than many had feared. Some speculated that it would never trade again. Others thought the fall might have been 90% or 95%. Or more.

CTM had sporadically updated shareholders on its progress, too, so we all knew what was happening. The only unknown was when the shares would start trading and how bad the carnage would be.

So, how do I feel?

Well, poorer, obviously.

And angry at the people inside the company who knew, or should have known, what was going on. And especially at those who (I should say ‘allegedly’ here, just to be safe) knowingly did the wrong thing.

Here’s the thing, though: No-one outside the company knew it was happening. Even the company’s previous auditors had signed off on the accounts, having presumably done the work of making sure everything was above board.

So, yes, I’m poorer and angry. But I’m also philosophical.

Life is unpredictable. Sometimes, you just get blindsided. That’s the nature of investing.

No, it’s not welcome. But it’s unavoidable. Stuff, to clean up the phrase a little, happens.

The other thing?

The collapse in CTM’s share price is precisely why good investing habits matter.

I’m diversified. By company, industry, currency and geography.

I have a long term perspective. Yesterday sucked. I suspect I’ll remember it in 5 or 10 years’ time. But I also suspect that, after that decade of compounding, that scar will have faded meaningfully – both financially and emotionally.

I expect bad news sometimes. Not because it’s welcome, but because life is messy. I don’t expect every company in my portfolio to do well. Sometimes, it’ll be because I made a mistake. Sometimes because a competitor, customer or supplier makes life harder for one of my investments. Sometimes there’ll just be ‘unwelcome misadventure’, to put it mildly.

We succeed as investors not by avoiding losing investments. That’s not possible, unless you stay in cash… and have you seen inflation, lately?

No, we succeed by doing the right things, which cushion the blows when the bad news comes, and crucially also letting the good news drive our compounding over long periods of time.

In hindsight, I can tell you precisely which companies I should have bought, and which I should have avoided. I can tell you how many shares I should have bought, and at what prices.

But without that, and without a working crystal ball, my job – and yours – is to think in probabilities and expected returns.

It is to assemble a portfolio of companies that we think are likely to deliver superior performance over the long term, knowing that we’ll be wrong sometimes, but aiming to be right more often – and for the winners to make more than the losers lose.

There is no successful investor in history who hasn’t made losing investments. It’s not how investing works.

They succeed despite those losses.

Could I have foreseen this? I don’t know, but I don’t think so. No-one outside the company knew – and presumably relatively few inside it. Even the auditors didn’t know (or if they did, they didn’t say). So how could we?

Could I avoid the next one? Sure, if I never invested again. But that would be incredibly counterproductive.

So what can I – we – take from the painful experience?

I think a reminder that investing is an imprecise art, full of uncertainty. 

But that it’s also incredibly worthwhile, overall, and these sorts of things, while gut-wrenching, are just the storms we have to sometimes sail through to reach our destination.

Was my CTM investment too large, as a proportion of my portfolio? It’s easy to say yes, but if I couldn’t possibly have predicted the alleged wrongdoing, isn’t that just hindsight speaking?

Yes… and no. The very reality of that uncertainty perhaps should have led me to have less of my portfolio in a single company. It’s something I’ll spend some time dwelling on, and might make some (other) changes in my portfolio in due course.

(There’s a personal wrinkle for me, in that I’m not allowed to recommend a company as a ‘Buy’ for our members and sell down if my position has become too large, so it’s probably moot in my particular case… but the principle still holds.)

But – and here’s the really important thing – as painful as it was, it has not dimmed my optimism for long-term investing one iota.

I share the Vanguard Index chart regularly in this space. It shows the progress of the ASX (and other markets and assets) over a thirty year period. It shows booms and crashes, economic greed and fear.

What it doesn’t show – but is inherent in the results – is that companies were born and died during that time. They were added to and removed from share market indices.

It doesn’t show the companies that lost 30%, 50%, 75% or yes, 85%, during that period. Some recovered. Some never did.

It shows the overall result. That despite those temporary and permanent losses, huge amounts of value were created, overall.

I wish I could avoid every loss, and grab every gain. I also wish for a unicorn and world peace.

In the real world, I know that this is a stumble for the value of one company in my portfolio. And I fully expect more (unfortunately).

I also fully expect that my portfolio will grow meaningfully over the next few decades, despite those stumbles. Ditto for the market as a whole.

Sailing through a storm isn’t fun. But getting to the other side, and to your destination, makes bearing the storms worthwhile.

I’m keeping my eyes firmly on the horizon. I reckon that’s the lesson of history, and the right approach for all investors.

Fool on!

The post Why I’m still smiling after losing 85% appeared first on The Motley Fool Australia.

More reading

• Warning: Corporate Travel shares have crashed 80%. What on earth just happened?
• Corporate Travel Management shares resume trading after FY26 report
• Corporate Travel Management swings to profit as earnings jump in FY26
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• Corporate Travel Management secures new funding and updates on FY25 and FY26 earnings

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

Shares in Gina-Rinehart-backed G50 Corp Ltd (ASX: G50) are trading about 50% below their highs over the past year, but the team at Morgans believes the shares are ripe for a rerating.

The broker has issued a research note to its clients with a speculative buy recommendation on the shares and a very bullish share price target, which I’ll get to shortly.

What’s so special about this ASX explorer?

One of the reasons for their confidence in the exploration company is the backing of iron ore magnate Ms Rinehart, whose company Hancock Prospecting invested $7.95 million into G50 as part of a recent share placement, emerging with a 5.4% stake.

The $26.25 million which was raised at 59.5 cents per share – the shares are currently changing hands for 49.5 cents – is to be used to accelerate exploration at the company’s Golconda Project in Arizona and its White Caps Project in Nevada.

The work will include further drilling, geological studies, gallium test work, and early permitting activities at Golconda.

Chair Ian Davies said regarding the placement:

We’re pleased to welcome Hancock Prospecting to the register as a cornerstone investor. Hancock is one of Australia’s most respected resources investors, and their decision to back a company whose assets sit entirely in the United States, across both precious metals and strategic minerals, is a meaningful endorsement of the work Mark and the team have done at Golconda and White Caps. The board’s focus is now on deploying this capital with discipline against the program we’ve set out and on the drilling and metallurgical test work that will ultimately determine the value of both projects.

Shares looking cheap, broker says

Morgans said recent drilling results had extended the strike length at Golconda to 1.8km, and there had also been a high-grade gold discovery at White Caps.

They added that metallurgical test work had confirmed the potential to generate a gallium-rich precious metals concentrate at Golconda through conventional processing methods.

The broker added:

We view Hancock’s investment as a strong endorsement of the G50 story, in particular its strategy to unlock and monetise its Golconda gallium. Hancock has taken a selective approach in recent years, deploying capital offshore and across the broader critical minerals thematic, taking substantial positions in names such as St George Mining, Vulcan Energy and MP Materials. We think Hancock’s due diligence of the project, capacity to support further funding and diversification into North America are all very supportive of the factors which differentiate G50 from other precious metals exposures.

Morgans said G50 was well-funded for 18 to 24 months. The broker has a price target on G50 shares of $1.94.

The company is valued at $118.4 million.

The post This Gina Rinehart-backed ASX explorer could rise almost 300%, Morgans says appeared first on The Motley Fool Australia.

More reading

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• Why I’m still smiling after losing 85%
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• Down another 18%: Why I’d buy WiseTech shares in the dip

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 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.

Mesoblast Ltd (ASX: MSB) shares have been sluggish in 2026, falling around 12% so far. However, the ASX biotech stock is showing signs of life, with shares up around 1% to $2.40 in early Friday afternoon trading. This is taking their monthly gain to 15% and their 12-month return to 25%.

Could another leg higher be coming?

Ryoncil is turning Mesoblast commercial

Mesoblast develops and commercialises allogeneic cellular medicines for complex diseases. The big change for the ASX biotech stock is that it is no longer simply a clinical-stage biotech, with its Ryoncil product now approved in the US and generating meaningful revenue.

Ryoncil treats children with steroid-refractory acute graft-versus-host disease, a serious complication that can occur after a stem cell transplant. The product generated US$115 million in net revenue during FY2026, its first full year following launch, with fourth-quarter revenue reaching US$36 million, up 20% from the previous quarter.

Mesoblast is now working to expand Ryoncil into adults with the same condition, potentially opening up a market around three times larger than the paediatric opportunity. The company has commenced its registration trial and is planning a broad US clinical program.

There are further opportunities in the pipeline. Mesoblast is developing Ryoncil for Duchenne muscular dystrophy, with the US Food and Drug Administration having cleared the company to proceed with a registrational trial.

More catalysts in the making

The company also has potentially significant catalysts beyond Ryoncil. Its rexlemestrocel-L therapy is being developed for chronic lower back pain. The opportunity is what makes this trial particularly interesting for the ASX biotech stock.

The company estimates that chronic lower back pain associated with inflammation and degenerative disc disease affects more than 7 million people in the US. Even single-digit market penetration could potentially generate peak annual revenue of more than US$10 billion, according to Mesoblast.

However, investors will have to wait. Top-line results are expected around the middle of 2027, after the final patient completes 12 months of follow-up.

Brokers see plenty more upside

That pipeline is helping fuel optimism among brokers.

TradingView data shows all six analysts covering the ASX biotech stock rate it a strong buy. Their average price target of $4.27 implies potential upside of approximately 78% from $2.40. The most bullish forecast is $5.46, representing around 128% upside, while the most pessimistic is $2.90.

Bell Potter is particularly bullish. The broker retained its buy rating and $4.45 price target following Mesoblast’s latest results. It expects continued double-digit growth from Ryoncil, alongside major potential catalysts from rexlemestrocel-L in heart failure and chronic lower back pain.

At $4.45, Bell Potter’s price target implies approximately 85% upside from the current $2.40 share price.

For investors comfortable with biotech risk, Mesoblast offers an increasingly interesting proposition: a commercial product generating meaningful revenue, an expanding pipeline and significant potential upside if its key clinical programs continue to progress.

The post Why brokers see 85% upside for this ASX biotech stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in Mesoblast. 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.

WiseTech Global Ltd (ASX: WTC) shares have climbed into the green in Friday lunchtime trade.

At the time of writing, the ASX tech shares are up around 1%, and are changing hands for $37.02 a piece.

Today’s increase is good news for investors, but it barely makes a dent in the huge amount of losses shed so far this year.

The shares are now down 46% year to date and around 61% lower than a year ago.

What happened to WiseTech shares?

WiseTech shares were smashed by a tech sector-wide sell-off and an investor rotation to more stable assets amid global volatility earlier this year. 

The company’s shares have also come under pressure this year following a series of updates and media reports surrounding investigations into founder Richard White by the Australian Federal Police and recent news that the Australian Competition and Consumer Commission (ACCC) executed a search warrant on the company 

ASIC and the AFP also searched WiseTech Global’s headquarters in late October 2025.

More recently, investors rotated away from the stock after it posted its FY26 results late last month.

WiseTech reported that it has raised its annual earnings and flagged growth for FY27 in line with analysts’ expectations.

The company reported a 46% increase in EBITDA to US$558.4 million for the 12 months through to the 30th of June. The result was in line with the company’s $550 million to $585 million guidance range but short of market forecasts of $569.5 million.

Investors weren’t impressed and quickly sold up their shares. WiseTech shares have now tumbled over 18% since it posted its results.

Why I’d buy WiseTech shares in the dip

It’s been headwind after headwind for the tech company this year, and investor confidence has dwindled.

But WiseTech has a strong competitive advantage in the global logistics industry and strong growth prospects. 

The company’s CargoWise platform is deeply embedded in the global logistics industry. It is difficult to replace, and this gives WiseTech a strong competitive advantage in the global logistics industry.

If global trade volumes keep expanding and supply chains become more digital, WiseTech could become a dominant software provider in the logistics industry.

CEO Zubin Appoo has also previously commented that AI is actually strengthening the company’s advantage in the market. Rather than replacing the need for WiseTech’s subscription-based software, he said the company’s AI capabilities work to unlock efficiency gains and add value to customers. This is another strong tailwind for the business.

Let’s also remember that the company’s FY26 results came in line with its guidance figures, and a 46% increase in EBITDA shows that the business is performing well.

After the latest share price sell-off, the shares look significantly undervalued to me.

And it looks like brokers are also confident that WiseTech could still be a turnaround story.

What do brokers tip for the ASX tech stock next?

Market Index shows that all brokers are very bullish on the ASX tech stock and hold a strong buy rating. The average $61.19 target price implies a potential 66% upside over the next 12 months, at the time of writing. 

Most interestingly, this is a significant increase from just a week ago. Immediately following WiseTech’s results announcement, brokers were more divided, and the average target price was much lower at $54.71.

TradingView data also shows that brokers are much more positive following the company’s results announcement. Of 17 analysts, 13 have a buy/strong buy rating.

The average target price is largely unchanged, at $57.19. This implies a potential 56% upside over the next 12 months, at the time of writing.

If forecasts come to fruition, it looks like now is a great time to buy the shares in the dip while they’re still trading for cheap.

The post Down another 18%: Why I’d buy WiseTech shares in the dip appeared first on The Motley Fool Australia.

More reading

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• WiseTech shares are turning red again. Is the rally over?
• Why I think Zip and WiseTech shares could be buys in September

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

NEXTDC Ltd (ASX: NXT) has become one of the clearest ways for Australian investors to gain exposure to the artificial intelligence (AI) boom.

I think the opportunity could become much larger from here.

For investors comfortable with the risks that come with such rapid expansion, NEXTDC would be high on my ASX AI buy list.

AI needs somewhere to run

The investment case starts with a simple physical constraint.

AI requires enormous amounts of computing power, and that infrastructure needs secure buildings, huge amounts of electricity, sophisticated cooling, and reliable connections to networks and cloud platforms.

NEXTDC builds and operates the data centres that bring those requirements together.

AI is also changing what customers need from these facilities. NEXTDC says demand is moving towards larger deployments, higher power densities, and infrastructure capable of supporting advanced computing and liquid cooling.

I like this position because NEXTDC does not need to predict which AI model or application will eventually dominate.

If companies continue spending heavily on computing infrastructure, they will need somewhere capable of running it.

Customers are already committing

The strongest part of the story for me is that NEXTDC is seeing customers reserve enormous amounts of capacity ahead of delivery.

At the end of FY26, contracted utilisation had reached 740.1MW, while only 175MW was already billing.

That gap represents a substantial amount of contracted capacity still to be built, delivered, and eventually converted into revenue.

Earlier in 2026, NEXTDC estimated that its contracted utilisation at the time could generate more than $1 billion of EBITDA once delivered, without assuming additional customer wins.

For me, this makes the AI thesis much more tangible.

NEXTDC is investing billions of dollars because customers are signing contracts for capacity, rather than management simply building facilities and hoping demand arrives later.

There is a price for rapid expansion

This opportunity requires an extraordinary amount of capital.

NEXTDC has been raising equity, debt, and hybrid funding to accelerate construction, while major developments need access to land, power, equipment, and skilled workers.

Execution therefore becomes critical. Delays, cost overruns, financing pressures, or slower AI infrastructure spending could all hurt returns. Investors also need patience because there can be a long gap between signing a customer and the new capacity beginning to generate revenue.

I think those risks justify treating NEXTDC as a growth investment rather than assuming AI demand guarantees success.

Foolish takeaway

What excites me about NEXTDC is the amount of future business already taking shape.

AI is pushing computing requirements sharply higher, and customers are committing to NEXTDC’s capacity years before much of it starts billing.

There is a lot of expensive construction still ahead, but I think this ASX stock has positioned itself in a valuable part of the AI infrastructure chain.

If it delivers the capacity already contracted and continues winning demand, I believe it could become one of the ASX’s standout long-term AI investments.

The post Could this be one of the best AI investments on the ASX? appeared first on The Motley Fool Australia.

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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.

Block Inc (ASX: XYZ) shares opened 2% higher on Friday to $115.06, after already jumping 4.5% higher on Thursday. That’s lifting the gain over the past 12 months to around 17%. Despite that solid run, the Afterpay owner still looks like a very interesting proposition for growth-focused investors.

Block offers exposure to some of fintech’s most attractive growth themes, including payments, lending, financial services, point-of-sale software and buy now, pay later. Its Cash App, Square and Afterpay businesses give it multiple avenues to capture that growth.

Investors may also have another reason for optimism: analysts believe Block shares are far from done. 

Block has multiple growth engines

Block has one of the most attractive long-term growth runways in the ASX tech sector. The company owns Square, Cash App, Afterpay and other payment and financial technology businesses, giving it exposure to merchants, consumers, payments, lending, point-of-sale tools, buy now, pay later and broader financial services.

Two powerful ecosystems sit at the centre of the strategy of Block shares. Cash App serves consumers, while Square provides payments, software and financial services to businesses. Afterpay adds another connection between shoppers and merchants.

Cash App’s opportunity extends well beyond peer-to-peer payments. The app is increasingly becoming a financial hub where customers can receive wages, use a debit card, save, borrow, invest and pay for purchases.

That gives Block several ways to deepen relationships with existing users. Someone who starts by sending money to a friend could eventually use Cash App as their primary financial account.

Is Block’s strategy starting to pay off?

The strategy appears to be gaining momentum. Cash App gross profit rose 38% year-on-year in the first quarter of FY26, while consumer lending origination volume jumped 82%.

Square provides another substantial growth engine. Its combination of payments, point-of-sale hardware, banking tools and industry-specific software allows sellers to manage more of their operations through one platform.

International expansion could provide another leg of growth for Block shares. Square’s international gross payment volume rose 35% year-on-year in the latest quarter, yet international volumes remain materially smaller than those in the US, representing approximately 22% of total Square GPV.

AI could add another growth catalyst

Block is also investing in practical artificial intelligence.

Moneybot is now live across Cash App, while Managerbot is being scaled across Square sellers. The tools are designed to help customers and merchants take action rather than simply receive information.

If AI helps sellers identify problems, improve workflows or understand patterns, Square could become even more valuable. Similarly, AI-powered financial guidance could encourage deeper Cash App engagement.

Analysts see major upside

Analysts remain broadly optimistic about Block shares, with several brokers maintaining buy ratings based on the company’s long-term growth potential and prospects for a rebound as economic conditions stabilise.

The average 12-month price target stands at $172.33, implying approximately 50% upside from the current share price.

The most bullish forecasts reach as high as $256, suggesting potential returns of approximately 123%.

For investors seeking exposure to a diversified fintech business, Block’s combination of Cash App, Square, Afterpay and AI initiatives could make the shares one of the more interesting long-term growth opportunities in the ASX technology sector.

The post Experts tip Afterpay owner Block shares to deliver over 50% returns appeared first on The Motley Fool Australia.

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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 Block. 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 iShares S&P 500 ETF (ASX: IVV) and the Betashares Nasdaq 100 ETF (ASX: NDQ) are two popular ways for ASX investors to access US shares.

I think both are strong long-term investments.

But the better choice comes down largely to how much concentration and volatility an investor is comfortable accepting.

Why I like the IVV ETF

The IVV ETF tracks the S&P 500 Index, giving investors exposure to around 500 of America’s largest companies.

I like it as a core holding because the portfolio reaches across technology, healthcare, financial services, industrials, consumer businesses, and other major parts of the US economy.

There is still plenty of exposure to companies benefiting from technological change. Nvidia, Microsoft, and Amazon are among the major businesses represented.

But the investment case does not depend as heavily on technology remaining the strongest part of the market.

That makes the IVV ETF the option I would favour if I wanted broad US exposure and something I could comfortably keep adding to through a wide range of market conditions.

Why take more risk with the NDQ ETF?

The NDQ ETF tracks the Nasdaq 100 Index, which contains 100 of the largest non-financial companies listed on the Nasdaq.

Its portfolio is much more concentrated in technology and growth businesses. That could work particularly well if areas such as artificial intelligence, cloud computing, semiconductors, digital advertising, and software continue expanding strongly over the next decade.

I also like that the Nasdaq 100 can change as new corporate leaders emerge. Investors are not locking themselves into today’s biggest technology companies forever.

The trade-off is that the NDQ ETF can be much more sensitive when growth shares fall out of favour.

A sharp sell-off in technology can hit a large portion of the portfolio at once, while the IVV ETF has more exposure to other industries that may behave differently.

For investors comfortable riding through those swings, I think the extra concentration could also provide greater upside if its major growth businesses continue performing strongly.

Which would I buy?

If I wanted the more balanced option, I would choose the IVV ETF.

It still gives me access to many of America’s leading growth companies, but I would be spreading my money across a much wider section of the economy.

If I had a higher tolerance for risk and wanted greater exposure to technology-led growth, I would lean towards the NDQ ETF.

There is also no reason investors necessarily need to choose only one. Holding both would increase exposure to many companies that appear in each index, so I would just be conscious of that overlap.

Foolish takeaway

For me, this is less about identifying a winner and more about choosing the ETF that suits the investor.

The IVV ETF would be my preference for someone wanting broad US exposure with less concentration.

The NDQ ETF could suit investors willing to accept more volatility in pursuit of stronger growth.

I think both can be excellent buy and hold investments when matched with the right risk tolerance.

The post IVV vs NDQ ETF: Which is the better buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.