Category: Stock Market

Residential development company Peet Ltd (ASX: PPC) has upgraded its earnings guidance for the second time this calendar year, saying it now expects full-year net profit to come in at $98 to $100 million.

This figure is up from $86 to $90 million the company forecast at the release of its half-year results, which was itself an upgrade.

The new figure amounts to an increase over FY25’s net profit of 67% to 71%.

Strong pipeline paying off

The company said re the upgrade:

This revised guidance is primarily driven by continued strong market conditions across Western Australia and Queensland and Peet’s capacity to deliver into the prevailing favourable market conditions. Peet has responded to the sustained, elevated demand with the acceleration of its construction program, thereby bringing product to market sooner than previously expected. This strong demand in key markets has underpinned price growth and consistent sales volumes throughout FY26.

Peet said it was continuing to target growth in FY27, “supported by its established pipeline, visibility of contracts on hand, and demand across key markets, with outcomes subject to prevailing market conditions and settlement timing”.

The company added:

Whilst population growth and constrained housing supply remain favourable for the sector, the Group continues to monitor the impact of interest rate rises and cost of living pressures on customers, as well as broader geopolitical and macroeconomic factors.

Dividend yield solid

Peet in February declared an interim dividend of 6.5 cents per share, which was an increase on the previous year’s interim dividend of 2.75 cents.

Based on the company’s current share price, it is paying a trailing dividend of 7.21%.

The company previously had a buyback running, which was closed during the first half having bought back about 4% of the company’s shares on issue.

At the time of releasing its first-half results, the company said it had cash and undrawn facilities worth more than $200 million with which to fund its growth plans.

Peet made a net operating profit of $50.9 million for the half, up 102%, with operating earnings per share of 10.88 cents also up 102%.

The company’s gearing level was 24.7%, within its target range of 20% to 30%.

The company added:

The Group’s EBITDA margin strengthened to 34%, an improvement of eight percentage points on the prior corresponding period, while net tangible assets increased to $1.44 per share, up 5% since 30 June 2025.

Peet shares were 4.2% higher on Thursday morning at $1.66. The company is valued at $746.7 million.

The post This big dividend payer has just increased its profit guidance for the second time appeared first on The Motley Fool Australia.

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• Buying Yancoal shares? Here’s why the ASX 200 coal stock is outperforming today
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• Why is this ASX lithium share charging 15% higher today?

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.

Yancoal Australia Ltd (ASX: YAL) shares are flat today but still outpacing the sinking benchmark.

Shares in the S&P/ASX 200 Index (ASX: XJO) coal stock closed yesterday trading for $6.95. In early morning trade on Thursday, shares are changing hands for $6.95 apiece. (I’ll let you do the maths!)

For some context, the ASX 200 is down 1% at this same time.

Here’s what’s happening.

Yancoal shares outerperforming amid AGM

Yancoal shares are outpacing the losses posted by ASX 200 today as the miner holds its annual general meeting (AGM).

On the environmental front, the company said it intends to develop a Climate Transition Plan to “strengthen climate resilience” and support its P4 Sustainability Strategy. Yancoal published its annual sustainability report in April.

Reviewing the company’s 2025 performance, management highlighted that run of mine (ROM) coal production of 67 million tonnes (on a 100% basis) was up 7% from 2024, while saleable production of 50.8 million tonnes increased by 6%.

However, with 2025’s average realised coal prices sliding 17% from 2024 to $146 per tonne, Yancoal’s full-year revenue declined by 13% to $5.95 billion.

Underscoring the premium price of steel making coal, Yancoal received an average price of $203 per tonne for its metallurgical coal compared to $136 per tonne for its thermal coal, which is more broadly used for power generation.

Indeed, in April, Yancoal inked a deal valued at some US$2.4 billion to acquire an 80% interest in the Kestrel Coal Mine, a long-life metallurgical coal mine located in Queensland’s Bowen Basin.

“Kestrel delivers increased scale and diversification to Yancoal’s portfolio and is expected to contribute premium metallurgical coal into our product mix,” Yancoal CEO Sharif Burra noted.

On the passive income front, Yancoal noted that it has now paid out more than $4 per share of unfranked and fully-franked dividends since 2018. That equates to some 58% of the current Yancoal share price.

What’s next for the ASX 200 coal stock?

Looking to what could impact Yancoal shares in the months ahead, the miner provided full-year 2026 guidance for attributable saleable production of 36.5 million to 40.5 million tonnes. That compares to 38.6 million tonnes in 2025.

As for the impact of the Middle East conflict, Yancoal expects 2026 cash operating costs of $90 to $98 per tonne. That’s up from $92 per tonne last year, with higher diesel costs expected to drive some of that increase.

On the capex front, Yancoal forecasts attributable full-year capital expenditure of $750 million to $900 million, compared to $750 million in 2025.

Management noted that, “Continual reinvestment ensures assets remain large-scale and low cost.”

The post Buying Yancoal shares? Here’s why the ASX 200 coal stock is outperforming today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

IPH Ltd (ASX: IPH) shares are edging lower on Thursday despite the intellectual property services group naming its next boss.

The IPH share price is down 1.55% to $3.80 at the time of writing.

The stock is still up about 8% in 2026, so it has clawed back some ground this year. But it has been a rougher ride over 12 months, with IPH shares still down around 23%.

Let’s take a closer look at the announcement.

A new boss is coming

According to the release, IPH has appointed Tony O’Malley as its new Managing Director and Chief Executive Officer.

He will start in the role on 1 July 2026 and will replace Andrew Blattman, who flagged his retirement in November.

Blattman will stay with the company for a transition period and continue providing support until 30 November 2026.

The appointment follows what IPH described as a comprehensive global search.

IPH chair Peter Warne said O’Malley brings more than 30 years of experience across legal and professional services.

His most recent senior executive role was at PwC, where he was global legal business solutions leader. In that role, he helped run a legal services business across more than 100 territories, with about 4,000 people.

O’Malley has also held senior roles at King & Wood Mallesons and the Australian Competition and Consumer Commission (ACCC).

Why the appointment is important

IPH is an intellectual property services group with operations across 27 offices and 25 IP jurisdictions. Its member firms include AJ Park, Applied Marks, Griffith Hack, Pizzeys, ROBIC, Smart & Biggar, and Spruson & Ferguson.

Its clients include Fortune Global 500 companies, public sector organisations, research organisations, SMEs, and professional services firms.

After a tough year for the share price, investors now know who will lead the next stage of the business.

IPH pointed to O’Malley’s experience in business transformation and AI-enabled legal technology. His background should get some attention as clients look for faster systems, smoother processes, and better use of technology.

O’Malley said IPH is at a pivotal point in its transformation. The real test will be how that shows up in the business after he takes over in July.

What the new CEO will be paid

IPH also set out the key terms of O’Malley’s pay deal.

He will receive total fixed remuneration of $950,000 a year, including superannuation.

On top of that, he can earn a short-term incentive of up to $760,000 if higher performance targets are met.

His long-term incentive allocation has been set at $1.35 million.

Any short-term incentive will be split evenly between cash and deferred share rights, with the deferred portion vesting over 2 years.

The post Investors are watching this ASX stock after a big CEO announcement 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Galan Lithium Ltd (ASX: GLN) shares have returned from their trading halt with a bang on Thursday morning.

In early trade, the ASX lithium share is up 15% to 50 cents.

Why is this ASX lithium share jumping?

Investors have been bidding the company’s shares higher after Galan announced a major milestone at its Hombre Muerto West (HMW) project in Argentina.

According to the release, the company has completed wet plant commissioning and produced its first processed lithium chloride brine at HMW. This processed brine has now been discharged into the final evaporation ponds.

This is a key step for the ASX lithium share as it moves closer to lithium chloride concentrate production and potential product sales in the second half of 2026.

What happened?

Galan advised that following completion of Phase 1 construction in March, it has successfully completed electrical and mechanical testing and transitioned HMW into wet commissioning.

The nanofiltration plant was initially commissioned with raw brine at low pressure before being fed with pre-concentrated brine under high pressure.

Importantly, independent laboratory assays have validated that impurity separation performance is consistent with plant design specifications.

The processed lithium chloride will now remain in final evaporation ponds for around three months. During this period, water will be removed and contained lithium will be concentrated. This is expected to produce lithium chloride concentrate with 6% lithium content, which will then be sold under Galan’s Phase 1 offtake arrangements.

Ramp-up underway

Galan noted that it has not yet achieved stabilised production at HMW and is now moving into an optimisation phase.

This means processed brine rates are expected to vary initially. However, once optimisation is complete, the company expects processing to stabilise at an annualised rate of 4,000 tonnes per annum lithium carbonate equivalent.

The ASX lithium share also highlighted that it has around 10,000 tonnes of LCE brine inventory in evaporation ponds. Management said this provides immediate feedstock for the production ramp-up phase.

Management commentary

Galan’s managing director, Juan Pablo Vargas de la Vega, appeared to be very pleased with the news. He said:

The significance of the successful commissioning of the HMW plant cannot be overstated. The HMW mining operations have now been completely de-risked from start to finish and in just a few months we expect to have lithium chloride concentrate ready for sales. To our knowledge Galan will be the only greenfield lithium project coming online in 2026. Becoming a new source of potential supply to the battery supply chain is very exciting and it is well timed to take advantage of a favourable lithium pricing environment.

The post Why is this ASX lithium share charging 15% higher today? 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 (AI) infrastructure is a trending theme amongst investors right now. And for good reason. For those searching for the next ASX growth stock, it’s a solid hunting ground. The surge in AI demand is driving unprecedented need for processing power, data storage, and highly secure and scalable infrastructure.

In the next five years, Australia’s data processing power requirements are set to more than double and the big players (think Amazon, Microsoft, Google) are likely to need more local infrastructure. This is leading to energy concerns, with requirements forecast to reach up to 35 terawatt hours annually by 2030.

NextDC Ltd (ASX: NXT) is well placed to deliver on a number of fronts. And as one of few pure-play data centre options , it’s a hot ASX growth stock for future-focused investors.

The independent data centre operator builds and runs a nationwide network of powerful, secure, and energy-efficient data centres. And energy efficiency is key, with integrated solutions including solar arrays and smart microgrids built into its centres.

A rapid expansion pipeline for this ASX growth stock

NextDC operates 20 data centres nationally, with imminent plans for nine more across Sydney, Melbourne, Gold Coast, Geelong, and Darwin. It also has an international expansion strategy, with centres planned for Tokyo, Kuala Lumpur, Bangkok, Singapore, and Auckland. 

It’s H1FY26 results highlighted its strong performance against the prior corresponding period with:

• 13% net revenue increase
• 9% underlying EBITDA increase
• 137% growth in contract utilisation

The bull case for this ASX growth stock is clear. A hot industry, ever-growing demand, and a reliable operator who is committed to energy efficiency.

The bear case for NextDC

Valuation is high. It’s currently sitting at a 24 to 25 times price-to-sales ratio, an exceptionally high valuation. That said, it’s potential is massive, and I believe it’s one of the stocks that can justify this multiple.

It’s not yet profitable with significant cash burn. It reported a net loss after tax of $39.4 million in the half to 31 December 2025. Which again, in and of itself, isn’t a huge concern, as long as you have conviction in its mission. The data centre business is capital intensive, and if NextDC is going to execute on its ambitious growth plans, there’s no way around that.

And that’s the other risk, execution. While NextDC has a solid track record thus far, projects of this scale will always carry execution and financial risks. Construction and supply chain bottlenecks could lead to project delays and, if capital market conditions weaken, balance sheet leverage could be under pressure.

Is NextDC a buy at the current price?

Valuation is high, it hasn’t reached profitability, and there are some significant potential execution risks. But, for me, the answer is still a resounding yes for this ASX growth stock. It offers direct access to the AI and cloud infrastructure market, with booming demand for data centres creating an impressive long-term growth runway. In my opinion, there is significant upside here for investors, even at the current share price.

The post Is NextDC the hottest ASX growth stock right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 and Microsoft. The Motley Fool Australia has recommended Amazon and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares are edging lower on Thursday.

At the time of writing, the counter drone technology company’s shares are down 1% to $3.13.

This follows the release of an announcement relating to its protection of the FIFA World Cup in the United States.

DroneShield shares in focus following FIFA World Cup update

The company has announced that it is expanding urban airspace security capabilities ahead of FIFA World Cup 2026 through a regional multi-site deployment. This is designed to support persistent low-altitude airspace awareness across the Kansas City metropolitan area.

According to the release, the initiative combines operational airspace coordination, distributed radar coverage, radio frequency (RF)-based drone detection, and integrated situational awareness capabilities to help support security operations across multiple jurisdictions and operational environments ahead of the tournament.

It is being led by the Kansas City Police Department (KCPD) in partnership with Airspace Link’s AirHub Portal, and regional public safety stakeholders.

DroneShield advised that its role will be the primary detection and threat response layer. It will support multi-site airspace awareness workflows through RF sensing, sensor fusion, operational coordination, and counter-UAS capabilities.

It notes the deployment is designed for complex urban environments where authorised drone operations, public safety aviation activity, media coverage, and potential unauthorised drone activity may occur simultaneously.

The system supports coordinated airspace awareness and operational response across these overlapping activities throughout the broader security environment.

Pioneering a layered airspace security model

DroneShield’s director of public safety, and a retired FBI agent with 20 years specialising in counterterrorism and public safety, Tom Adams, commented:

Ten years ago, most cities weren’t thinking about drone threats at this scale, Kansas City is now helping pioneer a layered airspace security model built for the realities of modern urban environments.

Major Greg Williams from the Kansas City Police Department added:

Protecting FIFA World Cup 2026 requires a new level of airspace coordination. Kansas City is building a long-term framework that helps public safety agencies safely manage growing drone activity across the metro area.

The release also notes that the deployment incorporates radar technologies from Echodyne alongside DroneShield’s detection and operational awareness capabilities. This is creating a layered airspace security architecture intended to support persistent visibility across the broader operational environment.

Eben Frankenberg, CEO at Echodyne, commented:

Maintaining visibility across complex urban airspace environments requires persistent awareness and layered sensing capabilities that can support dynamic operational conditions. Kansas City represents an important example of how public safety agencies and technology partners are working together to support scalable, multi-site airspace security operations ahead of major public events.

DroneShield shares are still up over 150% over the past 12 months.

The post DroneShield shares in focus amid FIFA World Cup update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

Vulcan Energy Resources Ltd (ASX: VUL) shares are catching the eye on Thursday.

In morning trade, the ASX 200 lithium stock is up 8% to $3.84.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.8% at the time of writing.

Why is this ASX 200 lithium stock jumping?

Investors have been buying the lithium developer’s shares this morning following the release of a major update on its Lionheart operation in Germany.

According to the release, the ASX 200 lithium stock has achieved financial close as part of the EUR2.2 billion (A$3.9 billion) Lionheart Project equity and debt financing arrangements.

It notes that this financing package is designed to fund the construction of Lionheart through a combination of arrangements at the project, subsidiary, and company level.

What is Lionheart?

The Lionheart Project is located in the Upper Rhine Valley Brine Field between Germany and France.

It is Vulcan’s first phase of production and described by management as “a lighthouse project for Europe’s energy and critical raw material resilience.”

The development of Lionheart involves the construction of an integrated lithium and renewable energy project targeting production capacity of 24,000 tonnes of lithium hydroxide monohydrate (LHM). This is enough for around 500,000 electric vehicle batteries per year.

In addition, it is expected to deliver a co-product of 275 GWh of renewable power and 560 GWh of heat per annum for local consumers. This is over an estimated 30-year project life.

In December, the ASX 200 lithium stock secured its financing package, made a concurrent positive final investment decision (FID), settled its underwritten institutional placement and entitlement offer and commenced Lionheart construction.

Now with financial close, the balance of the financing package can be accessed subject to ongoing conditions for drawdown. This is customary for such financing arrangements.

The company expects these remaining conditions to be satisfied in line with disbursements and drawdown schedules sequenced to Lionheart’s budgeted construction schedule and capital expenditure profile.

The ASX 200 lithium stock’s executive director and group chief financial officer, Felicity Gooding, believes this is a significant milestone for the company.

Commenting on the news, Gooding said:

Reaching Financial Close is a significant milestone and reflects the continued support from our financing partners, including European and German government agencies, commercial banks, and strategic industrial partners. We continue to enact our strategic plan to deliver Lionheart on time, on budget and to nameplate capacity.

The post This ASX 200 lithium stock is jumping 8% on ‘significant milestone’ 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.

Atomic Eagle Ltd (ASX: AEU) isn’t one of the better-known names in the ASX uranium sector, and there’s a good reason for that.

The company in its current form only came into being in November last year via a reverse takeover, when GoviEx Uranium was folded into what was then Tombador Iron.

African focus

Atomic Eagle’s flagship project is the Muntanga uranium project in Zambia, which it released a feasibility study for in March.

That study included a maiden ore reserve of 39.6 million pounds of uranium and estimated the project had enough ore reserves to support a 12 year mine life.

It was estimated the mine would cost US$282 million to build and have a payback period of 3.5 years.

The company also said “resource growth will underpin an increased production throughput to significantly enhance the project’s economic outcomes”.

To that end the company announced in April it had started a 30,000m drilling campaign across three priority target areas, designed to increase the mineable resource.

The company said it had multiple rigs working on the program.

Atomic Eagle Chief Executive Officer Phil Hoskins said at the time:

Having already demonstrated the success of our initial exploration program that saw the resource increase by 24% to 58.8Mlbs U3O8 within 3 months of owning the Project, we are excited to commence a 30,000 metre program where we will be testing several high priority exploration targets. Our strategy is to grow the resource to underpin a significantly larger mining operation than that contemplated in the previous feasibility study2. With two rigs drilling and numerous walk-up drill targets, we believe there is great potential to expand upon the existing resource.

Shares looking cheap

Shaw and Partners this month initiated coverage of Atomic Eagle with a buy recommendation.

They point out that the project is in a mining-friendly country.

Zambia has long been one of Africa’s most established mining jurisdictions, underpinned by over a century of commercial copper production, a legal framework rooted in English common law, and a government that has consistently recognised mining as the cornerstone of economic development.

They also note that Atomic Eagle has expansion possibilities, with an option to buy the early-stage Sitwe project in the north east of Zambia.

They added:

Atomic Eagle also has a potential interest in the Madaouela Uranium Project in Niger which had its licence revoked in 2024. We do not include any value for the project in our Atomic Eagle price target of $1.40 per share. However, there is the possibility that Atomic Eagle and the Niger Government reach an agreement with the project returned.

Shaw and Partners’ $1.40 target price is well above the current Atomic Eagle share price of 39 cents.

The company is valued at $152.8 million.

The post This under the radar uranium stock could more than triple Shaw and Partners says appeared first on The Motley Fool Australia.

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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.

The Australian share market is not having one of its better years.

That does not mean there are no strong returns available. It may simply mean investors need to widen the lens.

For many Australian investors, the first step beyond the ASX is usually the United States. That makes sense. The US remains the world’s largest economy and is home to many of the companies most closely linked to artificial intelligence, including Nvidia, Alphabet, and Micron.

The iShares S&P 500 ETF (ASX: IVV) has been one of the simplest ways for ASX investors to get that exposure. The fund seeks to track the performance of the S&P 500 Net Total Return Index in Australian dollars, before fees and expenses.

However, the US is not the only place benefiting from the next wave of global growth.

Closer to our shores, some country-specific ASX ETFs have been racing ahead of both the Australian market and the S&P 500 Index (SP: .INX). Two standout examples are the BetaShares Japan ETF – Currency Hedged (ASX: HJPN) and the iShares MSCI South Korea ETF (ASX: IKO).

The Vanguard Australian Shares Index ETF (ASX: VAS) remains a useful broad exposure to Australian shares. Yet over the past 12 months, HJPN and IKO have shown how powerful it can be to think globally.

Japan is back on the radar

The HJPN ETF has gained more than 53% over the past year.

The fund gives investors exposure to a diversified portfolio of large, globally competitive Japanese companies, while hedging currency exposure back into Australian dollars. BetaShares lists HJPN in the global shares category and notes its Japan focus and currency-hedged structure.

Japan has become one of the more interesting markets in the world for long-term investors.

After decades of deflation and lacklustre investor interest, the country is seeing a mix of catalysts emerge. Inflation has normalised, companies are being pushed to improve corporate governance, and more Japanese businesses are focusing on dividends, buybacks, and stronger capital allocation.

That is not just attracting retail ETF money.

Warren Buffett’s Berkshire Hathaway has also increased its exposure to Japanese companies. The appeal appears to be a combination of compelling valuations, strong balance sheets, and more efficient use of capital.

In other words, Japan is not just a short-term trade. It may be a structural reappraisal of an overlooked market.

Korea is riding the AI supply chain

If Japan has been strong, South Korea has been explosive.

The IKO ETF has surged around 200% over the past 12 months, helped by massive gains in Korean semiconductor stocks.

BlackRock says IKO provides exposure to large and mid-sized companies in South Korea and can be used to express a single-country market view.

The key driver has been simple: artificial intelligence needs memory chips.

IKO has heavy exposure to Samsung Electronics and SK Hynix, two global leaders in memory semiconductors. These companies sit deep inside the AI infrastructure buildout, powering data centres, cloud computing, and high-performance computing demand.

This is where the phrase “skate to where the puck is going” matters.

Australian investors can own banks, miners, supermarkets, insurers, and infrastructure companies at home. Many of those businesses are excellent. But the ASX is light on the deepest parts of the AI supply chain.

Korea offers exposure to a very different part of the global economy.

The bigger lesson for ASX investors

The point is not that investors should chase the strongest ETF of the past year.

That can be dangerous. A fund that has surged 50%, 100%, or 200% can easily pull back. Country-specific ETFs can also be more concentrated than broad-market index funds.

However, the bigger lesson is important.

A diversified portfolio does not have to mean owning only the largest companies in Australia. It can mean owning baskets of countries, sectors, and themes that give investors exposure to where global earnings may be heading next.

The ASX remains a sensible starting point. The US remains a powerful global engine.

However, the Japanese and South Korean markets show that the investment world is far bigger than our own backyard — and far broader than the biggest names on Wall Street.

The post These 2 top performing ASX ETFs show why investors should look beyond Australia and the US 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, Berkshire Hathaway, BlackRock, Micron Technology, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Berkshire Hathaway, 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.

Here is a question worth asking.

When a hospital buys AI diagnostic software, when a bank deploys a new cybersecurity platform, or when a business installs a new data centre rack, who actually makes that transaction happen?

Not the software company, nor the hyperscaler.

The answer, in Australia and New Zealand, is often Dicker Data Ltd (ASX: DDR).

The Sydney-based technology distributor sits in the middle of the entire AI infrastructure supply chain, connecting more than 10,000 reseller partners with the world’s leading technology vendors.

It is an unglamorous position, but also an extraordinarily promising one.

What happened at the AGM this week

Dicker Data jumped 8% on Wednesday after AGM commentary confirmed the strong FY26 momentum investors had been hoping for.

Unaudited gross revenue for the first four months of FY26 rose 13.4% to $1.27 billion. Net profit before tax jumped 45.5% to $47.3 million.

Management attributed the result to elevated endpoint demand, software growth, and data centre refresh activity across enterprise customers.

CEO and Executive Chair Fiona Brown said those drivers were accelerating rather than slowing, pointing to further growth ahead.

That is a meaningful upgrade to sentiment for a stock that had been down 6% in 2026 before Wednesday’s session.

A new growth vector that many investors have missed

On 21 April 2026, CrowdStrike announced an expansion of its Managed Security Service Provider strategy across Japan and Asia Pacific, naming Dicker Data as a key distributor to onboard and support MSSPs delivering AI-driven Falcon platform security to small and medium-sized businesses.

This appointment deepens Dicker Data’s role from hardware distributor to a recurring, higher-margin cybersecurity services platform, capturing a slice of CrowdStrike’s extraordinary momentum.

CrowdStrike itself just reported its best year on record, with its founder and CEO George Kurtz stating:

As enterprises rapidly adopt AI, CrowdStrike is mission-critical infrastructure. The AI revolution is creating a massive growth opportunity, one that our technology, team, and ecosystem are well positioned to continue winning.

Every dollar of that CrowdStrike growth in Asia Pacific now flows partly through Dicker Data’s distribution network.

The macro backdrop is supportive

Gartner projects Australian IT spending to reach $172.3 billion in 2026, up 8.9% year on year.

Every dollar of enterprise AI spending in Australia creates demand for the hardware, software licences, and infrastructure products that Dicker Data distributes.

The Windows 10 end-of-life refresh cycle is also adding a meaningful volume tailwind as businesses replace ageing endpoints with AI-capable hardware.

The valuation and risks

Dicker Data trades on a price-to-earnings (P/E) ratio of approximately 20 times, a material discount to the peer average of 41 times for technology distributors globally.

Jarden carries a buy rating with an $11 price target, while Wilsons Advisory is overweight with an $11.07 target, both implying meaningful upside from the current price of around $9.64.

The stock pays fully-franked quarterly dividends, with a trailing yield of approximately 4.7%, adding an income dimension that is rare among technology stocks.

The main risk is margin pressure.

Dicker Data operates on thin margins of approximately 3.3%, and a shift toward larger, more competitive enterprise deals has squeezed profitability even as revenue has grown.

Any slowdown in enterprise AI spending would hit volumes quickly.

Foolish Takeaway

Dicker Data is an exciting ASX tech stock.

The company sits at the intersection of every AI transaction in Australia and New Zealand and takes a margin on each one.

As Australian enterprise AI spending accelerates toward $172 billion, that position looks increasingly valuable.

At 20 times earnings with a 4.7% fully-franked yield, this ASX tech stock is priced like a mature distributor rather than a beneficiary of one of the biggest technology investment cycles in history.

The post This ASX tech stock could be one of the most overlooked AI infrastructure plays on the market appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CrowdStrike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Gartner. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended CrowdStrike. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.