Category: Stock Market

This S&P/ASX 200 Index (ASX: XJO) tech stock has snapped back to life this past week. The Life360 Inc (ASX: 360) share price finished last week at $40.43, gaining 10.7% for the week.  

That’s still a long way away from its peak of $55.87 at the start of October. This past month, the ASX tech share has lost 19% of its value, but it remains 64% higher over the past 12 months.

Bumpy rally ahead?

This year has been a volatile one for Life360. The latest spurt is propelled by renewed investor faith and strong results. However, analysts caution that the next rally might be bumpy as this ASX 200 stock is shifting its business model.

Life360 has grown from a family-tracking app to a global subscription platform. Monthly active users now exceed 92 million, paying circles are growing rapidly, and the company is experiencing both higher profitability and robust operating cash flow.

Rapid international expansion

With only a fraction of its global user base monetised and new advertising just beginning, Life360 has substantial growth potential. The business is expanding rapidly across the US and internationally, underpinned by subscription growth, rising average revenue per user, and expanding premium features.

This is reflected in the latest results, with third-quarter revenue rising 34% year over year to US$124.5 million and a sharp increase of 319% in operating cash flow to US$26.4 million. In addition, its adjusted EBITDA surged 174% to US$24.5 million.  

Management of Life360 also announced user growth, an important indicator for investors that subscription demand remains durable. Those fundamentals triggered an immediate rally in this ASX 200 tech stock.

Privacy and regulatory friction

Still, the rebound hasn’t been a clean sprint and halted in November. The stock plummeted after Life360 revealed the $120 million acquisition of ad-tech firm Nativo. Investors reacted warily as they viewed the deal as a signal that the company is leaning harder into advertising.

This is a lower-margin, harder-to-execute line of business. Advertising also carries privacy and regulatory friction. Monetising location data at scale invites scrutiny, while the integration of ad-tech teams will prove difficult. It will be challenging for Life360 to prove that ad revenue will be sticky and profitable.

Analysts’ outlook

After its strategic change, several brokers lowered their price targets for this ASX 200 tech stock, though they remain optimistic overall. While most analysts still recommend buying the stock, opinions differ on how much the new advertising strategy will improve margins and boost free cash flow.    

The average 12-month price target for the $6.6 billion tech company is close to $49.80. This suggests a 24% upside for this ASX 200 tech stock. Bell Potter is more bullish on the company’s outlook. It recently put a buy rating and $52.50 price target on Life360.

The post After springing back to life, how far can this ASX 200 tech stock climb? appeared first on The Motley Fool Australia.

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• 3 ASX growth shares that could be future giants
• The Warren Buffett golden rule that investors can’t ignore
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• Bear market alert: ASX 200 tech shares down 24% since September peak

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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX All Ords Index (ASX: XAO) closed at 8,918.7 points on Friday, up 0.075% for the week and up 2.5% over 12 months.

Experts have called out two ASX All Ords shares that they think are great buys with substantial potential upside ahead.

Let’s take a look.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price tumbled to a 52-week low of $17.54 on Friday.

The ASX All Ords financial share has fallen 24% over the past 12 months.

UBS reiterated its buy rating on Suncorp shares last week despite reducing its forecast earnings for the insurer.

The broker made changes to its forecast due to a sharp increase in natural disaster claims in Australia and New Zealand.

As reported on sharecafe, UBS expects that Suncorp will exceed its FY26 catastrophe budget by $580 million.

This has led to a 31% reduction in the broker’s forecast FY26 earnings per share (EPS) to 88 cents.

UBS has also reduced its EPS forecast for FY27 by 1% to $1.27 per share.

Potential mitigations may include continued increases in home and car insurance premiums during 2H FY26 and into 1H FY27.

The broker reduced its share price target from $23.15 to $22 following its earnings forecast downgrade.

The lower price target still implies a healthy potential upside of 25% over the next 12 months.

betr Entertainment Ltd (ASX: BBT)

The betr Entertainment share price hit a new 52-week low of 21 cents on Friday, down 25% over the past year.

Morgans maintained a buy rating on this ASX All Ords consumer discretionary share after its 1Q FY26 update.

The sports and racing betting group reported $363 million in turnover for the first quarter, up 27% on the prior corresponding period.

The broker said:

BETR Entertainment (BBT) reported a solid first quarter, delivering results modestly ahead of expectations across key metrics despite unfavourable sporting outcomes in September.

Turnover, gross win, and net win margins all exceeded forecasts, supported by improved customer engagement and product mix.

We take encouragement that the recent lift in brand and product investment is now translating into operating momentum.

The balance sheet remains in a strong position, providing flexibility to pursue both organic and inorganic growth opportunities.

At betr’s annual general meeting last week, executive chair Matthew Tripp said:

The Company enters FY26 in its strongest position to date, with the foundations in place to support disciplined, sustainable growth…

Our key trading metrics confirm the new scale of the business with record levels of turnover and sustained growth more than one year on since the BlueBet/betr migration.

Morgans has a price target of 43 cents on betr Entertainment, implying the ASX All Ords share could double over the next year.

The post Experts say buy: 2 ASX All Ords shares at 52-week lows appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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.

When you’re retired, investing becomes less about chasing the highest possible return and more about finding stability, reliability, and income.

That’s where exchange-traded funds (ETFs) shine.

They offer instant diversification, lower risk than individual shares, and the comfort of knowing your portfolio is spread across many high-quality companies.

If you are looking for ASX ETFs that can help protect capital while still delivering steady returns, the three listed below could be excellent options. Here’s what you need to know about them:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

For retirees who rely on dividends to help fund everyday expenses, the Vanguard Australian Shares High Yield ETF remains one of the most popular ETF choices on the ASX.

This fund targets Australian shares with above-average forecast dividend yields, giving investors broad exposure to income-rich sectors like financials, resources, and telecommunications.

Its current holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS). These are three of the most dependable dividend payers on the market. They generate substantial cash flow, operate entrenched market positions, and have long histories of returning profits to shareholders.

At present, this ASX ETF trades with a dividend yield of 4.2%.

iShares Global Consumer Staples ETF (ASX: IXI)

Consumer staples are some of the most defensive companies in the world, and the iShares Global Consumer Staples ETF wraps them into a single, highly resilient ETF. It invests in global giants that sell products people continue buying regardless of economic conditions. Think groceries, beverages, household essentials, and healthcare items.

Its holdings include Walmart (NYSE: WMT), Coca-Cola (NYSE: KO), and Nestlé (SWX: NESN). These are companies with enormous scale and predictable demand. Whether the economy is booming or struggling, these businesses generate steady earnings, which is why they tend to hold up far better than growth stocks during market downturns.

For retirees who want international diversification and smoother returns, this fund offers a calm, defensive anchor for any portfolio.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Finally, the Betashares Global Cash Flow Kings ETF takes a quality-first approach by investing in global stocks that generate strong, consistent free cash flow.

These are companies with the financial muscle to reinvest in growth, maintain dividends, and weather economic uncertainty. Its holdings include names such as Alphabet (NASDAQ: GOOGL), Palantir Technologies (NASDAQ: PLTR), and Visa (NYSE: V), which all produce significant excess cash beyond their operating needs.

This cash-centric strategy helps filter out speculative or unprofitable businesses, giving retirees exposure to global growth without unnecessary volatility. It was recently named as one to consider buying by analysts at Betashares.

The post 3 ASX ETFs perfect for retirees seeking peace of mind 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 Alphabet, Palantir Technologies, Visa, and Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé. The Motley Fool Australia has positions in and has recommended Telstra Group and iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended Alphabet, BHP Group, Vanguard Australian Shares High Yield ETF, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wilsons Advisory says the major pullback in ASX 200 tech shares has been overdone, and recommends buying two stocks right now.

As we reported last week, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is now 22% lower than its September peak.

The ASX 200 tech stock index hit a record 3,060.7 points on 19 September. On Friday, it closed at 2,370 points, down 22% in just 10 weeks.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has dipped by just 1.8% over the same period.

Here are the two ASX 200 tech shares that Wilsons Advisory recommends.

2 ASX 200 tech shares to buy now

Wilsons Advisory equity strategist Greg Burke says it’s mainly domestic factors putting a drag on ASX 200 tech shares of late.

In the meantime, he recommends we look for the opportunities. Helpfully, he names those opportunities in a new article.

Wilsons Advisory’s preferred large-cap ASX 200 tech shares are TechnologyOne Ltd (ASX: TNE) and Xero Ltd (ASX: XRO).

Why buy Xero shares?

Xero is an accounting Software-as-a-Service (SaaS) provider.

The Xero share price closed at $122.25 on Friday, down 0.73%.

The second-largest ASX 200 tech share has fallen 24.8% since 19 September and is down 27% in the year to date.

Burke notes that the market has been cautious on Xero’s acquisition of Melio, which he says is likely to remain loss-making in the medium term.

… we see the acquisition as strategically important.

Melio broadens XRO’s product offering, deepens its North American presence, and strengthens its ability to compete with Intuit Inc (NASDAQ: INTU), while also unlocking additional growth levers such as enhanced cross-sell opportunities.

Burke said Xero’s forward EV/EBITDA has “de-rated sharply” from about 38x in July to about 24x today – the lowest on record. 

He compares the value on offer with Xero shares versus US rival, Intuit, which owns the popular Quickbooks accounting program.

While XRO still trades at a ~20% premium to Intuit, this is materially below its two-year average of ~47% (since XRO’s profitability pivot).

Given XRO’s three-year EBITDA compound annual growth rate (CAGR) of 23% versus Intuit’s 14%, the market is currently assigning too small a premium, in our view.

Put another way, on a growth-adjusted basis, XRO appears undervalued relative to Intuit, with an EV/EBITDA-to-growth ratio of ~1.0x versus Intuit at ~1.4x.

Overall, with the growth story remaining firmly intact, XRO offers attractive value at current levels.

Why buy TechnologyOne shares?

TechnologyOne is also a SaaS provider but specialises in enterprise resource planning (ERP).

The TechnologyOne share price closed at $30.10 on Friday, down 0.07%.

The third-largest ASX 200 tech share has dropped 21.5% since 19 September and 1.7% in the year to date.

Burke says this presents “a rare opportunity to invest into one of the ASX’s highest-quality earnings compounders at a relatively attractive valuation”. 

The strategist explains:

The decline in TNE’s share price following its result largely reflects the correction of its supernormal valuation – with forward P/E having recently peaked at ~90x – leaving effectively no margin for even a very modest miss at reporting.

Most importantly, TNE continues to execute exceptionally well, and our conviction in the outlook remains as positive as ever. 

Ultimately, we believe TNE warrants a P/E premium to both its own history and IT peers, supported by structural improvements in its growth trajectory (now a high-teens EPS grower) and its earnings quality (now predominately recurring), as well as our confidence in management’s ability to deliver against consensus over the medium term.

Burke said Canaccord Genuity Research has a 12-month price target of $42.15 on TechnologyOne shares.

This implies a potential 40% upside for investors who buy today.

The post 2 ASX 200 tech shares to buy following sector sell-off appeared first on The Motley Fool Australia.

More reading

• These fantastic ASX 200 tech shares look far too cheap
• ASX 200 tech shares fight back after 10 weeks of decline
• Why today’s cheap ASX shares could double my money during the next bull market
• I’d listen to Warren Buffett’s advice to buy undervalued ASX shares today
• What’s driving the dramatic drop in ASX 200 tech shares?

Motley Fool contributor Bronwyn Allen 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 Intuit, Technology One, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The past year has not been kind to some of the ASX’s highest-quality technology shares.

Concerns over interest rates and warnings about an AI bubble have dragged several tech leaders sharply lower. But while prices have fallen, their underlying businesses remain strong, profitable, and positioned for long-term growth.

For investors willing to look beyond the short-term noise, three standout ASX 200 tech shares now look far too cheap relative to their long-term potential.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne shares have slipped 30% from their high, but the business itself has barely missed a beat. It continues to deliver double-digit recurring revenue growth, near-perfect customer retention, and expanding profit margins.

TechnologyOne’s software powers universities, councils, and government agencies across Australia, New Zealand, and the UK. These are customers that do not switch providers easily, which gives it one of the stickiest and most predictable revenue bases in the market. So much so, management is confident that it can double in size every five years.

Despite this, its share price has been dragged down by the broader tech selloff and appears to have created a very attractive buying opportunity for patient buy and hold investors. Especially given the long runway of cloud migration ahead. Overall, TechnologyOne looks far too cheap for a business of its quality.

WiseTech Global Ltd (ASX: WTC)

WiseTech shares have fallen a massive 46% from their high this year, despite the business continuing to win new customers, grow revenue, and expand globally.

WiseTech’s flagship product, CargoWise, is used by the world’s biggest freight forwarders, logistics groups, and supply chain operators. It is deeply embedded into customer workflows, which creates incredibly sticky, recurring revenue. Even during economic slowdowns, logistics networks still need mission-critical software.

The company has a long track record of compounding earnings, improving margins, and securing multi-year enterprise contracts. Very few ASX 200 tech shares enjoy this level of competitive dominance or profitability.

The share price, however, does not reflect that. But if sentiment toward tech rebounds in 2026, WiseTech could easily be one of the strongest performers on the market.

Xero Ltd (ASX: XRO)

Another ASX 200 tech share that has fallen heavily is Xero. Its shares are currently 38% below their 52-week high, even though the company continues to deliver strong growth and expand globally. Across Australia, New Zealand, the UK, and North America, Xero remains one of the most successful cloud accounting platforms in the world.

The company now generates more than NZ$2.7 billion in annualised monthly recurring revenue from 4.59 million subscribers, yet it has only penetrated a small portion of its estimated 100-million-business global addressable market. That is a huge runway for long-term expansion.

It has also made a major acquisition in the US, to support its expansion in that key market. Overall, for long-term investors, today’s lower share price may prove to be a gift.

The post These fantastic ASX 200 tech shares look far too cheap appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares fight back after 10 weeks of decline
• Top brokers name 3 ASX shares to buy next week
• Why today’s cheap ASX shares could double my money during the next bull market
• I’d listen to Warren Buffett’s advice to buy undervalued ASX shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With interest rates drifting lower and term deposit returns shrinking again, many income-focused Australians are wondering where to put their cash next.

While deposits offer safety, they rarely offer meaningful long-term returns, especially once inflation takes its slice.

For investors willing to move slightly up the risk curve, the Australian share market has plenty of reliable dividend payers that can deliver stronger income potential, along with the prospect of capital growth.

Three ASX dividend shares that could be good alternatives are named below:

HomeCo Daily Needs REIT (ASX: HDN)

If you are looking for dependable distributions, HomeCo Daily Needs REIT is one of the more attractive options on the market. It owns a high-quality portfolio of convenience-based shopping centres, anchored by major tenants such as the big two supermarket operators, along with pharmacies, medical centres, and essential retail.

These assets tend to hold up well regardless of economic conditions, which is exactly what income investors want. Even better, HomeCo Daily Needs REIT typically locks in long lease agreements with annual rent increases, helping keep its distribution profile consistent.

The consensus estimate is for the company to reward shareholders with a dividend increase to 8.7 cents per share in FY 2026. Based on its current share price of $1.35, this would mean a dividend yield of 6.4%.

Telstra Group Ltd (ASX: TLS)

Telstra has long been one of the most reliable ASX dividend shares. As the country’s largest telco, it benefits from stable cash flow generated by mobile, broadband, and network services. These are the kinds of services that Australians rely on every day.

While competition and price wars have created challenges over the years, the telco market appears rational at present and Telstra’s long-term strategy remains focused on higher-margin mobile products, network efficiency, and cost reductions. Its Connected Future 30 plan, which aims to deliver stronger long-term earnings, should be supportive of dividend growth in the coming years.

For now, analysts are expecting a 20 cents per share fully franked dividend in FY 2026. Based on the current Telstra share price of $4.92, this would mean a dividend yield of approximately 4.1%.

Woolworths Group Ltd (ASX: WOW)

Finally, supermarket giant Woolworths is another defensive dividend option worth considering. Even in tough economic conditions, consumers continue spending on essential groceries, fresh food, and household staples. This gives Woolworths consistent revenue, resilient margins, and significant pricing power.

The company’s strong balance sheet, market-leading position, and scale advantages support its ability to keep returning cash to shareholders.

And while Woolworths may not deliver the highest yield on the ASX, its reliability is what makes it an appealing alternative to low-return term deposits. You get a stable income stream, defensive characteristics, and long-term growth potential if its earnings continue to expand.

The market is expecting a fully franked dividend of 93.2 cents per share in FY 2026. This equates to a 3.2% dividend yield at current prices.

The post Forget term deposits and buy these ASX dividend shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths 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 positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index was down a fraction to 8,614.1 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for a decent start to the week following a positive finish to the last one on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points higher. In the United States, the Dow Jones was up 0.6%, the S&P 500 rose 0.55%, and the Nasdaq pushed 0.65% higher.

Oil prices ease

It could be a soft start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices eased on Friday night. According to Bloomberg, the WTI crude oil price was down 0.2% to US$58.55 a barrel and the Brent crude oil price was down 0.8% to US$62.38 a barrel. Russia and Ukraine peace talks have weighed on prices.

Metcash results

Metcash Ltd (ASX: MTS) shares will be on watch today when the wholesale distributor releases its first half results for FY 2026. According to a note out of UBS, it is expecting the company to report sales of $9.69 billion, underlying EBIT of $253.7 million, and a net profit of $136.1 million.

Gold price jumps

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could start the week strongly after the gold price jumped on Friday night. According to CNBC, the gold futures price was up 1.25% to US$4,254.9 an ounce. This was driven by expectations that the US Federal Reserve will cut interest rates this month.

Buy Hub24 shares

Bell Potter thinks that Hub24 Ltd (ASX: HUB) shares could be in the buy zone today. This morning, the broker has retained its buy rating on the investment platform provider’s shares with a trimmed price target of $125.00. It said: “Negative surprise in the expense guidance, but we left confident in the growth outlook and cadence over peers. More than mitigated from scale and entrenches customers in line with our initial thesis. Adviser efficiency has historically benefitted flows/valuation.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

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• $10,000 invested in Woodside shares 4 years ago is now worth…

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

As of the end of trading on Tuesday, Nvidia (NASDAQ: NVDA) boasted a market capitalization of about $4.3 trillion.

While shares of the semiconductor giant have soared by 1,000% throughout the artificial intelligence (AI) revolution, Beth Kindig of the I/O Fund thinks Nvidia’s rally is just getting started. In a recent investor note, Kindig outlined a path by which she believes Nvidia could reach a market cap of $20 trillion by 2030 — implying an upside of about 360% from current levels.

Below, I’ll explain what it will take for Nvidia to reach such a historic milestone and detail the catalysts that support even greater gains for the chip leader.

What would it take for Nvidia to reach a $20 trillion valuation?

Nvidia’s largest source of revenue is sales of its products to data centers, which make heavy use of its GPUs and complementary networking services.

In its fiscal 2026 third quarter, which ended Oct. 26, the company’s data center business generated $51.2 billion in revenue — implying an annual run rate of about $200 billion.

Kindig is modeling for Nvidia’s data center business to grow at a compound annual rate of 36% between 2025 and 2030. If that assumption proves accurate, that data center business would reach a $931 billion run rate by the end of that period.

From there, Kindig simply applies Nvidia’s five-year median price-to-sales (P/S) ratio of 25 to her figure for its expected data center revenue — which yields a market cap well north of $20 trillion.

The math is pretty straightforward. The more important details relate to why Kindig is so bullish on Nvidia’s prospects through the rest of the decade. 

How can Nvidia realistically become a $20 trillion company?

If you follow the AI narrative, you’ve probably heard quite a bit about the accelerating investments into data center infrastructure.

Research from Goldman Sachs suggests that by next year, hyperscalers including Microsoft, Alphabet, Amazon, and Meta Platforms will spend nearly $500 billion on AI infrastructure. To underscore the level of demand these companies are experiencing for AI-capable data center capacity, this expected acceleration in infrastructure spend represents more than a 50% increase in capital expenditures (capex) in just one year.

AMZN Capital Expenditures (TTM) data by YCharts.

Taking this one step further, McKinsey & Company is forecasting AI infrastructure to be a $7 trillion market opportunity over the next five years. More importantly, McKinsey is modeling for about $5 trillion of this spending will be allocated toward supporting AI workloads. Translation: Demand for Nvidia’s GPUs should remain incredibly robust for the foreseeable future.

This helps explain the scope of the broader AI infrastructure opportunity. But we can also look at a host of individual deals that benefit Nvidia directly, among them:

• In September, OpenAI announced its intention to deploy 10 gigawatts of Nvidia’s systems to help train its next-generation models. As part of the deal, Nvidia plans to invest up to $100 billion into OpenAI.
• In early November, OpenAI signed a $38 billion chip deal with Amazon Web Services (AWS). Per the terms of the partnership, Amazon will be renting clusters of Nvidia GPUs to OpenAI.
• A budding segment of the data center market called “neocloud” is rapidly gaining popularity with big tech players. Neocloud companies such as Nebius Group and Iren build their own data centers outfitted with Nvidia’s high-end hardware, and rent direct access to their servers under a model described as “bare metal as a service.”
• Following President Donald Trump’s inauguration in January, OpenAI, Oracle, and SoftBank announced a joint venture called Project Stargate — an ambitious plan to invest $500 billion into AI infrastructure in the U.S. over the next four years.

Nvidia looks poised to dominate the AI infrastructure revolution

The biggest risk I see to Kindig’s forecast is that it is based in part on the premise that Nvidia will not only maintain its current market share, but actually increase it. For Nvidia to meet her estimated growth rates, Kindig believes that it will need to capture about 60% of the AI capex spending over the rest of the decade. Today, Nvidia is drawing about 50% of AI infrastructure spending.

Admittedly, expanding its market share by another 10 percentage points would be a tall order. However, I think there are some factors here that mitigate the downside risk.

First, Nvidia’s current order backlog of $307 billion primarily revolves around the following product lines: its current Blackwell chips, its upcoming Rubin GPUs, as well data center services NVLink and InfiniBand. In the chart below, investors can see that Wall Street’s consensus calls for $312 billion of revenue for Nvidia’s entire business next year. In my view, analysts could be underestimating the incremental demand for Nvidia’s CUDA software platform, adjacent networking equipment, and other products within the company’s broader suite.

NVDA Revenue Estimates for Next Fiscal Year data by YCharts.

In addition, Nvidia is entering new markets, most notably AI telecommunications through a strategic investment in Nokia. It’s also entering into a collaboration under which Intel will design custom CPUs for Nvidia to integrate into its AI infrastructure platforms and GPU products.

Moreover, Kindig’s forecast doesn’t even account for the potential demand for GPUs from emerging applications in robotics, agentic AI, or autonomous systems.

Taken together, these investments and new markets represent additional trillions of dollars in incremental addressable market opportunities for Nvidia.

I expect Nvidia’s biggest challenge will be consistently balancing the dynamics of supply and demand. Thankfully, Nvidia’s fabrication partner, Taiwan Semiconductor Manufacturing, has been expanding its foundry footprint and building out additional production capacity, which should help mitigate supply chain bottlenecks.

With this in mind, I think Nvidia is more than well positioned to dominate the AI infrastructure era, and could be the first company to achieve a $20 trillion market value.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 1 unstoppable artificial intelligence (AI) stock to buy before it soars more than 300%, according to a Wall Street analyst appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Goldman Sachs Group, Intel, Meta Platforms, Microsoft, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short November 2025 $21 puts on Intel. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While the market has been choppy this year, long-term investors know volatility often creates opportunity.

If your time horizon stretches well beyond the end of this decade, some of the most powerful megatrends in technology, digital assets, and innovation could deliver exceptional growth.

One of the simplest ways to tap into those opportunities is through exchange-traded funds (ETFs).

With a single purchase, you can gain access to dozens of high-growth stocks that are shaping the next era of the global economy.

Here are three ASX ETFs that stand out for investors seeking explosive long-term growth.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

For investors who want exposure to Australia’s best technology stocks, the BetaShares S&P/ASX Australian Technology ETF could be the go-to option. It captures a portfolio of homegrown innovators positioned to benefit from digital transformation, cloud adoption, automation, and high-performance computing.

This ASX ETF’s holdings include market leaders such as WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO) and NextDC Ltd (ASX: NXT). These companies continue to expand internationally and dominate their respective niches in logistics software, small business accounting and data centre infrastructure.

For investors who want pure exposure to the ASX tech sector, this fund remains one of the best options available. It was recently named as one to consider buying by analysts at Betashares.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The BetaShares Crypto Innovators ETF is certainly not for the faint-hearted. But for long-term investors with a tolerance for volatility, it offers exposure to one of the fastest-growing technology frontiers: digital assets.

Instead of holding cryptocurrencies directly, this ASX ETF invests in stocks that are building the infrastructure of the crypto ecosystem.

Its holdings include Coinbase Global (NASDAQ: COIN), Marathon Digital Holdings (NASDAQ: MARA) and Hut 8 Mining (NASDAQ: HUT). These companies form the backbone of crypto trading, blockchain validation, and digital transaction networks.

Coinbase is particularly interesting. As regulatory clarity improves and mainstream adoption increases, it stands to benefit from higher trading volumes, institutional participation, and the broader expansion of the digital asset economy.

For investors aiming for explosive upside, it could be a compelling long-term pick.

BetaShares Australian Momentum ETF (ASX: MTUM)

Finally, the BetaShares Australian Momentum ETF takes a unique approach by investing in Australian stocks that are showing strong share price momentum. This rules-based strategy captures the market’s current leaders.

At present, the ASX ETF includes stocks such as Qantas Airways Ltd (ASX: QAN), Coles Group Ltd (ASX: COL) and Wesfarmers Ltd (ASX: WES).

Momentum strategies have historically outperformed over long periods by consistently rotating into whichever sectors and stocks are delivering the strongest returns. This gives the fund an important advantage: it adapts automatically. As new leaders emerge, the ETF adjusts its holdings accordingly.

For investors seeking a dynamic, performance-driven strategy, this is arguably one of the most interesting ETFs on the ASX. It was also recommended by analysts at Betashares.

The post 3 ASX ETFs to buy now for explosive long-term growth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Coinbase Global. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With December just around the corner, it’s a great time to take stock of our investing markets and check out which ASX shares look ripe to add to a stock portfolio. Despite a rebound last week, the markets are still down from their October records.  I thought it would be a great opportunity to check out some Australian dividend stocks.

So today, let’s talk about five ASX dividend stocks that I think would serve an income-focused portfolio well right now.

Five Australian dividend stocks to put under the tree this December

Coles Group Ltd (ASX: COL)

I’ve long thought of Coles as a winning Australian dividend stock. For one, it offers a defensive nature as a price-focused provider of food and household essentials. For another, it has a strong income track record, having delivered an annual dividend increase every year since 2018.

Coles shares did go on a big run this year, but have since pulled back. That’s boosted this dividend stock’s yield back over 3% at recent pricing. Coles shares have historically come with full franking credits attached too.

Australian Foundation Investment Co Ltd (ASX: AFI)

AFIC is a listed investment company (LIC) and Australian dividend stock that has been on the ASX for decades. Over this time, investors have come to appreciate this stock’s conservative investing style, which AFIC uses to manage a vast underlying portfolio of Australian blue chips, complemented by some international shares.

AFIC already trades on an attractive (and fully franked) yield of around 3.7%, but has recently confirmed that investors will enjoy two special dividends over 2026.

Telstra Group Ltd (ASX: TLS)

I think Telstra offers income investors many of the desirable attributes that Coles does. The mobile and internet services that Telstra provides are essential in today’s world, and Telstra has a long-held leading position in providing them across the Australian market.

This legendary Australian dividend stock has long been an income staple for good reason. Today, it offers a decent dividend yield of 3.88%, which has also always come fully franked.

MFF Capital Investments Ltd (ASX: MFF)

There aren’t too many ways ASX investors can invest in US stocks and get a fully franked dividend. But this LIC is one of them. Like AFIC, MFF holds an underlying portfolio of shares that it manages on behalf of its investors. Unlike AFIC, though, MFF mostly invests in US stocks, following a Buffett-inspired playbook of buying quality companies at compelling prices and holding them indefinitely. Some of its long-term holdings include Amazon, Mastercard, Alphabet, and Visa.

Since MFF is domiciled in Australia, though, it pays tax here and thus has the capacity to fully frank its dividends. At present, this dividend stock is trading on a yield of about 3.5%.

Wesfarmers Ltd (ASX: WES)

Our final Australian dividend stock today is another income favourite in Wesfarmers. This company’s strength arguably comes from its diversity. It is most famous for its highly successful retailers like Bunnings and Kmart. But Wesfarmers also owns a wide range of other businesses, spanning from healthcare and mineral processing to fertilisers and chemicals.

Wesfarmers has a stellar track record of delivering both growth and rising dividends for shareholders over many decades. Today, its shares trade with a fully franked yield of about 2.5%.

The post 5 best Australian dividend stocks to buy in December appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Mastercard, Mff Capital Investments, Visa, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Visa, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Mff Capital Investments, Visa, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.