AI shares are among the hardest things to buy on the Australian market, because the obvious names are all listed somewhere else.

For example, there is no ASX-listed Nvidia Corp (NASDAQ: NVDA)

That does not mean Australian investors are locked out.

How to buy AI shares on the ASX

There are three sensible routes.

You can own the infrastructure that artificial intelligence runs on, you can own a business using the technology to widen its own moat, or you can buy a global fund listed here.

Each carries a different risk, and the mistake most investors make is treating them as interchangeable.

The infrastructure AI shares

NextDC Ltd (ASX: NXT) is the purest local play on computing demand.

The company’s FY26 result delivered net revenue of $405.0 million, up 16%, and underlying EBITDA of $248.8 million.

The number that really matters is contracted utilisation, which more than tripled to 740.1 megawatts against built capacity of just 288 megawatts.

Hyperscale and artificial intelligence workloads now account for 95% of contracted megawatts.

FY27 guidance is for revenue of $615 million to $640 million.

The risk is written into the same document.

Capital expenditure guidance for FY27 was between $5.25 billion to $5.75 billion, against a market capitalisation of $10.49 billion.

NextDC shares closed Monday at $13.23 and have fallen 19.66% over twelve months.

Goodman Group (ASX: GMG) is the larger and steadier version of the same theme.

Its FY26 operating profit rose 15.7% to $2,675 million, with operating earnings per security up 10.1% to 129.9 cents.

Data centres are now roughly $15.4 billion of work in progress, or 78% of the total.

The group controls a global power bank of 6.4 gigawatts across 16 cities, with management guiding to 9% operating earnings per security growth in FY27.

The AI shares that use the technology

Pro Medicus Ltd (ASX: PME) is not usually filed under artificial intelligence, but it probably should be.

Its Visage platform is where radiology algorithms have to run, and FY26 revenue grew 28.4% to $261.7 million on an underlying EBIT margin of 74.9%.

The company signed $407 million of new contracts across ten deals and retained 100% of renewals at higher fees.

Forward contracted revenue now stands at $1.34 billion over five years.

The stock’s valuation is the primary argument against it.

Pro Medicus trades on a price-to-earnings ratio of 72 at $176.42, and the shares have still fallen 40.99% over the past year.

That fall tells you how brutally the market punishes any wobble in a stock priced this way.

The simplest option of all

Global X Artificial Intelligence ETF (ASX: GXAI) solves the geography problem in a single trade, and is the fastest way to add AI shares exposure to an Australian portfolio.

The ETF tracks the Indxx Artificial Intelligence and Big Data Index across more than 100 companies, with Palantir Technologies Inc (NASDAQ: PLTR), Microsoft Corp (NASDAQ: MSFT) and Oracle Corporation (NYSE: ORCL) among its largest weights.

The ETF’s management fee is 0.57% a year, and the fund held roughly $271 million in assets as at 28 August 2026.

Foolish takeaway

I would not build a portfolio out of only one of these shares and ETFs.

NextDC gives you the cleanest exposure and carries the heaviest capital risk.

Goodman offers the same theme inside an ASX 200 business that actually pays a distribution.

Pro Medicus is the highest quality of the three and comfortably the most expensive.

For most investors, a global ETF alongside one or two local names is the best way to own AI shares while limiting downside risk.

The post Want to invest in AI shares? Here’s how to do it on the ASX 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 Goodman Group, Microsoft, Nvidia, Oracle, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Goodman Group, Microsoft, Nvidia, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend shares have spent a decade winning the argument that they could yield more than cash. But that is no longer quite true.

Commonwealth Bank (ASX: CBA) is advertising a 12-month term deposit special of 5.15%, whilst Australia’s 10-year government bond yield reached around 5.19% on Tuesday, its highest level in 15 years.

The Reserve Bank has held the cash rate at 4.35% since May.

Suddenly, doing nothing pays something.

What cash actually pays right now

CommBank’s standard 12-month rate is 4.75%, with a 5.15% special offer available for a limited time.

Shorter terms pay considerably less, at 3.30% for three months and 3.45% for six.

In contrast, Betashares Australian High Interest Cash ETF (ASX: AAA) is the listed alternative.

The ETF holds nothing but deposits with banks, including National Australia Bank (ASX: NAB), Bank of Queensland (ASX: BOQ) and Rabobank, charges 0.18% a year, and currently offers a cash yield net of fees of 4.43%.

Income is paid monthly, and the fund holds roughly $4.9 billion.

The trade-off is a slightly lower rate in exchange for never locking your money away.

What ASX dividend shares pay after tax

This is where the comparison gets interesting.

Vanguard Australian Shares High Yield ETF (ASX: VHY) holds 92 companies led by the major banks and BHP.

Vanguard forecasts a yield of 4.2%, rising to 5.5% once franking credits are counted.

Units closed Monday at $85.61.

On the headline number, the term deposit wins comfortably.

A rate of 5.15% beats 4.2%, and it does so without any chance of losing your capital.

Franking is the thing that changes the maths.

Consider an investor on a 39% marginal rate including the Medicare levy.

The term deposit returns roughly 3.14% after tax.

VHY delivers about 3.36%, because franking credits offset most of the tax on the grossed-up income.

In pension phase, where those credits are fully refundable, VHY returns 5.5% against the term deposit’s 5.15%.

Why the margin is thinner than it looks

Two or three tenths of a percentage point is not much reward for taking equity risk.

A term deposit cannot fall in value, but VHY certainly can.

The fund is also heavily concentrated in banks and resources, which are the sectors most exposed to a rate rise.

ANZ Group Holdings Ltd (ASX: ANZ) now expects the Reserve Bank to lift the cash rate to 4.60% in November, and a higher cash rate would push term deposit offers higher again.

The real case for ASX dividend shares

Yield is the wrong reason to own ASX dividend shares at these rates.

Instead, growth is the right reason.

A term deposit pays 5.15% this year and an unknown number next year, but it will never pay you more than the rate you agreed to on the day you signed.

A dividend from a growing business rises over time, and the capital behind it can rise with it.

APA Group (ASX: APA) has now raised its distribution for 22 consecutive years, which no deposit product on earth can match.

Foolish takeaway

If you need the money within two years, take the term deposit.

The certainty is worth more than two tenths of a percentage point.

If you are investing for a decade or more, ASX dividend shares still make more sense, though for reasons that have nothing to do with beating cash this year.

The underlying truth is that cash has become a genuine competitor again.

The post Term deposits are paying more than ever. Are ASX dividend shares still worth it? 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Finding ASX shares capable of producing market-beating returns isn’t easy, particularly when valuations remain elevated. But some brokers see significant upside in these two growth companies over the next year.

Both Mesoblast Ltd (ASX: MSB) and Zip Co Ltd (ASX: ZIP) have faced different challenges, but analysts believe their growth prospects could translate into substantial share price gains.

Mesoblast: strong sales growth and a well-funded outlook

The clinical-stage biotech has had a sluggish start to 2026. Mesoblast shares currently trade at $2.34, down 14% year to date but still 10% higher than they were 12 months ago.

The weakness appears to reflect greater investor caution around clinical timelines, alongside some profit-taking following last year’s strong rally.

Mesoblast develops and commercialises allogeneic cellular medicines for complex diseases. Some of its products are already in use, while other cell therapies are progressing through late-stage clinical trials.

Its Ryoncil product is gaining traction, while the company remains well funded. Brokers are also optimistic that sales can continue growing strongly in FY27.

TradingView data shows all five analysts covering the ASX shares rate them a strong buy. Their average price target of $4.08 implies potential upside of approximately 75%.

Bell Potter recently said Mesoblast’s latest results were broadly in line with expectations. The broker sees continued double-digit growth from Ryoncil, alongside major potential catalysts from Rexlemestrocel in heart failure and chronic lower back pain.

Bell Potter has a buy rating and a $4.45 price target, implying around 90% potential upside.

Zip: US as main attraction

Zip is a fintech providing buy now, pay later and digital payment services to consumers and merchants. Its rapidly expanding US business is the key attraction.

The US accounted for around two-thirds of Zip’s revenue in FY26, with total revenue increasing 24.7%. US revenue surged 37.3% in Australian dollar terms and 44.3% in US dollar terms, compared with just 4.6% growth in ANZ.

The US is also driving customer growth. Active US customers rose 9.3% to 4.65 million, while ANZ customers fell 8% to 1.88 million. For FY27, Zip expects US total transaction value to increase by more than 30%.

Importantly, profitability is growing faster than revenue. Cash gross profit increased 26.2% to $642.3 million, while cash operating profit jumped 57.9% to $268.9 million.

Analysts are particularly bullish. TradingView data shows all 13 analysts rate Zip a buy or strong buy. The average $4.52 price target suggests around 72% upside, while the most bullish target of $6.03 implies potential gains of roughly 130%.

UBS recently maintained its buy rating and $4.70 target, implying around 79% upside. Macquarie also has a buy rating, although its $3.50 target is considerably more conservative.

For investors hunting for ASX growth shares, both companies have significant potential, but that potential comes with materially higher risk than established blue-chip stocks.

The post Experts tip these $3 billion ASX shares to deliver over 75% returns appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Challenger, APA Group, Mesoblast shares
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• Why now is the time to buy low on these ASX healthcare shares with up to 84% upside

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.