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.

More reading

• 11 ASX 200 shares with reaffirmed buy ratings post-results
• How to invest in quantum computing on the ASX
• Want to invest in AI shares? Here’s how to do it on the ASX
• Buy, hold, sell: Boss Energy, Magellan, and NextDC shares
• 5 ASX 200 shares with 33% to 61% upside post-results: experts

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.

More reading

• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday

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.

More reading

• These are the most popular ASX ETFs – Which has performed best in 2026?
• ASX shares investors are getting younger and trading more often: CBA report
• How much passive income can I earn off a $630,000 superannuation balance
• Are these 3 top Betashares ETFs a buy in September?
• How to build an ASX portfolio you do not need to check every day

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.