Tag: Stock pick

From a quiet entrant on the Australian stock exchange, this ASX gold stock has suddenly found itself in the spotlight. The share price of Greatland Resources Ltd (ASX: GGP) has soared 89% in the past 4 months to $9.27 at the time of writing.

Like many gold shares, the gold and copper producer has benefited from commodity price gains and defensive investor sentiment. 

In the past 12 months the ASX gold stock increased its share value by 40.5%. By comparison, the S&P/ASX 200 Index (ASX: XJO) rose by 3.7% over the same period.

Robust gold and copper output

What’s behind the rally of the $6 billion miner? A mix of solid production numbers, strong commodity prices, and a string of positive catalysts has flipped sentiment.

Recent quarterly updates showed robust gold and copper output, underpinning the company’s turnaround from a loss-making to profitable enterprise.

Greatland isn’t just another gold explorer. The ASX gold stock is a gold and copper producer and developer with real muscle in Western Australia’s Paterson Province. This is home to the giant Telfer gold-copper mine and Greatland’s ambitious Havieron gold-copper project just down the road.

From hopeful to promising producer

After completing its takeover of Telfer and pressing ahead with Havieron feasibility work, Greatland transformed from exploration hopeful to mid-tier producer almost overnight. That evolution has fuelled investor interest and pushed shares toward fresh highs.

Earlier this month, the company released the feasibility study for the project.

It highlighted:

The results of the study are robust, generating an IRR [internal rate of return] of 22.5% at a long term $4,500 per ounce gold price. At a long term price equal to the current spot gold price, this rises to 31.5% IRR.

If the company delivers on its production guidance, brings Havieron online and commodity prices stay buoyant, this ASX gold stock could continue to outperform.

Is there more to come?

Analysts are positive on the outlook for the retailer. It looks like even after this year’s share price rally, any stock purchased right now can still benefit from a profit. 

TradingView data shows that most analysts recommend a hold or (strong) buy. Some expect the ASX 200 stock to climb as high as $13, which implies a 40% upside at the time of writing.

However, the average share price target for the next 12 months is $10.02. That still suggests a possible gain of 8%.   

Macquarie has an outperform rating on Greatland shares and a 12-month price target of $10.50, for a 13.3% return from current levels.

The post Can this ASX gold stock keep surging after hitting fresh highs? appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares lead the market for a second week
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• ASX 200 mining shares outperform as iron ore and copper prices strengthen
• 4 ASX 200 stocks smashing the benchmark this week

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 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 Electro Optic Systems Ltd (ASX: EOS) share price closed at $7.53 on Tuesday. This follows a remarkable run, with the stock surging nearly 30% on Monday and climbing another 16% in Tuesday’s session. For a company that many investors had written off earlier this year, EOS is now shaping up as one of the most compelling turnaround stories on the ASX.

And after looking at the numbers, I think a $1,000 investment today could look very different by December 2026.

A business that is finally being priced like a real defence company

EOS currently carries a market cap of only $1.45 billion. For a global defence contractor supplying cutting-edge counter-drone systems, high-energy laser weapons and advanced remote weapon stations, that valuation already looks light.

But here is where it gets interesting.

EOS has a secured order backlog of around $534 million. That is not potential future business. That is contracted revenue that must be delivered over the next couple of years.

So, the company already has more than one-third of its entire market value sitting in locked-in contracts. For a defence stock, that kind of ratio is extremely rare. Most global defence players trade at multiples far above their backlog because investors pay for stability, visibility and long-term demand.

However, EOS is not being priced like that yet.

The contract win that lit the fuse

This week, EOS announced a conditional US$80 million high-energy laser contract with South Korea, its second export order for a 100kW class laser weapon. The deal includes manufacturing, licensing and a joint venture that positions EOS to supply Korea’s expanding defence ecosystem.

This alone is a game-changing contract. It increases global credibility, supports scale in laser manufacturing and opens the door for repeat orders.

It also explains why the share price exploded.

But the bigger story is what could be coming next.

The Middle East opportunity that could redefine EOS

For months, EOS has been shortlisted for a potential $500 million Middle Eastern defence program. Management has openly confirmed that negotiations are progressing and that the customer is evaluating EOS technology for large-scale counter-drone deployments.

If that contract lands and discussions appear to be moving forward, EOS’s backlog could instantly double and the market would have to rethink its valuation.

A $500 million contract on top of a $534 million backlog would be transformative. It would also push multi-year revenue visibility far beyond what investors typically expect from a company worth just $1.45 billion.

Why the next two years could be explosive

EOS is benefiting from massive global demand for counter-drone systems, an area where the company has positioned itself as a world leader. Recent field tests, customer demonstrations and the company’s new advanced manufacturing facility in Singapore, all point toward accelerating production and delivery.

The company also confirmed in today’s webinar that Australia’s LAND 156 counter-drone program is exploring the use of technology from EOS’s newly acquired subsidiary. That adds another potential domestic win.

Meanwhile, laser weapons are quickly becoming a priority for NATO countries, and EOS is one of the few companies in the world with a deployable 100kW system already tested, trialled and contracted.

Foolish takeaway

EOS is still valued like a niche tech company, yet it is now securing deals you normally see from far bigger defence companies. A backlog covering more than 33% of its market value, a pipeline that includes a potential $500 million mega-contract and a technology suite that is attracting governments worldwide all point to one conclusion.

If management keeps executing, a $1,000 investment today could look very small by December 2026. In fact, I believe this could triple if the stars align for EOS.

And based on everything that’s unfolding right now, it may only be the beginning.

The post By December 2026, $1,000 invested in EOS shares could be worth… appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 300 defence stock has already rocketed 51% this week (Hint, not DroneShield)
• Why 4DMedical, DroneShield, EOS, and Star shares are rising today
• Why it isn’t too late to buy Electro Optic Systems (EOS) shares
• 5 things to watch on the ASX 200 on Tuesday
• Why 4DMedical, EOS, Gorilla Gold, and Neuren shares are racing higher today

Motley Fool contributor Aaron Teboneras owns Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped into the red. The benchmark index fell 0.4% to 8,598.9 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall on Wednesday following another poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.15% lower this morning. In late trade in the United States, the Dow Jones is down 0.7%, the S&P 500 fell 0.4%, and the Nasdaq is down 0.15%.

Oil prices sink

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult session after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 2.7% to US$55.30 a barrel and the Brent crude oil price is down 2.6% to US$58.96 a barrel. This was driven by Russia-Ukraine peace talk optimism and means oil prices are trading at their lowest levels since 2021.

Treasury Wine update

Treasury Wine Estates Ltd (ASX: TWE) shares will be on watch on Wednesday when the wine giant releases an update on its outlook. Earlier this week, it requested a trading halt until the update has been made. It said: “As disclosed to the market, TWE will hold an investor and analyst call on Wednesday, 17 December 2025. The Company is in the final stages of preparing for this update, which will include information regarding the Company’s outlook.”

Gold price edges higher

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Wednesday after the gold price edged higher overnight. According to CNBC, the gold futures price is up slightly to US$4,337.5 an ounce. The precious metal rose in response to weak US economic data.

Buy Ausgold shares

The team at Bell Potter thinks that Ausgold Ltd (ASX: AUC) shares are being undervalued by the market. This morning, the broker has put a speculative buy rating and $1.70 price target on the gold developer’s shares. It said: “AUC’s management team has a demonstrated track record of advancing assets from exploration through development, positioning the company to unlock substantial value as the KGP [Katanning Gold Project] de-risks toward production.”

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

More reading

• Here are the top 10 ASX 200 shares today
• Up 143% in 2025, ASX All Ords gold stock announces 82,000-ounce gold boost
• DroneShield bags $49.6m European military contract: What investors need to know
• Meridian Energy lifts hydro storage and sales in November 2025 update
• Contact Energy reports lift in November sales and renewable projects progress

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

Predictive Discovery Ltd (ASX: PDI) shares closed 4.93% lower on Tuesday afternoon, at 68 cents a piece. 

The latest dip has barely dented gains made over the past year though. Predictive Discovery shares have rocketed 64.63% higher over the past 6 months and are now a huge 193.48% higher than this time last year.

For context, the S&P/ASX 200 Index (ASX: XJO) closed 0.42% lower on Tuesday afternoon. For the year the index is 4.24% higher.

What does Predictive Discovery do?

Predictive Discovery is a gold exploration company concentrated on finding and developing major gold deposits in Guinea, West Africa. The miner is focused on turning its flagship Bankan Gold Project into a Tier-1 African gold mine as well as exploring for other gold deposits within the highly prospective Bankan permits.

The miner’s Environmental and Social Impact Assessment (ESIA) was approved in January 2025 and the Certificate of Environmental Compliance (ECC) was issued. 

What has driven the ASX gold miner’s share price higher this year?

Predictive Discovery completed a Definitive Feasibility Study (DFS) for the Bankan Gold Project in June. According to the company, the study confirms that its Bankan Gold Project is a rare gold asset, with large-scale, a long-life production profile, robust margins, and the ability to generate strong returns through the cycle. 

The miner’s shares have recently been boosted by a takeover bidding war. In October, the company announced a merger with fellow Robex Resources (ASX: RXR) but the merger was challenged by a superior bid from Perseus Mining (ASX: PRU) in early December 2025. Robex, however, successfully exercised its matching rights and Predictive Discovery accepted a revised Robex deal last week. This ended Perseus’s bid and confirmed the Robex merger. 

It’s possible that some investors were counting on a bidding war breaking out between Perseus and fellow suitor Robex Resources, but now it has been resolved it has caused the latest share price slump.

What’s ahead for Predictive Discovery?

While the exciting bidding war has come to an end, there is still plenty of potential ahead for the ASX gold miner.

The amended Robex deal could help to strengthen the medium to long-term value for Predictive Discovery shareholders. The merged entity could boost potential production and also gain higher visibility in key investment indices like the ASX 200 and VanEck Junior Gold Miners.

Analysts are also bullish that there is a robust upside ahead for the ASX gold miner’s shares. Data shows that 3 out of 4 analysts have a strong buy rating on the stock with a target price as high as $1 per share. At the time of writing, that implies a potential 48.15% upside ahead for investors over the next 12 months.

The post This ASX gold miner’s shares have exploded nearly 200% since last year, and there’s more upside ahead appeared first on The Motley Fool Australia.

More reading

• Why Chalice Mining, Predictive Discovery, Premier Investments, and St Barbara shares are sinking today
• Perseus Mining ends Predictive Discovery takeover bid
• Predictive Discovery updates market on amended Robex merger
• Should we be paying more attention to these two rocketing ASX small-cap mining stocks?
• Why 4DMedical, Dateline, Predictive Discovery, and Wildcat shares are racing higher

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 S&P/ASX 300 Index (ASX: XKO) has lost 1.2% over the first two days of trade this week, despite the best lifting efforts of this rocketing ASX 300 defence stock.

And no, it’s not DroneShield Ltd (ASX: DRO). Though DroneShield shares come in a close second, having already gained 35.8% this week following the announcement of a new contract order.

Instead, the rocketing company in question is remote weapon systems developer Electro Optic Systems Holdings Ltd (ASX: EOS).

Electro Optic Systems shares closed last Friday trading for $5.01. When the closing bell sounded on Tuesday, shares were swapping hands for $7.56 apiece.

That sees shares in the ASX 300 defence stock up a whopping 50.9%. In just two days.

And investors who bought EOS shares 12 months ago, when the stock was trading for $1.05, are now sitting on gains of 620.0%. Or enough to turn an $8,000 investment into $57,600.

Boom!

Now, here’s what just sent the Electro Optic Systems share price rocketing again this week.

ASX 300 defence stock inks new laser weapons deal

Laser weapons have well and truly moved from Hollywood fantasy to real world reality. And Electro Optic Systems is helping supercharge their development.

On Monday, the ASX 300 defence stock closed up 28.9% after announcing it had signed an agreement to supply a 100kW laser weapon to an undisclosed South Korean customer.

The binding conditional contract was valued at US$80 million (AU$120 million). The two parties also agreed to establish a joint venture in the country.

“The EOS laser weapon development program included three years of field testing and numerous firing trials of the laser in close collaboration with customers,” management said. “To ensure high performance, it is supplied with algorithms, radar, threat detection, target acquisition and beam locking systems.”

And demand for the new high energy laser appears to be growing.

Management added:

This conditional contract represents EOS’ second export order for a 100kW class laser defence system and follows a first export order to a Western European customer, announced on 5 August 2025.

Is it too late to buy Electro Optic Systems shares?

After surging 620% in a year, is it too late to buy the ASX 300 defence stock?

Not according to the analysts at Bell Potter.

Following on Monday’s US$80 million laser weapon sales announcement, the broker noted, “We view this award as further evidence of the significant revenue opportunity available to EOS from the directed energy counter-drone (C-UAS) vertical.”

Bell Potter increased its price target on Electro Optic Systems shares from $8.10 to $9.00.

That represents a potential further upside of 19% from Tuesday’s closing price.

The post Guess which ASX 300 defence stock has already rocketed 51% this week (Hint, not DroneShield) appeared first on The Motley Fool Australia.

More reading

• By December 2026, $1,000 invested in EOS shares could be worth…
• Here are the top 10 ASX 200 shares today
• Why 4DMedical, DroneShield, EOS, and Star shares are rising today
• Why it isn’t too late to buy Electro Optic Systems (EOS) shares
• Why are DroneShield shares jumping 20% today?

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 positions in and has recommended DroneShield and Electro Optic Systems. 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 ASX has spent most of 2025 swinging between optimism and anxiety, with inflation scares, rate hike speculation, and an AI-driven tech wobble keeping investors on edge.

But beneath is a rare opportunity to buy several high-quality ASX 200 blue chip shares at meaningful discounts.

Here are three bargains I’d be buying today.

CSL Ltd (ASX: CSL)

CSL is rarely cheap. For most of the last decade, the biotech giant traded at a premium thanks to its global leadership in plasma therapies, vaccines, and emerging specialty medicines. But 2025 has been an unusually bumpy year. Slower margin recovery at CSL Behring, uncertainty around the Seqirus spin-off, falling influenza vaccine rates, and concerns about potential US tariff impacts have pushed its share price down by over a third.

What hasn’t changed is the company’s long-term earnings power. Plasma collection volumes are rising, CSL’s R&D engine remains strong, and its therapy pipeline is expanding.

Trading on a valuation rarely seen for CSL, for long-term investors this could be a buying opportunity that doesn’t come around very often.

Macquarie Group Ltd (ASX: MQG)

Macquarie’s reputation as Australia’s financial powerhouse wasn’t built on smooth economic cycles. It was built through the company’s ability to generate growing profits whatever the market throws at it.

That’s why the current weakness in its share price, is looking like an opportunity. Macquarie has four engines: asset management, banking, commodities, and investment banking. When one slows, another usually accelerates. The company has also positioned itself for the next decade through investments in renewables, digital infrastructure, and global energy transition assets.

For investors with patience, buying Macquarie during periods of temporary earnings softness has historically paid off handsomely. I believe the same could happen for investors buying at today’s levels.

Woolworths Group Ltd (ASX: WOW)

Finally, I think Woolworths has quietly become one of the more attractive large-cap opportunities on the ASX after a challenging 12 months. The retailer has been under pressure due to consumers trading down, competition from Coles Group Ltd (ASX: COL), and higher operating costs. But these headwinds are cyclical, not structural.

Woolworths still owns one of the most defensible business models in the country. Food and essentials spending remain remarkably resilient, and it continues to grow its digital footprint, loyalty program, and supply-chain efficiencies.

So, with the share price sitting well below its 52-week high and margins set to recover as cost pressures ease, Woolworths could be a top blue chip pick in the current market.

The post CSL and more blue-chip ASX 200 bargains I’d buy before 2026 appeared first on The Motley Fool Australia.

More reading

• Macquarie names its top 4 ASX REITs to buy today
• Forget CSL shares, I’d buy this booming biotech stock instead
• With rising costs, are Woolworths shares still a good buy today?
• Seek shares tipped to storm 45% higher next year: Here’s why
• The ASX dividend stocks I’d trust to pay me through retirement

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

The Vanguard MSCI Index International Shares ETF (ASX: VGS) can be one of the most effective exchange-traded funds (ETFs) for building wealth, in my view.

There is a wide array of ETFs that can be used to build wealth, but there are only a few that tick as many boxes as this one does.

The goal of the ETF is to provide exposure to many of the world’s largest companies listed in major developed countries. Vanguard created this fund to offer low-cost access to a broadly diversified range of shares that allow investors to participate in the long-term growth potential of international economies outside of Australia.

The VGS ETF has strong diversification

I believe it’s important for Aussies to remember that the ASX only accounts for 2% of the global stock market. There are lots of other businesses that are appealing to own. Plus, the global share market is not dominated by slow-growing bank stocks and mining stocks.

The VGS ETF had 1,284 holdings at the end of November 2025, which I think is an enormous amount of diversification. Even 100 holdings would be adequate diversification, in my opinion.

But the fund is diversified not just by the number of holdings, but also by the sector allocation.

At the end of November, these are the exposures:

• Information technology (27.7%)
• Financials (16.1%)
• Industrials (11%)
• Consumer discretionary (10.1%)
• Healthcare (9.9%)
• Communication services (9.1%)
• Consumer staples (5.6%)
• Energy (3.4%)
• Materials (2.9%)
• Utilities (2.7%)
• Real estate (1.8%)

I think it’s useful that the Vanguard MSCI Index International Shares ETF is invested across an array of sectors.

The fund is also invested in a variety of markets.

While the US accounts for a sizeable majority of the portfolio, there are many other markets with a weighting of at least 0.4% including Japan, Canada, the UK, France, Germany, Switzerland, the Netherlands, Sweden, Spain, Italy, Hong Kong, Denmark and Singapore.  

I truly believe that Australians would benefit from gaining exposure to companies listed in different countries.

Growing weighting to a few large US stocks

While there are over a thousand holdings, there are a few names that are becoming an increasingly large part of the VGS ETF. That comes with both positives and negatives.

The largest seven positions in the fund account for more than 25% of the portfolio, which I think investors should be aware of. We’re talking about Nvidia, Microsoft, Apple, Meta Platforms, Alphabet, Amazon and Broadcom. This isn’t necessarily a bad thing, considering how strong these businesses are and how they regularly produce pleasing shareholder returns.

The S&P/ASX 200 Index (ASX: XJO) is even more heavily weighted to its largest holdings, so it’s not a unique situation. But, the fund doesn’t appear to be quite as diversified as it used to be, with a few large businesses becoming larger pieces of the pie.

Excellent financial characteristics

One of the key reasons why the fund has managed to perform so strongly – an average return of 15.7% per year over five years – is the ongoing good earnings growth of the businesses.

According to Vanguard, the fund’s portfolio of companies has seen an overall earnings growth rate of 22.1% over the previous year, which I’d say is an excellent rise considering how large the businesses already are.

Another positive is the return on equity (ROE) ratio of 19.6%, which says how much profit the businesses make on the retained shareholder money within the businesses. It’s a sign of quality but also implies what sort of return the businesses could make on future retained profits.

The ROE is why I’m expecting the VGS ETF can continue to perform adequately over the long-term, even if the valuation seems higher than normal today. Re-investing cash for a good profit boost should unlock shareholder returns over time.

The post 3 things about Vanguard MSCI Index International Shares ETF (VGS) every smart investor knows appeared first on The Motley Fool Australia.

More reading

• Forget Westpac shares, these ASX ETFs could be better buys
• How to build wealth with ASX ETFs
• If a 30-year-old invests $1,500 a month in ASX stocks, here’s what they could have by retirement
• How to build a $100,000 ASX share portfolio starting at zero
• Which of the most popular ASX ETFs has brought the best returns this year?

Motley Fool contributor Tristan Harrison 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, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. 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.

Nvidia, which sells the market-leading graphics processing units (GPUs) that power the data centers used to train and run AI models, has been a major beneficiary of the AI boom. But this also means that the stock could suffer if demand for AI computing slows.

However, despite sentiment toward AI turning more negative recently, demand for AI chips remains extremely robust. So, is the stock’s recent sell-off a buying opportunity?

Demand is still rising

A glance at Nvidia’s fiscal third-quarter results certainly doesn’t indicate that the AI boom is cooling off.

“Blackwell sales are off the charts, and cloud GPUs are sold out,” Nvidia CEO Jensen Huang said in the company’s fiscal third-quarter earnings release.

The tech company’s fiscal third-quarter revenue rose 62% year over year to $57.0 billion. That was faster than the 56% year-over-year increase Nvidia reported in fiscal Q2. This marked a return to accelerating growth after fiscal Q2’s top-line growth rate decelerated.

The data center segment, where most AI hardware demand sits, told a similarly bullish story in fiscal Q3. The segment’s revenue grew 66% year over year in the third quarter to $51.2 billion — up from 56% growth in the prior quarter.

Further, Nvidia’s profitability continued to impress. Fiscal third-quarter operating income rose 65% year over year to $36.0 billion, and earnings per share climbed 67% to $1.30.

Looking ahead, Nvidia guided for fourth-quarter fiscal 2026 revenue of $65.0 billion, plus or minus 2%. At the midpoint, that implies about 14% sequential growth and roughly 65% year-over-year growth.

A great business, but a risky stock

For investors looking to get in on this growth story, the pullback in the stock price certainly helps. But the setback may not be significant enough to fully price in some of the stock’s biggest risks.

Shares currently trade at about 43 times earnings. A valuation multiple like this makes sense if Nvidia can sustain its rapid growth and maintain its high gross margin in the 70s. But if investors start to see signs that either of these important factors behind Nvidia’s valuation is at risk, the stock could take an even bigger hit.

The risk is not that Nvidia suddenly stumbles in execution. This is unlikely. The bigger risk is that the AI buildout takes a breather. After all, the semiconductor industry has been cyclical for years — and it’s unlikely that this will ever change.

Competition is also intensifying. Some customers, including deep-pocketed tech giants Alphabet and Amazon, are designing their own chips. If they come up with reasonable alternatives to Nvidia’s GPUs, investors could get spooked.

And export rules remain another wild card. Nvidia has shown it can grow rapidly while even when China’s demand fades in importance. But because of regulatory and geopolitical concerns about sales of AI chips to China, there’s ultimately less visibility about Nvidia’s potential in the important market than there is in the U.S.

Sure, the stock’s pullback makes Nvidia shares more interesting than they were a few months ago. And it’s difficult to critique the business; not only did Nvidia’s sales accelerate in Q3, but management guided for a massive fourth quarter.

Even so, the stock’s high valuation means investors likely won’t be very forgiving if the AI boom shows signs of slowing. To be clear, there’s no clear evidence it is fizzling out yet. But since the market is forward-looking, all it will take is one or two material signs of a cooling market for AI chips to send the stock sharply lower. While there’s no guarantee this happens, it is a risk that demands a margin of safety when buying the stock — and I do not believe the stock’s margin of safety at the moment is sufficient.

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

The post Down 17% from recent highs, is Nvidia stock a buy? 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.

More reading

• Could Nvidia become the first $10 trillion company?
• 3 ASX ETFs that benefit from unavoidable megatrends
• Better Artificial Intelligence (AI) stock for 2026: Nvidia or AMD?
• 3 stocks that in 20 years have turned $5,000 into more than $1 million
• Will Nvidia crush the market again in 2026?

Daniel Sparks and his clients have 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, Amazon, and Nvidia. The Motley Fool Australia has recommended Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) is a quality bank and its shares have been a great investment this year.

But given how its shares (and the rest of the big four) look expensive now, they may not be the best option for investors.

But if you aren’t sure which ASX shares to buy instead of Australia’s oldest bank, then you could turn to exchange traded funds (ETFs) instead.

But which ASX ETFs could be top buys? Here are three that could be worth considering:

iShares Global Consumer Staples ETF (ASX: IXI)

The first ASX ETF for investors to consider buying is the iShares Global Consumer Staples ETF. It provides the kind of stability that could make it a core building block of any long-term portfolio.

This fund invests in leading global stocks that produce everyday essentials. These are products people buy regardless of the economic climate. Its top holdings include Nestle (SWX: NESN), Procter & Gamble (NYSE: PG), and Coca-Cola (NYSE: KO). These businesses benefit from consistent demand, strong brand loyalty, and global reach.

It is for these reasons that consumer staples are often considered defensive stocks. They may not grow as fast as tech firms, but they compound steadily over time.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ASX ETF for investors to consider buying instead of Westpac shares is the Vanguard MSCI Index International Shares ETF.

This popular fund provides investors with diversified exposure to more than 1,200 global stocks from across the US, Europe, and Asia. It includes many household names such as Nestle, Toyota (TYO: 7203), and Walmart (NYSE: WMT), giving investors a simple and cost-effective way to own a slice of the world’s biggest businesses.

It also effortlessly allows investors to diversify their portfolio beyond the local share market and expose it to global economic growth.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Finally, if income is your goal, then the Vanguard Australian Shares High Yield ETF could be worth a closer look.

This ASX ETF tracks a basket of ASX shares that have the highest forecast dividend yields based on broker expectations.

This gives investors exposure to some of Australia’s best dividend payers, including Westpac. Its top holdings currently include BHP, Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS). These blue chips have long histories of delivering fully franked dividends, even during challenging market conditions.

This fund currently trades with a 4.2% dividend yield.

The post Forget Westpac shares, these ASX ETFs could be better buys 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 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 Vanguard Australian Shares High Yield ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Domino’s Pizza Enterprises and DroneShield. The Motley Fool Australia has recommended Challenger, Domino’s Pizza Enterprises, and Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.