Tag: Stock pick

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

Nvidia (NASDAQ: NVDA) is currently the world’s largest company with a market cap nearing $4.4 trillion, followed by Apple (NASDAQ: AAPL) at around $4.2 billion, as of this writing. However, I think Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) will take the top spot by the end of 2026.

Alphabet is currently the world’s third-largest company with a market cap of around $3.9 trillion, just ahead of Microsoft (NASDAQ: MSFT) at $3.6 trillion. They are the only four companies with market caps above $3 trillion.

Let’s dig into why Alphabet is poised to become the world’s largest company by the end of next year. 

Alphabet is a market leader

Alphabet is actually already the world’s most profitable tech company. Its trailing 12-month earnings of $124.5 billion and quarterly earnings of $35 billion are both tops among megacap tech names. From a trailing price-to-earnings (P/E) basis, it’s also the cheapest of the group.

Data by YCharts.

However, stock prices are often about the future, and Alphabet has one of the brightest futures in big tech. What is so exciting about Alphabet is that it’s the company that developed the best artificial intelligence (AI) tech stack. The company has taken a vertically integrated approach, which gives it an advantage that should only grow wider in the future.

Alphabet’s big edge is that it has developed both its own top-tier custom AI chips and a world-class foundational large language model (LLM). No other company has a tech stock in these areas that is as far along as Alphabet.

In addition, it also has a top machine learning software platform in Vertex AI that helps create, train, and deploy custom AI models, usually based on its Gemini model, although it also supports third-party open-source models like Meta Platforms‘ Llama. It’s also a storage and data analytics leader with Colossus and BigQuery, and it even has its own fiber network to reduce latency. Its pending acquisition of cloud security leader Wiz will only add to its full-stack solution.

The company’s biggest advantage, though, is its custom AI chips, called tensor processing units (TPUs), which entered development more than a decade ago, and they are now in their seventh generation. The chips were optimized for Google Cloud’s TensorFlow framework, and have been battle-tested running Alphabet’s internal workloads. Having its own custom AI ASICs (application-specific integrated circuits) gives Alphabet a huge cost advantage both over rival cloud computing and AI model companies like OpenAI. It can just train models and run inference more cost-effectively both for itself and for customers.

This all helps Alphabet achieve a better return on its capital expenditure (capex) than competitors, who depend on Nvidia’s more expensive graphics processing units (GPUs) to train their LLMs, creating a virtuous cycle. Lower costs and a better ROI (return on investment) lead to better products and solutions, which allow it to invest more into them, continuing to make them better.

Meanwhile, by developing its own world-class AI model, Alphabet captures a larger portion of the revenue and can integrate it into other products like Google Search. Today, AI-powered features, such as AI Mode and AI Overviews, are helping drive queries and search revenue growth. At the same time, with its massive ad network, few companies are as capable as monetizing search and AI discovery.

On top of that, Alphabet has other huge advantages. First and foremost is the huge distribution advantage the company has through its ownership of the Chrome browser and Android smartphone operating system, which both have over 70% market share. Throw in its revenue-sharing deal to be the default search engine on Apple devices, and Google is essentially the gateway to the internet for most people. It also has a data advantage, given its decades of search queries and YouTube video uploads.

The road to becoming the world’s largest company

Alphabet is already the world’s most profitable tech company, and as more investors start to recognize its position as the AI company to beat, the stock should have strong upside from here. Its valuation is reasonable, and it should be able to outpace its growth expectations next year.

That should help propel it to become the world’s largest company by next year.

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

The post Prediction: This will be the world’s largest company by year-end 2026 (Hint: It’s not Nvidia) 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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Geoffrey Seiler has positions in Alphabet. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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, Apple, 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.

The cost of a comfortable retirement has hit a record high, according to the Association of Superannuation Funds of Australia (ASFA).

For homeowners aged 65 and over, a comfortable retirement now costs $76,505 per annum for couples and $54,240 for singles.

ASFA says this represents a 3.5% increase for couples and 3.6% for singles over the past 12 months.

By comparison, consumer inflation has lifted by 3.2%, indicating retirees have borne a greater increase in expenses than non-retirees.

ASFA said:

This underscores that retirees are experiencing stronger price pressures than the general population because they spend more of their budget on essential items that have risen the most.

ASFA defines a comfortable lifestyle as enough money to cover the basics plus top level private health insurance, many exercise and leisure activities, occasional restaurant meals, a domestic holiday every year, and an international trip every seven years.

ASFA created the Retirement Standard, which is Australia’s definitive retirement budgeting guide, in 2004.

The Retirement Standard is updated every quarter for inflation.

Last week, ASFA released its September quarter estimates of how much retirement costs in Australia.

ASFA also publishes expense estimates for a modest lifestyle for both homeowners and renters.

ASFA defines a modest retirement as having basic private health insurance, a cheaper car, basic internet and mobile phone, infrequent exercise and leisure activities, few restaurant meals, and one Australian holiday per year.

According to the September quarter update, a modest retirement now costs $50,866 per year for couple homeowners.

For single homeowners, a modest lifestyle now costs $35,199 per annum.

For renters, a modest retirement now costs $67,125 annually for couples and $49,676 for singles.

Retirement is more expensive for renters because their housing costs are higher.

Why have retirement costs jumped to record levels?

ASFA CEO Mary Delahunty said prices for essential items have risen faster than other categories, creating a greater impact for retirees.

Retirees might be feeling the squeeze this Christmas because prices have risen fastest in the things they spend most on, like food, energy and health. Some older people may cut back on pricier gifts, travel and social occasions to stay on top of the basics.

However, thanks to superannuation, most Australian retirees are living with additional income beyond the Age Pension each month, which makes them more financially resilient, including at financially stressful times of the year like Christmas.

In the September quarter, the cost of eating out or ordering takeaway rose by 1.3%.

Property rates rose 6.3% and electricity prices increased 9%.

Domestic holidays and accommodation lifted 5.2% and audio, visual, and media services rose 9.3%.

What about superannuation?

The superannuation savings required to fund a comfortable retirement remained the same in the September quarter.

Homeowner couples need $690,000 in super and singles need $595,000 by age 67 to fund a comfortable lifestyle.

A modest retirement for homeowners requires just $100,000 in super for both couples and singles.

Renters need $385,000 (couples) or $340,000 (singles) in superannuation savings to fund a modest lifestyle.

As we reported in October, more Australian retirees are living mainly off their superannuation instead of the pension.

In its Retirement and Retirement Intentions report, the Australian Bureau of Statistics said:

Between 2014-15 and 2024-25, the proportion of retired people with superannuation as their main source of income has increased from 20% to 28%.

Australians born on or after 1 January 1957 become eligible for the pension at age 67.

The full pension, including both supplements, is $1,777 per fortnight (combined) for couples and $1,178.70 per fortnight for singles.

There are 4.5 million retirees aged over 45 in Australia today.

The post Cost of a comfortable retirement rises to record high: ASFA 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.

History shows that long-term wealth is built not by predicting short-term volatility, but by owning exceptional businesses and giving them time to compound.

So, if you are searching for high-quality ASX growth shares to hold for many years, read on!

That’s because listed below are three standouts that are leaders in their fields and look particularly compelling right now.

Life360 Inc. (ASX: 360)

In recent years, Life360 has quietly become one of the most exciting growth stories on the ASX. The family safety app continues to scale rapidly across the United States and globally, with strong momentum in both users and paying subscribers.

The company’s most recent update showed annualised monthly revenue climbing 33% year over year to US$446.7 million, while total paying circles rose 23% to 2.7 million. Importantly, Life360 is now operating profitably, generating positive operating cash flow, and delivering meaningful margin expansion as subscription revenue grows.

What makes Life360 a compelling long-term growth idea is its enormous total addressable market. With over 90 million monthly active users but only a small percentage converting into paying subscribers, even modest improvements in monetisation could drive significant revenue upside. Add to that an expanding suite of premium features and international expansion, and you have an ASX share with a very bright outlook.

ResMed Inc. (ASX: RMD)

ResMed is already a giant in the global medical device market, yet it continues to offer substantial long-term growth potential. The company specialises in devices and software for treating sleep apnoea, which is a chronic condition affecting more than one billion people globally.

And with the vast majority of sufferers remaining undiagnosed, this creates a multi-decade runway for growth. Especially given how ResMed’s cloud-connected devices, data analytics platforms, and expanding software ecosystem mean it is positioned as the leader in the field.

Despite its positive long-term outlook, ResMed shares remain well below previous highs, giving investors an opportunity to buy a high-quality ASX stock at a very attractive valuation.

TechnologyOne Ltd (ASX: TNE)

Finally, TechnologyOne is one of the ASX’s true software success stories. Its transition to a Software-as-a-Service model has transformed its business, delivering recurring revenue growth, expanding margins, and outstanding cash generation.

The company’s government and enterprise clients tend to be sticky, long-term users of its integrated platform. This creates a highly dependable revenue base, allowing TechnologyOne to invest in innovation while continuing to deliver strong returns to shareholders.

With over a decade of uninterrupted profit growth behind it and a massive pipeline of organisations still shifting to cloud-based enterprise systems, TechnologyOne looks well positioned to keep compounding for years to come. In fact, management believes it can double in size every five years.

The post Top ASX shares to buy now for long-term growth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360, ResMed, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, ResMed, and Technology One. The Motley Fool Australia has positions in and has recommended Life360 and ResMed. 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 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 Life360 and Megaport. 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 ASX All Ords Index (ASX: XAO) closed in the green on Friday afternoon, up 0.22% for the day. For the year-to-date, the index is 5.45% higher.

The index gains are decent, but some ASX All Ords stocks have seen significantly stronger growth in 2025.

Fineos Corporation Holdings PLC (ASX: FCL) shares ended the week 1.4% lower to $2.82 at the close of the ASX on Friday afternoon. But the latest dip has barely touched the huge gains the Irish public software development company has enjoyed this year. For the year-to-date, the company’s shares have grown 49.2%.

Now, the team at Macquarie Group Ltd (ASX: MQG) has weighed in on where it expects the company’s shares to go next.

The ASX All Ords stock tipped to jump higher

In a note to investors, Macquarie confirmed its outperform rating and $3.48 target price on Fineos shares. These are unchanged from September.

At the time of writing, the target price implies that the ASX All Ords small-cap stock‘s shares could climb another 23.4% over the next 12 months.

“FCL’s medium-term revenue mix targets imply ~25% Subscription fee growth, compared to MRE forecasts +10%. The implied Subscription fee growth is based on FCL’s targeted Subscription fees mix of 65% in FY27, assuming 2.5% Services revenue growth estimates,” the broker said in its note.

Latest Guidewire Q1 FY26 results are a read-through for FINEOS 

Macquarie has used the first quarter FY26 Guidewire Software Inc (NYSE: GWRE) results as a “read-through” for Fineos. This is where the results or performance of one company are used to predict or explain what might happen with another company in the same industry.

The broker noted that Guidewire posted a 22% increase in annual recurring revenue (ARR), a 27% year-over-year rise in revenue, and a 20% increase in operating cash flow margin. 

The company also raised its guidance for the full year, now expecting around 20% growth in both ARR and revenue, and about 50% growth in operating cash flow.

When comparing valuations, Fineos trades at a much lower enterprise value/sales multiple than Guidewire. Fineos is valued at around 3.9 times sales, which is sharply lower (73%) than Guidewire’s valuation at 14.4 times sales. 

Looking at financial metrics, the Guidewire software revenue growth is much higher than that of Fineos. Guidewire’s subscription and license revenue grew 23% over the past year, while Fineos’ software revenue grew only 5.5%. 

Overall, Fineos is at a material discount to Guidewire. Although Macquarie’s analysts note that this could be because Guidewire has a different mix of revenue types, and spent less of its revenue on capitalised R&D compared to Fineos in the first half of FY25.

The post This ASX All Ords stock jumped 50% in 2025, tipped to climb another 23% appeared first on The Motley Fool Australia.

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

For long-term investors who want exposure to fast-growing global themes without picking individual stocks, ASX exchange traded funds (ETFs) could be the answer.

That’s because there are many out there that offer a simple, diversified way to tap into the next decade of disruption.

Three that stand out as explosive opportunities that could be worth buying and holding for years to come are named below. Here’s what you need to know about them:

BetaShares Australian Technology ETF (ASX: ATEC)

The BetaShares Australian Technology ETF provides investors with exposure to homegrown innovators such as WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), TechnologyOne Ltd (ASX: TNE), and NextDC Ltd (ASX: NXT).

One company that highlights the long-term potential of this ETF is WiseTech Global. Its CargoWise platform is used by the world’s largest logistics companies and has become the industry standard for managing global supply chains. As freight operators continue digitising and automating their networks, WiseTech’s pricing power, global reach, and sticky customer base give it a long runway for growth.

Betashares recently recommended this fund to investors.

BetaShares Crypto Innovators ETF (ASX: CRYP)

For investors willing to embrace higher volatility in exchange for higher potential returns, the BetaShares Crypto Innovators ETF could be worth a shout.

It provides exposure to the stocks that are building the global cryptocurrency and blockchain ecosystem. Its holdings include digital asset exchanges, mining companies, and blockchain development firms such as Coinbase Global (NASDAQ: COIN), Marathon Digital Holdings (NASDAQ: MARA), and Riot Platforms (NASDAQ: RIOT).

Coinbase is the leading U.S. crypto exchange, it benefits directly from increasing institutional adoption of digital assets, rising transaction volumes, and the broader growth of decentralised finance applications. As blockchain technology continues to expand beyond trading into payments, tokenisation, and real-world applications, companies like Coinbase could play a central role.

While BetaShares Crypto Innovators ETF is not for the faint-hearted, over a long investment horizon, the potential upside of the digital asset industry could be substantial.

BetaShares Video Games and Esports ETF (ASX: GAME)

Gaming has evolved from a hobby into one of the world’s largest entertainment industries. So much so, it is now bigger than the movie and music sectors combined.

The BetaShares Video Games and Esports ETF gives investors exposure to the companies driving that growth, including Tencent Holdings (SEHK: 700), Nintendo, and Electronic Arts (NASDAQ: EA).

A standout holding is Nintendo. Its iconic franchises, such as Mario to Zelda, continue to generate billions in global sales, while its hybrid Switch console remains one of the best-selling gaming systems ever. With esports expanding, digital sales rising, and subscription-based gaming becoming mainstream, companies in this ASX ETF’s portfolio are well placed to benefit from lasting consumer trends rather than short-lived fads.

The BetaShares Video Games and Esports ETF provides a simple way to invest in an industry with massive and enduring global demand. It was also recently recommended by analysts at Betashares.

The post 3 explosive ASX ETFs to buy and hold appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc, 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, Tencent, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Coinbase Global, Electronic Arts, and Nintendo. 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.

It has been another busy week for many of Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

CSL Ltd (ASX: CSL)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $256.00 price target on this biotechnology company’s shares. The broker remains very positive on CSL’s outlook due to the long term demand for immunoglobulins and plasma yield improvements from the Horizon program. It expects the latter to be supportive of a margin recovery in the key CSL Behring business. In light of this and recent share price weakness, the broker sees a favourable risk/reward profit here for investors. The CSL share price is trading at $183.21 on Friday afternoon.

NextDC Ltd (ASX: NXT)

A note out of Citi reveals that its analysts have retained their buy rating and $18.35 price target on this data centre operator’s shares. This follows news that the company has signed an agreement with ChatGPT’s owner, OpenAI. Citi notes that OpenAI is set to become an anchor tenant for the 650MW S7 data centre at Eastern Creek in Sydney. While revenue from this centre is still a couple of years away, the broker was pleased with the news and the diversification that it brings to its customer base. The NextDC share price is fetching $13.91 at the time of writing.

WiseTech Global Ltd (ASX: WTC)

Analysts at Macquarie have upgraded this logistics solutions technology company’s shares to an outperform rating with a $108.50 price target. According to the note, the broker is feeling more confident about WiseTech Global’s business model transition. And while it sees limited risk with its half year result, it remains cautious on its FY 2026 result and FY 2027 guidance. Nevertheless, the broker is bullish on the long term and believes that the company can and will fundamentally reshape the logistics industry. It also notes that execution risks are commensurate with the size and deliverability of a massive market opportunity, and that its current share price doesn’t reflect this delivery. The WiseTech Global share price is trading at $73.28 this afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in CSL, Nextdc, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group and WiseTech Global. 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 lithium carbonate price has surged 25% in 2025 and now sits at an 18-month high of US$13,292 per tonne.

The commodity’s rebound began in June amid higher demand for lithium to power battery infrastructure and electric vehicles (EVs).

Major global lithium producer Ganfeng expects lithium demand to grow by 30% in the new year.

Meantime, China is implementing supportive measures for the EV industry, which will boost lithium demand.

Analysts at Trading Economics said:

Top lithium consumer China stated it would double EV charging capacity to 180 gigawatts by 2027, supporting lithium-rich energy storage systems with compensation mechanisms for power storage infrastructure.

Also, output of new energy vehicles in China rose by 33.1% in the first ten months of the year, with October sales reflecting 51.6% of the market share, the first majority for new energy vehicles on record.

Other lithium prices are also higher.

The Spodumene Concentrate Index (CIF China) Price has ripped 26% in a month to US$1,162 per tonne.

The Battery-Grade Lithium Hydroxide price is also up about 9.5% in a month to US$10,300.32 per tonne.

China is also enacting anti-involution initiatives to constrain the output of critical minerals like lithium to preserve current price levels.

Broker recommendations on ASX lithium shares

Higher lithium prices have provided a tailwind for ASX lithium shares, many of which have recently hit new 52-week highs.

Today, the Pilbara Minerals Ltd (ASX: PLS) share price is $3.82, up 2.3% on Friday and up 184% since 1 July.

The market’s largest pure-play ASX lithium share hit a 52-week high of $4.26 last month.

Last month, Citi reiterated its hold rating on Pilbara Minerals shares with a 12-month price target of $3.25.

Morgans says this ASX lithium share is a sell with a price target range of $2.80 to $3.10.

IGO Ltd (ASX: IGO) shares are $6.91, up 7% on Friday and up 66% since 1 July.

The nickel and lithium producer reached a 52-week high of $7.35 per share last month.

Macquarie put a buy rating on IGO shares this week with a price target of $5.75.

Citi has a hold rating with a price target of $5.60.

Morgan Stanley has a sell rating on this ASX lithium share with a target range of $4.50 to $4.60.

The Liontown Ltd (ASX: LTR) share price is $1.33, up 5.6% today and up 90% since 1 July.

Liontown shares hit a 52-week high of $1.61 last month.

Last week, Macquarie put a sell rating on Liontown with a price target of 65 cents.

Citi also has a sell rating with a target of 50 cents.

Outlook for lithium prices

Jacob White from Sprott Asset Management said lithium sentiment turned bullish this year following three years of decline.

Now, expectations of stronger demand outside the US mean global oversupply may be absorbed sooner than anticipated.

In an article this week, White said:

This rebound is being driven by robust demand growth and ongoing inventory reduction, alongside regulatory tightening, including the shutdown of a major Chinese lithium mine by Contemporary Amperex Technology Co. Ltd. (CATL) and new government measures aimed at preventing producers from selling lithium at unsustainably low prices.

The increased recognition of lithium as a critical mineral, combined with Western concerns over China’s control of global supply chains, is bolstering the sector outside of China.

These combined forces are reshaping the global lithium landscape and providing support to prices.

White said Sprott Investment had a positive outlook on lithium prices.

As supply adjustments take hold and global EV demand remains relatively strong, our outlook on lithium remains positive.

We believe price stabilization, industry consolidation and continued government stimulus measures in China should support long-term growth prospects even as shifting U.S. policies create uncertainty.

White points out that lithium batteries are increasingly being used in data centres that are powering the artificial intelligence revolution.

He said:

Given that the electricity demand of global data centers is projected to rise 2.5 times by 2030, there is significant room for growth. 

Google is using more than 100 million lithium-ion cells in its data centres worldwide.

The post Lithium price rebounds 25% in 2025: Which ASX lithium shares are a buy? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Imdex Ltd (ASX: IMD) shares are pushing higher on Friday afternoon.

At the time of writing, the mining technology company’s shares are up almost 2% to $3.30.

This means that its shares are now up almost 40% since the start of the year.

But if you thought it was too late to invest, think again! That’s because analysts at Macquarie believe the ASX tech stock could keep rising from here.

What is the broker saying about this ASX tech stock?

Macquarie notes that the company has announced acquisitions that will expand its market-leading product suite. It said:

Imdex will acquire 100% of Advanced Logic Technology (ALT) and its subsidiary, Mount Sopris Instruments (MSI) for €55.8m (~A$98.9m) upfront and performance-linked deferred components including ~A$4.5m and ~A$35.4m. The acquisition will be funded from existing cash and debt facilities, with proforma leverage ~1.1x post completion.

The broker appears positive on the move and believes it will create some easy wins that accelerate growth and margins. It adds:

Expands the portfolio with complementary offerings. The acquired product portfolios are complementary and don’t compete with existing IMD products. Around 20% of revenue is software with an 85% GM, while the hardware business is ~45%

Some easy wins to accelerate growth & margins. Leveraging IMD’s global network is expected to generate quick wins, particularly in markets where the business currently has lower penetration. The approximately 45% gross margin in hardware has been partly driven by one-off sales revenue; however, transitioning to IMD’s rental model is likely to deliver more sustainable and stronger margins over time.

Time to buy

According to the note, the broker has upgraded Imdex’s shares to an outperform rating with an improved price target of $3.80.

Based on its current share price, this implies potential upside of 15% for investors over the next 12 months.

In addition, it expects a modest 1.1% dividend yield in FY 2026, growing to 2.9% in FY 2027.

Commenting on its outperform rating, Macquarie said:

Capital raising & drilling activity levels continue to improve – IMD’s AGM noted an increase in rig utilisation in all regions. Current multiple ~11x EBITDA is near the top of its range, but we see potential for a re-rate if IMD can accelerate growth in its software business, both organic and M&A.

Valuation: TP +4% to $3.80ps (set near the top end of our valuation range), driven by incorporation of ALT & MSI into our forecasts. Catalysts: 1H26 result, ongoing improvement in raising and drilling activity, strategic M&A, building out software businesses.

The post Macquarie says this top ASX tech stock could rise 15% 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Imdex and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a challenging 5-year period since 4DMedical Ltd (ASX: 4DX) IPO’d in 2020.

At one point, the company’s share price was down 90% from its October 2020 all-time high of $2.60, but things finally seem to be turning around. In fact, one could argue that 2025 is turning out to be a breakout year for the medical technology company.

The company’s share price is now up a staggering 680% since July and is currently trading at $1.89. Moves like that usually trigger two reactions: “I missed the boat” or “This must be a bubble”, so what exactly has contributed to this remarkable recovery?

Consistent contract wins

The first clear signal for investors was the steady drumbeat of new deal announcements throughout the year. 4D Medical has been consistently locking down renewals and new agreements with some notable clients.

In July, they secured a 3-year contract renewal with the University of Michigan, and the company has recently expanded its agreement with Stanford University to include the new CT:VQ technology, whilst also entering into local deals with Royal Melbourne Hospital.

Recently, the company announced that Phillips would add CT:VQ to its North American product catalogue, backed by a minimum $15m contractual order commitment over 2 years.

While the contract sizes vary, the consistency of these wins with such prestigious institutions showed the market that the technology was gaining genuine traction.

The FDA green light

The company cleared a major hurdle on September 1, 2025, when it received FDA clearance for CT:VQ. CT:VQ is a software-as-a-service (SaaS) product that enables doctors to scan for pulmonary embolisms (blood clots) using a standard CT scan, without the need for contrast dye or radioactive tracers.

The FDA clearance opens up an addressable market of US$1.1 billion in the US alone, and it solves a logistical nightmare for hospitals by removing the need for nuclear medicine teams, meaning 4D Medical isn’t just selling software; it’s selling efficiency.

Investment from Pro Medicus

In July, Pro Medicus Ltd (ASX: PME), the $26 billion ASX medical imaging giant, invested $10 million into 4D Medical.

The investment was structured as a hybrid debt/equity facility. This means that while it provides 4D Medical with non-dilutive cash to grow, it also gives Pro Medicus “upside alignment.” If 4D Medical’s share price performs strongly over the two-year term, Pro Medicus stands to gain more.

Pro Medicus is the poster child of what success looks like for a medical imaging company listed on the ASX and selling its products in the US. If 4D Medical can follow in those footsteps, then there is plenty more upside to come.

Foolish bottom line

4D Medical’s stunning turnaround is the product of real traction. With consistent contract wins, FDA clearance unlocking a billion-dollar US market, and strategic backing from Pro Medicus, the company is adding credibility, capital, and a commercial pathway to success.

The risks aren’t gone, but for the first time since its IPO, 4D Medical looks less like a speculative bet and more like a business that’s beginning to deliver.

The post Up 680% since July, here’s why 2025 was a breakout year for this hot ASX stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.