Tag: Stock pick

The S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. In afternoon trade, the benchmark index is up 0.3% to 8,591 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Catapult Sports Ltd (ASX: CAT)

The Catapult Sports share price is down 9% to $4.68. This is despite there being no news out of the sports technology company. However, it is worth noting that Japanese giant Fujitsu made an announcement yesterday which could potentially have some impact on Catapult’s business. It has launched the Fujitsu Accelerator Program for SPORTS, which is “a global partner co-creation program aimed at fostering new innovation in the sports sector.” One area of focus will be “data analysis and collection for team sports.”

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is down 1.5% to $11.40. This follows the release of the KFC restaurant operator’s half year results for FY 2026 this morning. Although Collins Foods delivered strong profit growth and upgraded its guidance, it wasn’t enough for some investors. It seems that this and more were already priced in given its strong share price gain in 2025. Year to date, the Collins Foods share price remains up approximately 55%.

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is down almost 4% to $22.36. This burrito seller’s shares have been under significant selling pressure this year. So much so, they are now down by approximately 45% since the start of the year. Valuation concerns and disappointing progress in the US market have weighed heavily on investor sentiment. It is also worth noting that Guzman Y Gomez is one of the most shorted ASX shares at present. At the last count, the company had 12.3% of its shares held short.

Pantoro Gold Ltd (ASX: PNR)

The Pantoro Gold share price is down 12% to $4.75. This has been driven by news that one of its largest shareholders has sold down its holding. This morning, the gold miner advised that Tulla Resources has sold 25.8 million shares in the company. Commenting on the sale, non-executive director and associate of Tulla Resources, Mark Maloney, said: “Tulla Resources has undertaken this sale as part of a strategy to return capital to its Principals and to free funding for its other resource projects. Tulla Resources retains a significant shareholding in Pantoro Gold, representing 6.11% of the register and is committed to the long-term success of the Company. At this time, we have no intention to sell any further shares. I will continue as a non-executive director and remain strongly supportive of the Company’s growth strategy and future.”

The post Why Catapult, Collins Foods, Guzman Y Gomez, and Pantoro shares are falling today appeared first on The Motley Fool Australia.

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

Lynas Rare Earths Ltd (ASX: LYC) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) rare earths miner closed yesterday trading for $14.70. During the Tuesday lunch hour, shares are swapping hands for $15.07 apiece, up 2.5%.

For some context, the ASX 200 is up 0.2% at this same time.

With today’s intraday gains factored in, Lynas Rare Earths shares are now up a whopping 130.6% year to date.

Lynas has been a direct beneficiary as demand for the critical rare earth elements – Neodymium (Nd) and praseodymium (Pr) – it produces soars as Western nations seek to end China’s stranglehold on rare earths supplies.

Both elements are crucial in the production of everything from smartphones to wind turbines to electric vehicles, alongside numerous military applications.

Lynas Rare Earths shares well-placed for more outsized gains

Looking to the year ahead, the team at Macquarie Group Ltd (ASX: MQG) expect more outperformance from the ASX 200 stock.

That’s despite the significant power disruptions Lynas reported on 25 November, which negatively impacted production at its Kalgoorlie Rare Earths Processing Facility in Western Australia.

Management advised on the day that the power disruptions will also affect the production of finished goods at Lynas’ Malaysian facility.

Following the 25 November power issues, Macquarie noted:

While the exact impact has not been disclosed, we note that the operation was running in batch production mode prior to these power issues. LYC is working with the WA government to improve grid stability and is also evaluating off-grid solutions.

And the broker doesn’t expect investors will see a materially negative impact on Lynas Rare Earths shares.

Macquarie said:

The Kalgoorlie disruption coincides with a planned major shutdown at the cracking and leaching facility in Malaysia, leading to production losses in 2QFY26. The company expects to lose approximately one month of output but plans to maintain sales through inventory drawdown.

We estimate NdPr production of 1.7kt in the December quarter, followed by output recovery in 2HFY26.

Noting that it expects the NdPr market to remain tight, the broker said, “We forecast LYC to sell 9kt of NdPr in FY26, supported by its ~7ktpa Malaysian facility and additional volumes from Kalgoorlie.”

Connecting the dots, Macquarie maintained its outperformance rating on Lynas Rare Earths shares with a $17.00 12-month price target. That’s almost 13% above current levels.

“We expect the NdPr market to remain tight fundamentally, driven by solid demand and supply disruptions. LYC remains the largest ex-China REE producer,” Macquarie concluded.

The post Up 131% in 2025, why Macquarie expects Lynas Rare Earths shares to keep outperforming in 2026 appeared first on The Motley Fool Australia.

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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 Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

Shares in biotechnology company Epiminder Ltd (ASX: EPI) got off to a less-than-stellar start on the ASX this week, with shareholders in the initial public offering already incurring decent losses.

The company’s shares listed on Monday and closed the day at $1.31, well below the IPO price of $1.50. The stock fell a further 5.4% on Tuesday morning to be changing hands for $1.24 apiece.

Positive developments fail to bolster shares

This was despite the company announcing an update to the US Medicare status of its Minder system, with the company saying the reimbursement level for the device would be set at US$27,700.

As the company told the ASX on Monday:

The company’s Minder device is the first and only US FDA-authorised implanted continuous EEG monitoring systems designed for monitoring of brain activity for epilepsy. Epiminder aims to use its innovative solution to assist patients and healthcare professionals in the management of drug-resistant epilepsy. It is seeking to fulfill a large and unmet addressable market. With approximately 1.1 million adults with drug-resistant epilepsy in the US alone.

The company said on Monday that in late November, it onboarded its first “Detect program partner”, and was targeting up to 25 sites in the US under its Detect program “to build clinical utility evidence”.

The company is also pleased to advise that it recently received the final ruling in relation to US Medicare reimbursement levels for the implantation of the Minder Device for 2026. The final US Medicare reimbursement level for 2026 has been set at approximately US$27,700, having previously been set on a preliminary basis at approximately US$22,500.

Epiminder said it was also eligible for other Medicare payments due to its device being classed as a “breakthrough” device.

Listing to drive commercialisation

The company raised $125 million in its IPO, with Cochlear Ltd (ASX: COH) taking up $10 million in new shares under the offer.

In addition to the stake it already owned, Cochlear was set to own 36% of the company on listing.

Epiminder said in its prospectus that it would use the money raised to progress its commercialisation plans.

The company is aiming to formally launch its G0 Minder system in the US in the first half of 2026, “undertaking a phased commercial rollout into leading epilepsy centres as part of a program, titled Detect, to demonstrate the clinical utility of the system”, it said.

The company’s chair, Philip Binns, said in the prospectus that the market for its device was worth an estimated US$1.1 billion annually in the US alone.      

The post Cochlear-aligned biotech off to a lacklustre start on the ASX appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX All Ordinaries Index (ASX: XAO) is in the green on Tuesday, up 0.08% to 8,873.8 points.

Morgans has updated its ratings and 12-month price targets on three ASX agriculture shares following their FY25 reports.

Let’s take a look.

Nufarm Ltd (ASX: NUF) 

Nufarm is an agricultural chemical and seed-technology company with clients all over the world.

The Nufarm share price is $2.39, down 2.85% today and down 34% in the year to date.

Morgans has a buy rating on Nufarm shares with a 12-month price target of $3.20 following the company’s FY25 results.

The broker commented:

While NUF’s FY25 result was weak, it was slightly above guidance.

A solid Crop Protection result was overshadowed by a poor Seed Technologies performance. Gearing was far too high at 2.7x, however it was better than feared. Outlook comments were upbeat.

In FY26, material earnings growth and a reduction in leverage ratios is expected. We have upgraded our forecasts. Now that there is certainty on Seed Technologies future, industry operating conditions have improved and there is a clear pathway to deleveraging the balance sheet, we upgrade NUF to a Buy recommendation and A$3.20 price target.

Elders Ltd (ASX: ELD)

Elders supplies all types of farming products, as well as advisory, financial, and real estate services.

The Elders share price is $7.28, up 0.14% on Tuesday and up 1% for 2025.

Recently, the broker retained its buy rating on Elders after the company released its FY25 results.

Morgans says there are many drivers in FY26 that should enable Elders to deliver strong growth.

The broker upgraded its price target on the ASX agriculture share from $8.50 to $8.65.

Morgans commented:

ELD’s FY25 result was in line with its guidance. As was well guided too, the 2H25 was weak due to drought.

Outlook comments were optimistic, the 1Q26 is off to a strong start and FY26 should benefit from a positive rainfall outlook, higher selling prices, acquisitions and the transformation projects.

Graincorp Ltd (ASX: GNC)

Graincorp offers grain handling, storage and logistics services, as well as trading and marketing. It also processes oilseeds to produce vegetable oils and other food products.

The Graincorp share price is $8.09, up 0.4% today and up 9.6% in the year to date.

Morgans thinks this ASX agriculture share has been oversold following an 8.4% decline over the past month.

The broker maintained an accumulate rating on Graincorp shares with a new price target of $9.05 following the company’s FY25 results.

Morgans said:

While it can be argued that the FY25 P&L result was lower quality due to one-offs, operating cashflow was materially stronger than expected, underpinning GNC’s strong core cash position.

This allowed the company to reward shareholders with an attractive final dividend.

In line with the recent outlook commentary from its international peers, GNC said that the margin environment will likely remain subdued in FY26. Consensus estimates were therefore too high.

Importantly, payments to the insurer will no longer occur in big crop years, allowing GNC’s strong fixed cost leverage to return when crop production issues around the world ultimately eventuate.

The post 3 ASX agriculture shares just re-rated by experts 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 recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Insurance Australia Group Ltd (ASX: IAG) shares are $7.67, down 0.2% while the S&P/ASX 200 Index (ASX: XJO) is up 0.4%.

As the end of the year draws near, ASX companies are releasing their corporate calendars for the new year.

Get your diaries out, here are the key dates to note for 2026.

When will IAG shares pay dividends in 2026?

Let’s start with the most important dates for us investors: the dividend announcements.

IAG will release its 1H FY26 results and announce its interim dividend on 12 February.

The ex-dividend date for the interim IAG dividend will be 17 February.

The record date will be 18 February.

If you’d prefer not to receive your dividend as cash and instead reinvest in more IAG shares via the dividend reinvestment plan (DRP), you’ll need to lodge your DRP election by 5pm AEST on 19 February.

IAG will pay the interim dividend to shareholders on 13 March.

The next big announcement will be the FY26 full-year results and final dividend on 13 August.

The ex-dividend date for the final dividend will be 24 August.

The record date will be 25 August, and your DRP election must be lodged by 5pm on 26 August.

IAG will pay the final dividend to investors on 28 September.

The annual general meeting is scheduled for 22 October.

What’s the latest news from the insurance giant?

IAG issued a statement regarding major weather events in Queensland, New South Wales, and Victoria on 10 November.

Managing Director and CEO Nick Hawkins said:

IAG has received more than 10,000 claims across its brands which includes approximately 5,800 from RACQ Insurance (RACQI) customers. The majority of these claims relate to motor and property hail damage.

IAG has activated its Major Event Command Centre and deployed teams of property assessors and partner builders to conduct Make-Safe repairs and help customers across the impacted areas.

Hawkins said the company had a range of reinsurance protections in place to reduce the financial impact of natural hazards.

… in relation to IAG’s owned and partner brands in Australia and New Zealand, excluding RACQI, IAG has long-term reinsurance arrangements that provide significant downside protection against natural peril events exceeding the full year non-RACQI perils allowance of $1,316 million.

In combination with whole-of-account quota share arrangements, IAG has approximately $1 billion of downside protection for non-RACQI natural perils costs.

What are the experts saying about IAG shares?

Macquarie has a neutral rating on IAG shares and a 12-month price target of $9.10.

UBS is more ambitious with a buy rating on IAG shares and a price target of $9.25.

The post Own IAG shares? Here are the dividend dates for 2026 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.

Big returns could be on the cards for buyers of PEXA Group Ltd (ASX: PXA) shares.

That’s the view of analysts at Macquarie Group Ltd (ASX: MQG), which are feeling positive about this ASX tech stock.

What is the broker saying?

Macquarie has been looking at recent housing market data that could impact this property settlements technology company.

It highlights that settlement activity has been growing at a solid rate in recent months, albeit with NSW volumes softening in November. The broker said:

NSW settlement activity was up +4.4% on pcp in Nov-25, a deterioration vs Oct-25 (+17.6%) and Sep-25 (+12.9%), while QLD activity in Oct-25 (latest available) was up +8.2% on pcp ahead of Sep-25 (+3.8%). By applying 75/25% weighting to NSW and QLD data (reflecting the number of dwellings in NSW/VIC vs QLD), total estimated national activity was up +15.5% in Oct-25, the strongest month of activity in 18 months. Our weighted average index is >95% correlated with PXA reported market volumes and is tracking at +7.1% YTD26 vs MRE +2.8% in 1H26E.

Transfer activity (on a weighted avg basis) was up +16.6% in Oct-25, the strongest month since Jul-24 (+19.4%). Refinancing activity remains robust at +15.1% in Oct-25, albeit weaker than the prior month at +24.9% and the last 6 months at +21.6%.

Big potential returns

In light of the above, Macquarie remains positive on this ASX tech stock and believes it is positioned to achieve its earnings estimates in FY 2026.

According to the note, the broker is forecasting revenue of $426.1 million and an adjusted net profit of $13.8 million in FY 2026, and then an increase to $470.8 million and $25.4 million, respectively, in FY 2027.

As a result, Macquarie has reaffirmed its outperform rating and $19.10 price target on Pexa’s shares.

Based on its current share price of $14.31, this implies potential upside of almost 35% for investors over the next 12 months.

Commenting on its outperform recommendation, the broker said:

Reiterate Outperform. Formal commitment from additional Tier-1 lenders is likely to incentivise the other four Tier-1 lenders to onboard with PXA quickly, driving rapid market share gains.

Valuation: Our TP of $19.10 remains unchanged and is based on the blended average of DCF, PE Relative and SOTP valuations. Catalysts: Tier-1 lender commitments, Digital strategic review, NatWest onboarding 2H26, IPART pricing review 2H26.

The post Macquarie tips almost 35% upside for Pexa shares 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 and PEXA Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and PEXA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX gold stock African Gold Limited (ASX: A1G) is on fire today.

African Gold shares closed yesterday trading for 31.5 cents. In late morning trade on Tuesday, shares are changing hands for 52 cents apiece, up 65.1%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.1% at this same time.

Today’s outperformance is par for the course for African Gold shares, which are now up a blistering 940% since this time last year.

And investors who bought the ASX gold stock in June 2024, when it was trading for a mere 2 cents per share, will now be sitting on 10-bagger plus gains of 2,525%.

Yep, that’s no typo.

Atop the soaring gold price (at US$4,225 per ounce, the yellow metal is up 60% in 12 months), here’s what’s grabbing ASX investor interest today.

ASX gold stock rips higher on takeover news

The African Gold share price is rocketing after the company announced it has entered into a binding scheme implementation deed with Canadian-based gold miner, Montage Gold Corp (TSE: MAU).

Under the agreement, Montage will acquire 100% of the shares in the ASX gold stock that it does not already hold. In exchange, African Gold shareholders will receive 0.0628 new Montage shares for every African Gold share held on the record date of the share scheme.

The scheme has an implied value of approximately 50 cents per African Gold share. With shares having risen to 52 cents apiece today, investors may be thinking that an even sweeter deal could be on the horizon.

Montage is currently the largest shareholder of the ASX gold stock, holding 17.3% of all shares.

African Gold’s independent directors unanimously support the scheme and recommend that African Gold shareholders and African Gold option holders vote in favour.

Under the deal, African Gold option holders will receive 0.0628 Montage options for every African Gold option they hold.

What is management saying?

Commenting on the takeover bid for the ASX gold stock, African Gold CEO Adam Oehlman said: “This transaction represents a compelling outcome for African Gold shareholders at this stage of the company’s evolution.”

Oehlman continued:

It validates the scale, quality and strategic positioning of the Didievi Gold Project and provides our shareholders with continued exposure to the upside through ownership in a larger, well-capitalised Côte d’Ivoire-focused gold company.

The board believes this proposed combination delivers scale, balance sheet strength and development expertise that materially de-risks Didievi and enhances its path toward production.

Montage CEO Martino De Ciccio added:

This significantly accretive transaction builds on the momentum generated thus far to advance our strategy of creating a premier African gold producer and delivering value for both Montage and African Gold stakeholders.

The post Guess which 10-bagger ASX gold stock is surging 65% today on takeover news appeared first on The Motley Fool Australia.

More reading

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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 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.

Shares in gold project developer Minerals 260 Ltd (ASX: MI6) hit a record high on Tuesday after the company shed new light on the size of its Western Australian gold project this week.

The stock has more than quadrupled over the past year, hitting 43.5 cents in early trade on Tuesday, up from a 12-month low of just 10 cents, with the shares trading at low levels until about the start of September.

Project shaping up well

The company published an updated minerals resource for its BullaBulling gold project, 25km west of Koolgardie in WA, on Monday, with the amount of contained gold doubling to 4.5 million ounces.

The company said the mineral resource estimate of 4.5 million ounces was at a grade of 1 gram per tonne of ore, and had more than doubled from the previous estimate of 2.2 million ounces.

The company also said exploration drilling had confirmed extensions of the mineral resources at depth across four deposits, “supporting an increased depth of about 100m in some areas of the pit shell”.

The mineral resource was calculated using a gold price of $4500 per ounce of gold and a cut-off grade of 0.4 grams per tonne.

The company said it would continue drilling at the project “to target mineralisation at depth and along strike with a further mineral resource estimate planned in calendar year 2026”.

More growth targeted

Minerals 260 Managing Director Luke McFadyen said the upgrade was pleasing.

This is an exceptional outcome for the company and our shareholders, just seven months after acquiring BullaBulling. When we acquired the asset, we believed there was a significant opportunity to grow the mineral resource estimate through an aggressive drilling campaign and improving the understanding of the geology. By doing this we have been able to add 2.2 million ounces and validate the previous mineral resource estimate, doubling the mineral resource estimate to 4.5 million ounces and establishing Bullabulling as one of the leading gold projects in Australia.

Mr McFadyen said the company had a pre-feasibility study underway, which was on track for completion next year.

The company had also recently employed new Chief Operating and Development Officers, and the engagement of an engineering contractor was “imminent”, he said.

Mr McFayden added:

Minerals 260 is building significant momentum towards its goal of becoming a major gold producer, targeting first production in late-2028.

In more positive news for the company, Bell Potter recently issued a research note putting a speculative target price of 57 cents on the shares.

Minerals 260 was valued at $892.5 million at the close of trade on Monday.

The post This gold developer’s shares are hitting record highs, up 300% for the year. Find out why appeared first on The Motley Fool Australia.

More reading

• This speculative ASX gold stock could rise 65%+

Motley Fool contributor Cameron England 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.

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

It seems the artificial intelligence (AI) race has escalated once again following President Donald Trump’s announcement that he has issued an executive order to launch Project Genesis. The administration compared its significance to the famous Manhattan Project, the World War 2 initiative to develop the atomic bomb. 

Project Genesis aims to develop an artificial intelligence platform utilizing supercomputers and data from various government agencies to accelerate America’s efforts in advanced manufacturing, national security, and other key areas. While it’s still early and the executive order didn’t detail any specific funding, a federal AI initiative makes it all the more likely that the leading technology companies will continue to benefit from strong AI tailwinds that have made them such lucrative investments over the past few years.

Here are the top AI stocks to buy right now. 

1. Alphabet

Google’s parent company Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) surged recently following the release of its well-received AI model, Gemini 3. Notably, Alphabet trained Gemini 3 on its own Tensor Processing Unit (TPU) chips, which are purpose-built for its machine-learning workloads. Alphabet’s TPUs have gained enough attention that Meta Platforms is reportedly considering implementing them in its data centers.

Alphabet’s stock has soared over the past few weeks as the market recognized that it owns all the components of an AI ecosystem, including data centers, AI models, a cloud platform, and vast amounts of user data to train its models. Despite the stock’s hot momentum, it’s still trading at a reasonable price/earnings-to-growth ratio (PEG) of 1.8, a solid buying point for long-term investors today.

2. Nvidia

As the current leader in AI chip technology, Nvidia (NASDAQ: NVDA) has enjoyed a significant market share in the data center chip market, estimated to be as high as 92%. The company probably doesn’t like seeing reports that its customers (Meta Platforms) are looking at other chips. However, Project Genesis is the latest signal that the AI market will ultimately be massive, perhaps too large for any single company to supply all the chips.

Nvidia’s cutting-edge graphics processing units (GPUs) and CUDA programming arguably make it the fundamental AI company, as virtually every AI hyperscaler is using its chips. Nvidia will also likely receive numerous opportunities as the government ramps up its AI plans.

Eventually, Nvidia could expand beyond data centers into other AI applications, such as robotics and autonomous driving. It already has its eyes on both industries.

3. Taiwan Semiconductor

Which company is fabricating all of these AI chips? It’s probably Taiwan Semiconductor (NYSE: TSM), the world’s leading foundry (a company that manufactures chips). Taiwan Semiconductor’s advanced manufacturing technology and capacity to produce mass quantities of high-end chips have enabled it to increase its market share in the AI era.

Today, Taiwan Semiconductor accounts for approximately 71% of the global foundry services market, measured as revenue share. Considering AI’s thirst for computing power and the fact that all chip roads essentially lead to Taiwan Semiconductor, it’s basically the ultimate pick-and-shovel AI play. The stock’s PEG ratio of 1 is enticing for buyers.

4. Amazon

E-commerce giant Amazon (NASDAQ: AMZN) is a sneaky AI stock because it also operates the world’s largest cloud computing platform in Amazon Web Services (AWS). AI, like most software today, runs in the cloud, giving Amazon a front-row seat to the AI growth opportunity. It has also developed a close partnership with Anthropic, one of the leading AI developers and a potential benefactor of Project Genesis.

Amazon and Anthropic just launched one of the world’s largest AI chip clusters, which will have nearly 1 million of Amazon’s custom AI chips by the end of this year. It could be a preview of what’s to come as the government invests in AI infrastructure.

Much of this AI demand could flow to AWS, producing a windfall for Amazon. The stock is attractively priced now, with a PEG ratio below 1.6.

5. Microsoft

Diversified tech-giant Microsoft (NASDAQ: MSFT) operates Azure, the world’s second-leading cloud computing platform. However, investors may want to own Microsoft for its close ties with OpenAI, the leading AI developer behind ChatGPT. Many view OpenAI as an AI pioneer, so it’s hard to see Project Genesis not producing opportunities for OpenAI along the way.

Microsoft is tied to OpenAI through 2032 via a newly announced agreement, and the two companies are pooling their knowledge and resources to develop custom AI chips. Microsoft’s large size and diverse businesses probably make it the slow-and-steady name on this list.

That may not be a bad thing, considering how unpredictable the AI boom has already proven to be. The company’s PEG ratio of 1.8 is a reasonable valuation to pay for the stock.

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

The post What are the 5 top artificial intelligence (AI) stocks to buy right now? 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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Justin Pope has positions in Alphabet. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $151.64. In morning trade on Tuesday, shares are swapping hands for $152.26 apiece, up 0.4%.

For some context, the ASX 200 is up 0.4% at this same time.

After a stellar 20-month run, which saw CBA shares gain 90% between October 2023 and June this year, the ASX 200 bank stock has come under selling pressure since notching its $191.40 a share record closing high on 25 June.

But with inflation in Australia on the rise again, economists are now increasingly expecting that rather than delivering two more cuts this cycle, the Reserve Bank of Australia may be forced to increase interest rates in 2026 from the current 3.60%.

That could benefit CommBank and its rivals by enabling them to improve their net interest margin (NIM). But, depending on the impact to households and businesses, it could also increase bad debts and see a reduction in borrowing.

So, what’s an investor to do?

CBA shares: Buy, hold or sell?

Despite the recent pull back in the share price, it’s still hard to find analysts that believe CBA shares present good value at their current levels.

Medallion Financial Group’s Stuart Bromley, for one, has a sell recommendation on Australia’s biggest bank (courtesy of The Bull).

“While the CBA remains a solid business over the long term, the share price looks expensive at current levels,” Bromley said.

“Recently trading on a price/earnings ratio of about 25 times and a modest dividend yield of about 3.15%, its valuation sits well above global peers,” he added.

And Bromley pointed to CBA’s poorly received first quarter (Q1 FY 2026) as reason for concern. He noted:

Also, the company recently suffered its worst sell-off in four years following the release of first quarter results in fiscal year 2026, which flagged higher operating costs, a weaker net interest margin (NIM) and a lower-than-expected common equity tier 1 capital ratio of 11.8%, which is still above the Australia Prudential Regulation Authority minimum of 10.25%.

But don’t sell your CBA shares just yet, counters Red Leaf Securities’ John Athanasiou (also in The Bull).

“CBA remains a high quality, profitable bank with strong capital ratios and a solid dividend, providing stability in a competitive sector,” said Athanasiou, who has a hold recommendation on the ASX 200 bank stock.

As for the spectre of rising interest rates in Australia, he added:

Upside is limited by an expensive valuation, margin pressure and economic risks, including elevated household debt and potential loan defaults. Retail and lending growth may slow amid a cooling housing market and possible rising interest rates. Fundamentals are intact, but these headwinds suggest caution.

Athanasiou concluded, “Holding CBA provides exposure to reliable earnings and dividends. We suggest investors monitor credit conditions and market trends.”

As for that passive income, CBA shares delivered $4.85 in fully franked dividends over the past 12 months.

The post Are CBA shares a good buy amid rising interest rates? appeared first on The Motley Fool Australia.

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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 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.