The Australian share market may not have any companies like Nvidia (NASDAQ: NVDA) or Broadcom Inc (NASDAQ: AVGO), but that doesn't mean there aren't ways to gain exposure to the artificial intelligence (AI) megatrend.
Let's take a look at two exciting ASX AI stocks that analysts are tipping as buys this month. They are as follows:
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Megaport Ltd (ASX: MP1)
Megaport could be a great ASX AI stock to buy according to analysts at Morgans.
It is a technology company that is revolutionising how businesses connect to their infrastructure. Megaport's cloud-based platform allows users to create secure, scalable, and flexible networks in just a few clicks.
Morgans highlights that this leaves it very well-positioned to benefit from the growth of AI. It said:
Megaport is a global cloud connection network and the leading Network as a Service provider. It operates the largest data centre connection business in the world, connecting to 850 data centres through a fully automated, on-demand telco network. We think it is uniquely placed to help business move data globally and benefit from the growth of data related to both cloud computing and AI.
The broker currently has an add rating and $14.00 price target on its shares. Based on its current share price of $10.26, this implies potential upside of 36% for investors over the next 12 months.
Goodman Group (ASX: GMG)
Another ASX AI stock that could be a buy according to analysts is Goodman Group.
It is an integrated industrial property company which has been growing at a strong rate for the past decade.
The good news is that Goodman appears well-placed to continue this trend for some time to come thanks partly to its exposure to AI through its data centre pipeline.
Bell Potter is a big fan of the company and believes it offers good long-term value for investors at current levels. So much so, it has named it as one of its best ideas in March. The broker said:
GMG presents an attractive opportunity, particularly following its recent pullback after the capital raise. The company is well-leveraged to data centres, a high- growth sector that is driving a strong future development pipeline at higher margins. As a founder-led business, GMG benefits from experienced leadership with a proven track record of robust EPS growth. Trading at ~25x forward earnings with double-digit earnings growth projected over the next few years, we believe the current valuation offers good long-term value for investors.
Bell Potter doesn't have a price target for Goodman. It just expects "attractive risk-adjusted returns over the long term."
