Interest in artificial intelligence (AI) rocketed over the past year, and rapid advancements in the sector hint that there is more to come for FY26.
Here are three ASX-listed AI shares to keep an eye on for the year ahead.
Megaport Ltd (ASX: MP1)
Megaport provides data network-as-a-service (NaaS) connectivity services that support AI applications that need high-speed data transfer. Essentially, the platform allows businesses to quickly and securely connect to cloud services, data centres, and other digital infrastructure without the need for traditional physical hardware.
It's this exposure to cloud computing that makes the company well-positioned for growth over the long term, too. General demand for AI development and a company's thirst for growth will also support success.
Megaport expanded its network presence in the first half of FY25. It added 82 new data centres and four new internet exchange locations. It also launched new products, such as the 100GB Megaport Cloud Routers and the NAT Gateway, demonstrating significant innovation.
Thanks to its exposure to cloud computing, general AI trends, and thirst for growth, the company is well-positioned for continued improvement.
Unsurprisingly, the AI business is reaping rewards from the AI demand boom this year, and has also seen consistent share price growth.
At the ASX close on Wednesday, Megaport's share price dropped 1.13% to $13.95. Despite the small decline over the day, the share price has risen 111.04% since January, and is up 27.63% for the year.
The team at Morgans has an accumulate rating and $15.50 price target on its shares. The broker thinks the company is "uniquely placed to help businesses move data globally and benefit from the growth of data related to both cloud computing and AI".
NextDC Ltd (ASX: NXT)
Another Australian AI stock set to strengthen in FY26 is NextDC. It is Australia's leading independent data centre operator, focused on providing a secure environment for businesses to house their IT infrastructure and enabling businesses to have reliable network connections to support their operations.
The business is headquartered in Brisbane but operates across 13 data centres supporting networks across Sydney, Melbourne, Brisbane, Perth, and Canberra.
The stock also has significant growth prospects. It has raised $1.3 billion to develop new data centres in Sydney and Melbourne to meet the increasing demand for AI processing power.
It is clearly in favour with investors too. NextDC was the second-most traded AI stock on the ASX from 1 April to 15 June.
Its success is also reflected in its share price, with many investors looking to take a piece of the pie.
At the close on Wednesday, NextDC's share price fell 1.05% to $14.19.
The stock is 18.68% lower over the year after the price plunged in April. But it has since posted a strong and consistent recovery.
Morgans is very bullish on NextDC and sees it as a great way to invest in AI. It has a buy rating and a $18.80 price target on its shares. This would represent a 32.48% increase from Wednesday's share price at the ASX close.
But Macquarie thinks the share price could storm even higher. The broker confirmed its outperform rating and its $22.10 target price on the stock last week. That represents a potential 55.74% upside from Wednesday's trading price at ASX close.
Macquarie Technology Group Ltd (ASX: MAQ)
Macquarie Technology is one of Australia's leading data centres, which provides infrastructure for cloud computing, cybersecurity, and telecommunications. It offers a tailored service to help medium-to-large businesses and government customers facilitate their AI workloads.
The business has posted 20 consecutive half-years of operating income growth. In its latest H1 2025 results, released in February, the business announced a 1% increase in its revenue and a 6% increase in its EBITDA.
The business is clearly fast-growing, and its share price is mostly following suit.
At Wednesday's close of the ASX, the share price is 0.05% lower at $65.46.
Over the past year, Macquarie Technology shares have dropped 27.59% but they've surged 47.56% over the past 5 years.
Analysts expect more upside for the stock, too. One-year price forecasts for Macquarie Technology have a maximum estimate of $110.18 and an average of $88.80. That represents a potential upside of as much as 68.31% from the current trading price.
