I think it is fair to say that artificial intelligence (AI) is one of the most transformative technologies of our time, and its rapid adoption is creating huge demand for the infrastructure that powers it.
While many investors think of US tech giants when it comes to AI, there are ASX tech shares playing a crucial role in enabling the AI revolution.
Investors that can identify these tech shares today, could be seriously rewarded in the future.
But which ASX tech shares could be buys for the AI boom?
Well, two shares that analysts believe could stand to benefit are listed below. Here's why they think they could be shares to buy for exposure to this megatrend:
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Megaport Ltd (ASX: MP1)
The first ASX tech share that could be a big winner from the AI boom is Megaport. It provides network-as-a-service solutions, allowing businesses to connect quickly and securely to cloud providers, data centres, and other IT services. Its software-defined networking platform gives customers flexibility and scalability — two features that are becoming increasingly important as AI workloads demand more data transfer and faster connections.
With AI driving exponential growth in cloud computing and data exchange, Megaport is well positioned to capture this demand. Especially as it continues to expand its global footprint, adding new data centre locations and building relationships with major cloud providers.
Morgans is bullish on Megaport and has an accumulate rating and $15.50 price target on its shares.
NextDC Ltd (ASX: NXT)
Another ASX tech share that stands to benefit greatly from the AI boom is NextDC. It is Australia's leading data centre operator, providing secure, high-performance facilities for businesses and cloud service providers. Its data centres are critical infrastructure for AI, housing the powerful servers and high-speed networks needed to process vast amounts of data.
The company has been investing heavily in new capacity to meet surging demand, with developments underway in key cities across Australia and the Asia-Pacific. As AI adoption accelerates, NextDC's premium facilities and strong reputation for reliability could see it capture a growing share of this market.
The team at Morgans is also a fan of NextDC. It believes the company is well-placed for strong growth over the next few years thanks to significant contract wins. As a result, it recently put a buy rating and $18.80 price target on its shares.
