3 ASX growth shares that could be future giants

Let's see why these buy-rated shares could be significantly larger in 10 years.

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Key points
  • Life360 is expanding beyond its roots as a tracking app into a robust subscription platform with a vast addressable market, promising significant growth potential by monetising both premium features and its vast untapped user base, backed by Bell Potter's buy rating.
  • Positioned at the heart of the digital infrastructure surge, NextDC is capitalising on increasing data demands from AI and cloud computing, with a strong data centre presence and stable, long-term contracts, earning a buy rating from UBS as it rides this megatrend.
  • As Australia's top online furniture retailer, Temple & Webster is gaining market share despite retail challenges, set to benefit from the shift to online shopping, with Morgan Stanley's overweight rating reflecting confidence in its multi-year growth trajectory.

For investors focused on the long-term, there are a handful of ASX growth shares today that have the potential to become significantly larger businesses by 2035.

But which ones could be buys today?

Here are three that analysts think stand out as future giants in the making:

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Image source: Getty Images

Life360 Inc. (ASX: 360)

Life360 has transformed from a family-tracking app into a high-growth global subscription platform. Its growth metrics remain exceptional: paying circles are rising sharply, monthly active users continue climbing past 90 million, and the company is generating growing profitability alongside strong operating cash flow.

What makes Life360 particularly compelling is its enormous addressable market. The company's platform naturally lends itself to premium features such as safety tools, roadside assistance, data services, and partnerships. And with less than a fraction of its global user base currently monetised, the runway ahead is long. It is also only at the beginning of monetising its free users through its new advertising business.

Bell Potter is bullish on the company's outlook. So much so, it recently put a buy rating and $52.50 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that could be destined for big things is NextDC.

It is a leading data centre operator that is building the infrastructure powering Australia's digital economy. Demand for cloud computing, AI, data processing and storage is surging, and NextDC sits at the centre of it.

The company continues to expand its high-capacity data centre footprint across major Australian cities, while securing long-term contracts with hyperscale cloud providers and enterprise customers. This gives NextDC recurring, inflation-linked revenue, strong retention rates and visibility well into future years.

Data usage isn't slowing. If anything, AI models, automation and high-bandwidth applications are accelerating the need for secure, energy-efficient data storage. Few ASX businesses are as well-positioned for this infrastructure megatrend as NextDC.

UBS is a fan of NextDC and has a buy rating and $21.45 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Finally, Temple & Webster has quietly become Australia's leading online furniture and homewares retailer. While the broader retail sector has faced pressure from cautious consumer spending, Temple & Webster continues taking market share thanks to its digital-first model, growing private-label range and efficient logistics network.

In Australia, online furniture penetration lags behind that in the US and Europe. This gives Temple & Webster a multi-year growth opportunity as more consumers shift to online shopping for big-ticket items. In light of this, the company could be many times larger in 2035 than it is today.

Last week, Morgan Stanley put an overweight rating and $28.00 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Life360, Nextdc, and Temple & Webster Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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