2 unstoppable ASX growth shares to buy and hold

These shares are positioned for strong growth over the next decade according to analysts.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Life360's transformation into a comprehensive digital safety platform with a growing subscription-driven model capitalises on its massive user base, enabling expansion into adjacent services and international markets, making it a compelling ASX growth share.
  • NextDC stands out as a key infrastructure provider for the digital economy, benefiting from surging demand for data centre capacity driven by cloud computing and AI, with strategic expansions and deals like the one with OpenAI boosting its growth outlook.
  • Both Life360 and NextDC are anticipated as strong long-term investment options, with analysts expressing confidence in their potential through bullish ratings and optimistic price targets, cementing their positions as unstoppable ASX growth shares.

Genuine long-term wealth rarely comes from trading in and out of whatever is popular.

Instead, it often comes from owning a handful of elite businesses, the sort that keep expanding their markets, improving their earnings power, and strengthening their competitive edge year after year.

On the ASX, several ASX growth shares fit that description, but two in particular stand out as long-term compounders with momentum firmly behind them.

Here are a couple of unstoppable ASX growth shares to buy and hold for years.

A woman crosses her hands in front of her body in a defensive stance indicating a trading halt.

Image source: Getty Images

Life360 Inc (ASX: 360)

Life360 has transformed from a family-tracking app into a full-scale digital safety platform with growing subscription muscle. What makes the company so unstoppable isn't just its massive user base, it is the rate at which that base is evolving.

Recent updates show explosive momentum. It reported accelerating subscriber growth, rising average revenue per user (ARPU), strong cash generation, and global monthly active users approaching the 100-million mark. This scale gives Life360 significant optionality.

With a platform that already lives on the smartphones of tens of millions of families, Life360 can expand into adjacent categories such as home security, insurance partnerships, vehicle telematics, and commerce integrations. Very few consumer apps enjoy this type of engagement or monetisation leverage.

And because Life360's model is subscription-driven, revenue compounds each year even without massive user growth. Add the potential benefits of international expansion and its advertising business, and it is clear why many analysts view it as one of the ASX's emerging global leaders.

Morgan Stanley recently put an overweight rating and $58.50 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that could be a top buy and hold option is NextDC. It provides the physical backbone the digital economy runs on.

Demand for data centre capacity has surged with the rise of cloud computing, streaming, ecommerce, and especially artificial intelligence. Every AI model, every cloud migration, and every tech platform relies on compute and storage, which NextDC delivers through some of the most advanced, energy-efficient data centres in the region.

What makes NextDC unstoppable isn't just industry tailwinds, it is the company's aggressive build-out strategy. Major new facilities are coming online across key markets, and each one typically ramps up utilisation over many years, driving recurring revenue higher without proportionate increases in cost.

An example of this is the deal it has just signed with ChatGPT's owner, OpenAI. The two parties are looking at building the largest data centre in the southern hemisphere, with OpenAI as its anchor tenant.

Combined with the rest of its development pipeline across Australia and the Asia-Pacific region, this leaves NextDC well-placed for growth over the next decade and beyond.

Morgans is bullish on the company and recently upgraded its shares to a buy rating with a $19.00 price target.

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

More on Growth Shares

A couple are happy sitting on their yacht.
Growth Shares

What are the best Australian shares to buy now to try and make a million?

Looking to build wealth over the long-term? These shares could help.

Read more »

Purple tech growth chart.
Growth Shares

2 wonderful ASX All Ords stocks I'd buy today

These stocks could deliver great returns. Here’s why…

Read more »

Cheerful man in a orange shirt standing in front of an audience holding a tablet and using hand gestures to interact with the audience.
Growth Shares

3 amazing ASX growth shares that continue to stand out

Looking for growth options? Here are three to consider.

Read more »

Person pointing finger on on an increasing graph which represents a rising share price.
Growth Shares

2 ASX shares tipped to grow at least 50% in the next 12 months

These stocks could be some of the best ones to own today.

Read more »

Scared looking people on a rollercoaster ride representing volatility.
Growth Shares

What's driving the wild swings in Telix shares?

The ASX biotech stock offers high-growth potential, but it comes with volatility.

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.
Growth Shares

3 stellar ASX growth shares to buy now with 30% to 70% upside

Analysts have buy ratings and lofty price targets on these shares.

Read more »

Person using a calculator with four piles of coins, each getting higher, with trees on them.
Growth Shares

2 ASX shares that I rate as buys today for both growth and dividends!

These businesses have plenty going for them. I’m calling them buys…

Read more »

Two excited woman pointing out a bargain opportunity on a laptop.
Share Market News

NextDC shares rocket 27% higher: Buy, hold or sell?

Can NextDC shares keep climbing higher, or have they now peaked?

Read more »