When investors think about artificial intelligence (AI), they often picture chipmakers, software developers, or companies training large language models. What tends to get overlooked are the businesses that make AI work at scale. These are the infrastructure providers that connect data, compute, and users in real time.
That's why I think Megaport Ltd (ASX: MP1) could be one of the most underrated AI stocks on the ASX in 2026.
Megaport isn't building AI models. Instead, it provides the digital plumbing that allows AI workloads to function efficiently, and that role is becoming increasingly important.
Image source: Getty Images
AI demand is an infrastructure problem
Artificial intelligence is incredibly data-intensive. Training models, running inference, and moving large datasets between clouds and data centres all require fast, reliable, and flexible connectivity. This is where Megaport comes in.
The company operates a network-as-a-service platform that allows customers to dynamically connect to cloud providers, data centres, and enterprise networks on demand. Rather than relying on fixed, long-term contracts, customers can scale bandwidth up or down as their needs change.
As AI workloads grow more complex and distributed, that flexibility becomes a competitive advantage.
Expanding beyond connectivity
What makes the Megaport story more interesting is that it's no longer just about connectivity.
The company has expanded its product offering to include compute through its newly acquired Latitude platform, which provides dedicated infrastructure designed for high-performance workloads.
This broadens Megaport's role from simply moving data to helping customers process it more efficiently.
Importantly, this expansion builds on Megaport's existing customer base and network footprint, rather than requiring an entirely new go-to-market strategy. Customers who already rely on Megaport for connectivity can now access additional infrastructure services within the same ecosystem.
That kind of expansion increases wallet share and deepens customer relationships, which is a key ingredient for long-term growth.
A large and growing end market
AI isn't a short-term trend, and neither is the demand for the infrastructure that supports it.
Data volumes continue to rise, cloud architectures are becoming more complex, and enterprises are looking for ways to optimise performance while managing costs.
Infrastructure models that sit between traditional on-premise systems and public cloud, offering flexibility without excessive overhead, are increasingly relevant.
Megaport's platform is designed specifically for this environment. While it may not attract the same attention as more obvious AI plays, it sits directly in the path of long-term digital infrastructure spending.
Why it's an overlooked ASX AI stock
Part of the reason that I think Megaport feels underrated is that its role isn't immediately obvious.
It doesn't sell AI software. It doesn't manufacture chips. And its revenue growth can be influenced by customer usage patterns rather than headline announcements. But that doesn't make the opportunity any less real.
In fact, some of the best investment outcomes come from businesses that quietly become more important as industries evolve. And with this ASX AI stock down 32% since early November, now could be a good opportunity to invest.
Foolish Takeaway
Artificial intelligence needs more than algorithms to succeed. It needs infrastructure that can move, connect, and process data efficiently.
Megaport sits at the heart of cloud, connectivity, and compute, all of which are becoming more critical as AI adoption accelerates.
While it may not be the first stock investors think of when they hear "AI", that's exactly why I believe it could be one of the most underrated AI opportunities on the ASX in 2026.
For investors willing to look beyond the obvious, I think Megaport is a stock worth paying attention to.
