I'm optimistic that the benchmark ASX 200 index will continue its ascent in 2026 and reach new highs.
And while a rising tide lifts all boats, I think there are a couple of ASX 200 shares that could benefit more than most from a booming share market.
I'm not alone with this view. The two ASX shares named below have been rated as buys and tipped to rise materially over the next 12 months by analysts. Here's what they are recommending:
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NextDC Ltd (ASX: NXT)
NextDC is an ASX 200 share that could rise strongly from current levels according to analysts.
It develops and operates data centres across Australia and is expanding into international markets. As cloud computing, artificial intelligence (AI), and data-intensive applications continue to scale, demand for secure, high-quality data centre capacity is rising rapidly.
What makes NextDC particularly attractive is its positioning. Its facilities are typically located in premium, high-connectivity locations and are designed to support hyperscale customers as well as enterprises. Once customers commit workloads to a data centre, switching providers can be costly and complex, which supports long-term utilisation and pricing power.
Morgans is very positive on the company and its outlook. It recently put a buy rating and $18.00 price target on its shares. Based on its current share price of $12.81, this implies potential upside of 40% for investors over the next 12 months.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX 200 share that could be destined to outperform the benchmark this year if the market booms is Temple & Webster.
It is Australia's leading online-only furniture and homewares retailer. While discretionary spending has been under pressure as interest rates increase, Temple & Webster has continued to grow while investing in its platform, logistics, and customer experience.
The long-term opportunity remains compelling for the company and investors. Online penetration in furniture retail is still relatively low compared to other categories and Western markets. This leaves plenty of room for growth over the next decade.
The team at Macquarie thinks that recent share price weakness has created a buying opportunity for Aussie investors.
It recently put an outperform rating and lofty $24.15 price target on Temple & Webster's shares. Based on its latest share price of $12.66, this suggests that upside of approximately 90% is possible for investors between now and this time next year.
