Artificial intelligence is changing the game for many companies on the ASX, in good ways and bad.
Macquarie has identified two ASX 200 companies that will benefit from the use of AI, but it's fair to say the companies are nothing at all alike.
Let's look at the companies they are tipping as winners.
Image source: Getty Images
Megaport Ltd (ASX: MP1)
Megaport shares have jumped about 70% over the past month alone, but Macquarie is backing this company to more than double again.
Part of the reason Megaport is so attractive is that it has been winning some big contracts recently.
Just this week, it announced that its subsidiary Latitude.sh had secured three major GPU, CPU, network and storage contracts across two customers, "reinforcing Megaport's position as a critical infrastructure partner in the accelerating AI ecosystem''.
Megaport said further:
These binding, fixed-term contracts secure committed long-term revenue irrespective of usage, delivering strong returns and aligning with our infrastructure and capital deployment strategies. The combination of Megaport's foundational network infrastructure automation with Latitude.sh's compute and storage capabilities has created a global automated infrastructure platform, enabling the combined Group to pursue and secure new value-accretive opportunities.
So what does the company actually do? In short, it provides a "network-as-a-service" platform that allows its customers globally to access computing and storage facilities.
Megaport added this week that the market opportunity remained large.
Since the acquisition of Latitude.sh, Megaport has assessed and continues to evaluate a significant and increasing number of comparable opportunities enabled by its automated global infrastructure capabilities. The Company will remain highly disciplined in assessing similar opportunities, applying rigorous criteria across counterparty credit quality, committed contract terms, attractive paybacks3, and overall returns.
The new customers announced this week were both US-based technology providers.
Following the new deal announcement, Macquarie issued a research note to its clients with a price target on Megaport shares of $26.30, compared to $13.05 currently, implying potential upside of more than 100%.
Breville Group Ltd (ASX: BRG)
Macquarie believes that Breville, the coffee machine and small appliance maker, could benefit from AI in a very different way.
One of the growth drivers for Breville, Macquarie says, is entering new markets, and they believe that AI "will assist with licencing, regulation and safety requirements''.
Macquarie says that Breville's sales in China, Korea, Mexico, and the Middle East grew at better than 50% in the first half of FY26.
They went on to say:
China and Korea performance, as well as potential Japan and India entry, could see APAC segment growth accelerate. APAC has the potential to be the fastest growing segment, despite including Australia, BRG's most mature market. Note De'Longhi Coffee products are also available on Amazon in Japan, India and Brazil.
Macquarie has a target price of $37.10 on Breville shares, compared with $28.87 currently.
Breville is valued at $4.11 billion.
