The best AI stocks on the ASX right now

Here is the case for these ASX AI stocks and what makes each one different.

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Artificial intelligence has produced a long list of buzzy stock ideas. Most of them sit in the United States.

But the infrastructure AI actually runs on, the data centres, the power grids, the networks, is being built right here in Australia.

Three ASX AI stocks are capturing that opportunity in very different but equally compelling ways.

Man with virtual white circles on his eye and AI written on top, symbolising artificial intelligence.

Image source: Getty Images

NextDC: where AI workloads live

NextDC Ltd (ASX: NXT) is Australia's largest independent data centre operator, and the closest thing on the ASX to a direct, pure-play bet on AI infrastructure demand.

The numbers confirm the demand is real and accelerating.

Contracted utilisation surged 60% to 667MW in the March 2026 quarter alone. This was driven by massive contract wins as AI workloads requiring intensive computing power, storage, and connectivity flooded into NextDC's facilities.

The company's forward order book, combined with existing billing, is expected to generate contracted EBITDA in excess of A$1 billion. This is more than four times the midpoint of FY26 guidance, as that contracted capacity converts to revenue progressively from FY26 through FY30.

OpenAI, one of the world's largest and best-funded AI companies, is the foundational customer for NextDC's $7 billion AI data centre campus in Western Sydney. This relationship relationship validates both the strategic importance of Australian AI infrastructure and NextDC's position within it.

The risks are equally visible.

$5 billion in FY27 capital expenditure means execution matters enormously given the large sums of capital invested.

Goodman Group: a surprise ASX AI infrastructure play

Goodman Group (ASX: GMG) is the landlord of the AI revolution.

Before a data centre can be built, someone needs to secure the land, obtain planning approvals, connect the power, and deliver the shell.

That is Goodman's role, and it is an increasingly scarce and valuable one.

Data centres now make up 73% of Goodman's development pipeline, which is on track to reach $18 billion by June 2026. The company possesses a global power bank of 6.4 gigawatts across 16 cities that took years to assemble and that no newcomer can replicate quickly.

This is Goodman's competitive advantage.

Morgans has noted that industry data centre capital expenditure requirements likely exceed global capital market funding capacity. This statement describes a market where the constraint is not demand but the ability to build fast enough.

Consequently, Goodman is positioned on the supply side of that constraint, with secured power, sites, and locked-in capital partners already in place.

On the broker side, Morgans retains a buy rating on Goodman with a $36 price target, and UBS endorses Goodman's outlook with a $36.41 price target.

Megaport: how AI workloads move

Megaport Ltd (ASX: MP1) has changed the most of the three over the past twelve months.

The company was already known as a network-as-a-service provider connecting businesses to cloud platforms.

But its acquisition of Latitude.sh pushed it deeper into the AI infrastructure stack by adding high-performance GPU, CPU, and storage capabilities alongside its core connectivity offering.

Subsequently, Megaport rose almost 50% in FY26, smashing the ASX 200's 3% gain, as the market began to recognise it as an AI infrastructure contender rather than simply a cloud connectivity story.

$254 million in new AI contracts through Latitude.sh, generating $90.6 million in annualised recurring revenue, confirmed that AI demand is already flowing into the business.

CEO Michael Reid described the contract wins as evidence that

Megaport is becoming an essential platform for powering the applications of tomorrow.

The risks across all three ASX AI stocks

However, none of these three ASX AI stocks is without risk.

NextDC's $5 billion FY27 capex plan means any slip in execution or AI demand would hit the stock hard.

Goodman's premium valuation reflects how much the market has already priced into its data centre transition. This leaves little room for disappointment.

Megaport has to prove the Latitude.sh contracts convert into attractive returns over time, not just headline contract values.

Additionally, all three are also sensitive to interest rate movements given their capital-intensive operating models.

Foolish takeaway for ASX AI stocks

NextDC, Goodman, and Megaport each capture the AI infrastructure opportunity from a different angle.

NextDC provides the capacity. Goodman provides the land and power. Megaport provides the connectivity.

For investors who believe AI-driven infrastructure demand will keep accelerating, all three deserve a place on the watchlist.

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Megaport. The Motley Fool Australia has recommended Goodman 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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