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Nextdc vs Megaport shares: Which ASX tech growth share looks better?
If you're exploring fast-growing tech stocks on the ASX, there's a fair chance that Nextdc Ltd (ASX: NXT) and Megaport Ltd (ASX: MP1) are on your radar. Both are data and connectivity specialists, but their businesses, growth profiles, and market appeal have some key differences. Here's how I see Nextdc vs Megaport shares stacking up for investors looking for high-growth exposure to digital infrastructure.
The case for Nextdc
Nextdc is a leader in building and operating data centres across Australia, New Zealand, and Southeast Asia. Its business focuses on co-location services—providing secure spaces, power, cooling, and connectivity for clients to house their servers. Customers can interconnect with each other, as well as global cloud companies and telcos. With more than 1,700 customers as of December 2022, Nextdc enables enterprises of all sizes to boost data security and transfer speeds, all while providing extra options for technical and project support.
A couple of key things jump out at me here:
- Market leadership and scale: With a market cap of $8.54 billion and a huge customer base, Nextdc is a giant in its field domestically.
- Consistent revenue base: While revenue figures aren't quoted, the physical infrastructure and 'sticky' customer relationships suggest recurring income, which I like for business stability.
- Profitability: Nextdc is profitable, posting positive earnings per share of $0.122 and a (lofty) P/E of 95.98.
But, it's important to point out that the company doesn't pay a dividend and has actually delivered a negative year-to-date (YTD) return of -5.05%.
The case for Megaport
Megaport is a different kind of tech play. Instead of owning data centres, Megaport is a global network-as-a-service provider, connecting clients to over 1,100 data centres across 31 countries. Its tech lets customers connect to Amazon Web Services, Azure, Google Cloud, and dozens of other cloud platforms quickly, flexibly, and with no long-term lock-ins. Megaport expanded in late 2025 by acquiring Latitude.sh, pushing into on-demand cloud compute and AI GPU infrastructure. Its operations now span the Americas, Asia-Pacific, and EMEA, with a dedicated Compute arm.
Here's what stands out to me about Megaport:
- Rapid global growth: The company's reach and ability to provide on-demand, flexible cloud connections is unique among local peers.
- Not (yet) profitable: Megaport still has negative earnings per share (-$0.218).
- Impressive share price momentum: MP1's year-to-date return is a massive 39.09%—a big contrast with Nextdc.
Dividends are again off the table, with both companies focused squarely on growth.
Valuation comparison
There's a clear difference in how the market values these two, reflecting their place on the growth–profitability spectrum:
| Metric | Nextdc | Megaport |
|---|---|---|
| Market Cap | $8.54b | $4.00b |
| P/E Ratio | 95.98 | – |
| EPS | 0.122 | -0.218 |
| Dividend Yield | 0.00% | 0.00% |
| Year-to-Date Return | -5.05% | 39.09% |
Nextdc is much larger, is profitable (albeit with rich pricing), and trades at a lower P/E. Megaport is far more expensive on a P/E basis, unprofitable, but clearly has the market excited about its expansion and growth prospects.
Recent share price performance
Looking at closing prices as of 15 September 2026 (not live data), there's a stark difference:
- Nextdc has fallen from $13.81 at the end of August to $11.24—as much as a 4% drop in a single day, and a clear downtrend over these weeks.
- Megaport has shown some volatility, but after a big dip mid-month, quickly bounced and sits at $16.79, up from $16.54 at end of August and up a whopping 39% for the year-to-date. The recent days included an 8.3% one-day fall, but this was swiftly offset by a 2.7% bounce.
I can see investors have recently flocked to Megaport much more enthusiastically than Nextdc.
Which is the better buy?
Comparing Nextdc vs Megaport shares, I'd lean toward Megaport right now if I had to pick just one. Here's why: its revenue growth and commercial momentum look stronger, even though it's not yet profitable. Nextdc is solid and profitable but losing momentum, and its negative YTD return is a worry for a growth stock. That said, paying up for Megaport means accepting a lot of future risk—it's priced for exceptional growth and any slip could hurt. But purely on growth and market momentum, my pick would be Megaport, with the caveat that it's not for those wanting value or stability.
