Image source: Getty Images
Goodman Group vs Nextdc shares: Which ASX stock with AI exposure comes out on top?
If you're on the hunt for ASX stocks with exposure to the booming demand for AI infrastructure, Goodman Group (ASX: GMG) and Nextdc Ltd (ASX: NXT) are both front-runners. But they're very different plays: one is Australia's leading industrial property trust, while the other is the country's top home-grown data centre operator. Let's break down their businesses, fundamentals, valuation, and recent price moves to help you decide where you might want to put your money.
The case for Goodman Group
Goodman Group is Australia's largest real estate investment trust (REIT) and operates an integrated property business across 14 countries. It specialises in owning, developing and managing industrial and commercial properties—including logistics hubs, warehouses, and, increasingly, cutting-edge facilities geared towards cloud infrastructure and AI.
A few fundamentals stand out for Goodman Group:
- A hefty market capitalisation of $53.42 billion, putting it among the ASX heavyweights.
- A P/E ratio of 19.42, which looks reasonable for a global property group exposed to future tech trends.
- The dividend yield sits at 1.16% with unfranked payouts, and its dividends have held steady at $0.15 per half-year for several years running.
Goodman's scale means it can win huge development projects—like new hyperscale data centres and logistics hubs—that directly benefit from AI's ever-growing appetite for space, power and connectivity.
The case for Nextdc
Nextdc is the quintessential ASX data centre stock—with a core focus on building and operating state-of-the-art infrastructure tailored specifically to cloud, digital services, and, increasingly, AI workloads. Its flagship data centres are critical to the digital economy, providing secure, high-speed connections for both Aussie and global tech companies.
Three things jump off the page with Nextdc:
- It's much smaller than Goodman, with a market cap of $8.40 billion—arguably a more 'pure play' on AI and cloud megatrends.
- The P/E ratio is a sky-high 93.36, reflecting hefty expectations for future growth rather than immediate profits.
- Nextdc pays no dividend, preferring to reinvest heavily into expanding its footprint and ramping up capacity to capture the next wave of AI and cloud demand.
If you're backing the digital economy and big data, Nextdc gives you direct exposure to the backbone infrastructure that makes AI possible.
Valuation comparison
Here's how these two stack up on key numbers:
| Metric | Goodman Group | Nextdc |
|---|---|---|
| Market Cap | $53.42 billion | $8.40 billion |
| P/E Ratio | 19.42 | 93.36 |
| Dividend Yield | 1.16% (unfranked) | 0.00% |
| Earnings per Share | 1.329 | 0.122 |
| Year-to-Date Return | -16.20% | -7.65% |
The clear contrasts? Goodman is much larger and stands out for its steady (if modest) dividend—though it's unfranked. Nextdc is valued much more optimistically on earnings, as often happens with "growth at all costs" tech infrastructure stocks.
Recent share price performance
Let's look at the past month: from 18 August to 17 September 2026.
Goodman Group's shares started this window at $30.47 and finished at $26.00—a drop of about 14.7%. That's consistent with its negative year-to-date return of -16.20%.
Nextdc began the period at $14.73 and ended at $11.06, marking a fall of about 24.9%. However, its year-to-date return is somewhat better at -7.65%, suggesting earlier 2026 gains have softened the blow.
So, while both have fallen in the short run, Goodman's decline has been less severe over the recent month, but Nextdc has fared a bit better year-to-date.
Which is the better buy?
Here's how I see it. Goodman Group looks like the safer, lower-multiple choice, offering big scale and a steady, if low, dividend. It's exposed to data centre and AI-driven property demand, but as just one part of a broader real estate strategy. Its valuation looks reasonable, but recent price falls reflect market caution toward property and infrastructure assets.
Nextdc, on the other hand, is a genuine pure-play on AI and cloud infrastructure. It's priced for high growth—with that towering P/E and no dividend—because investors expect surging demand to boost profits down the road. But it's riskier: one slip in execution or a slower ramp-up in demand and that valuation could compress quickly.
If I had to choose today, my pick would be Nextdc. Despite a steeper recent correction, I think it offers the most upside for those seeking direct, higher-octane AI exposure, provided you can stomach short-term volatility. Goodman is a solid anchor for a more conservative portfolio, but if it's AI infrastructure 'oomph' you're after, I'd lean towards Nextdc
