Many companies stand to benefit from artificial intelligence, but there are relatively few pure-play AI shares on the ASX.
Artificial intelligence (AI) refers to computer systems designed to perform tasks that typically require human intelligence, such as learning, problem-solving, decision-making, and generating content. Advances in machine learning, large language models, and generative AI are rapidly transforming industries and changing how businesses operate.
The emergence of tools such as AI-powered assistants, autonomous systems, and predictive analytics has accelerated adoption across sectors ranging from healthcare and finance to manufacturing and retail. As a result, investor interest in artificial intelligence has grown significantly in recent years.
In this article, we'll look at investing in ASX artificial intelligence shares and why they may be worth considering for your portfolio.
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What are ASX artificial intelligence stocks?
Companies listed on the ASX that develop, enable, or heavily utilise artificial intelligence technologies are commonly referred to as AI stocks. These businesses may provide AI software, data analytics platforms, specialised hardware such as AI chips and semiconductors, cloud-based services, or AI-powered applications.
Artificial intelligence is increasingly being embedded into products and services across the global economy. Enterprises across the globe are being disrupted and transformed by innovations such as machine learning, generative AI, robotics, computer vision, and autonomous systems. These technologies are helping businesses improve productivity, automate processes, and unlock new revenue opportunities. While many companies are incorporating AI into their operations, only a relatively small number have AI as a core focus of their business model.
Several of the world's largest technology companies have become major investors in artificial intelligence. United States tech giants Amazon.com, Inc. (NASDAQ: AMZN) and Alphabet Inc (NASDAQ: GOOGL, GOOG) are heavily involved in developing artificial intelligence. In Australia, companies including Appen, BrainChip Holdings, and NextDC are benefiting from growing demand for AI technologies and the infrastructure needed to support them. Their investments have helped drive broader adoption of AI technologies across the global economy.
Why invest in artificial intelligence shares?
Artificial intelligence is one of the fastest-growing areas of the technology sector. According to Grand View Research, the global AI market was valued at approximately US$391 billion in 2025 and is forecast to expand to nearly US$3.5 trillion by 2033, representing annual growth of more than 30%.1
Businesses are increasingly adopting AI to automate workflows, analyse large datasets, improve customer experiences, and enhance decision-making. At the same time, growing investment in AI infrastructure, including data centres, cloud computing, and specialised semiconductor technology, is creating opportunities across the broader technology ecosystem.
The rise of generative AI has further accelerated demand. Organisations are deploying AI-powered tools to create content, write software, improve search capabilities, and streamline business operations. As AI capabilities continue to improve and become more accessible, adoption is expected to spread across an increasing number of industries.
For investors, the long-term growth potential stems from both companies that develop AI technologies and those that enable the infrastructure needed to support them. As AI becomes a larger part of the global economy, businesses positioned to benefit from this trend could see significant opportunities for growth.
Top AI stocks on the ASX
There are only a dozen or so stocks listed on the ASX that operate predominantly in the AI space, although we can expect more to list in coming years. They form part of the information technology sector of the ASX. Here are three top AI shares ranked by market capitalisation from high to low.
| Company | Description |
| Brainchip Holdings Ltd (ASX: BRN) | Focused on the commercialisation of a neuromorphic processor that performs artificial intelligence |
| Appen Ltd (ASX: APX) | Provides and improves data used for the development of machine learning and artificial intelligence products |
| NextDC (ASX: NXT) | NextDC operates premium Australian data centres, providing critical infrastructure for cloud computing, AI, and enterprise connectivity |
Brainchip
BrainChip Holdings' (ASX: BRN) principal focus is on the commercialisation of its Akida neuromorphic AI technology, which is designed to bring artificial intelligence processing directly onto computer chips. Inspired by the way the human brain processes information, Akida enables devices to analyse sensor-captured data and make decisions with ultra-low power consumption and minimal reliance on cloud connectivity.
The technology can be used in vision, audio, and edge AI applications across industries including automotive, robotics, aerospace, industrial automation, cybersecurity, and the Internet of Things (IoT). As demand for AI-enabled devices grows, BrainChip aims to position Akida as a solution for organisations seeking fast, energy-efficient AI processing at the edge.
BrainChip continues to expand the commercial reach of its technology through licensing agreements. In 2026, the company signed an IP licence agreement with South Korea-based ASICLAND, giving the semiconductor design company access to Akida for integration into custom system-on-chip solutions. The agreement creates a pathway from evaluation and prototype licences through to production licences and ongoing royalties tied to chip sales.
The global shift towards AI is expected to create significant opportunities for companies operating in edge computing and intelligent devices, with industry forecasts predicting strong growth in the Artificial Intelligence of Things (AIoT) market over the coming decade. While BrainChip's commercial success will ultimately depend on customer adoption and production volumes, its expanding partner ecosystem and licensing model provide additional avenues for future revenue growth.
Appen
A market leader in providing data for the artificial intelligence lifecycle, Appen (ASX: APX) offers a broad range of data modalities used to develop, train, and evaluate AI models. Its services include data annotation, model evaluation, speech and audio collection, computer vision, coding-related tasks, and reinforcement learning environments.
Following a challenging period marked by weaker digital advertising demand and reduced spending from several major customers, Appen has been focused on repositioning the business to capitalise on the rapid growth of artificial intelligence. The company believes demand for high-quality human-generated data is increasing as large language models (LLMs) and other advanced AI systems require more specialised training, testing, and evaluation.
There are signs that the turnaround is gaining traction. Appen reported improved profitability in FY25, with underlying EBITDA increasing significantly and gross margins benefiting from a growing mix of generative AI projects. The company's China business has also delivered strong growth, supported by expanding LLM-related work.
Looking ahead, Appen has reaffirmed its FY26 guidance and expects revenue of between $270 million and $300 million, with an underlying EBITDA margin before foreign exchange impacts of approximately 5% to 10%. While the company remains exposed to the fast-changing AI market, management continues to see positive demand signals from customers developing next-generation AI models.
NextDC Ltd
NextDC (ASX: NXT) operates a network of carrier-neutral data centres that provide critical infrastructure for cloud computing, enterprise IT, and artificial intelligence applications. As demand for data processing, storage, and connectivity continues to grow, the company has established itself as one of Australia's leading data centre operators.
The rise of AI is creating significant demand for the computing power and infrastructure required to train and deploy increasingly sophisticated models. This trend is expected to drive long-term growth in data centre capacity, positioning NextDC to benefit from ongoing investment by cloud providers, technology companies, and enterprise customers.
The company has delivered strong growth in recent years through a combination of increasing customer utilisation and an expanding development pipeline. In the first half of FY26, NextDC reported double-digit revenue growth and higher underlying EBITDA, while contract utilisation increased substantially as customers committed to future capacity. The company currently operates data centres across Australia and has a pipeline of new facilities under development to meet rising demand.
While NextDC remains unprofitable due to the significant capital investment required to build new data centres, management is focused on expanding capacity and capturing a growing share of the AI and cloud infrastructure market. The company's long-term growth prospects are supported by increasing demand for data storage, cloud services, and AI computing, though investors should be mindful of execution risks and its relatively high valuation compared to the broader market.
What might the future hold for AI shares on the ASX?
According to PWC, the future of AI is big business. It predicts a 26% boost in gross domestic product (GDP) for local economies from AI by 2030, stating the technology can transform productivity and the GDP potential of the global economy.4
Continuous research and innovation directed by the tech giants are driving the adoption of advanced technologies in industry verticals such as automotive, healthcare, retail, finance, and manufacturing. For example, healthcare systems are widely adopting artificial intelligence and machine learning algorithms to predict diseases accurately in their early stages based on historical health datasets.
AI is still in an early stage of development, although some early adopters are more advanced. This means a company that isn't even in business could become a market leader in a decade. In the meantime, the simulation of human intelligence by machines will continue to improve, using algorithms to automate and perform tasks commonly done by humans today.
Pros of investing in AI shares
Accelerated adoption: The COVID-19 pandemic accelerated AI adoption, and it is becoming ubiquitous across business processes.
Involvement in revolutionary technology: AI is being touted as having the potential to transform the world. Investors that get in early are in the best position to benefit from this transformation.
And the cons
Volatility: Artificial intelligence shares, like ASX tech stocks more broadly, tend to be volatile. This means share prices can fluctuate significantly in response to economic or market factors.
Specialist technology: It is not easy for non-experts to keep up with the different types of artificial intelligence, such as machine learning, predictive modelling, and pattern recognition, and their impact on businesses on the ground. This means carefully researching ASX shares in the artificial intelligence space is vital.
Are ASX artificial intelligence shares a good investment?
Whether artificial intelligence shares are a good investment depends on your financial situation and investing goals. Australian shares in the artificial intelligence space may be more suited to investors who are comfortable with risk and have a longer time horizon.
If you want exposure to the sector, but don't want to pick stocks, exchange-traded funds (ETFs) provide exposure to companies leading the industry. Some options include BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) and Global X Robo Global Robotics & Automation ETF (ASX: ROBO).
