That scarcity could create opportunities for investors willing to look beyond the obvious names. A handful of smaller ASX AI companies offer exposure to the long-term AI theme, with potential catalysts that could drive significant growth if execution improves.

Two names attracting increasing attention are Appen Ltd (ASX: APX) and Macquarie Technology Group Ltd (ASX: MAQ).

Appen: A risky AI turnaround play

Appen sits directly inside the AI ecosystem. The company provides training data used by many artificial intelligence models, helping businesses build and improve machine learning systems.

However, the journey has been far from smooth. The ASX AI share surged 71% to an annual high of $1.90 in January after a strong quarterly update boosted investor confidence. That optimism faded quickly after the company's next update in April.

While revenue increased 9% to $54.8 million, investors were disappointed by the company's weak profitability. Appen Global's performance was a particular concern, with revenue falling 37% to $19.9 million.

The result triggered a sharp sell-off, sending shares down around 30%. Since then, the recovery has failed to materialise, with Appen shares trading near $0.86 and down around 30% over the past year.

Management has since reaffirmed FY26 revenue guidance of between $270 million and $300 million, ahead of FY25 revenue of $231 million. The key question now is whether demand for AI training data can translate into stronger earnings.

If Appen can prove its turnaround is working, secure new partnerships, and return to sustainable growth, the market could quickly reassess the company's value.

The next major test arrives with its first-half FY26 results in late August.

Macquarie Technology: The infrastructure behind AI

While many investors focus on AI software companies, Macquarie Technology is targeting the infrastructure powering the revolution.

The company operates data centres, cloud services, cybersecurity solutions, and sovereign hosting platforms — all areas expected to benefit from rising AI adoption.

In March, Macquarie Technology secured a $200 million hybrid investment from the government-backed National Reconstruction Fund Corporation.

The funding will support the expansion of sovereign cloud, cybersecurity, and AI infrastructure for government agencies, defence organisations, and critical industries.

Unlike many speculative AI plays, Macquarie Technology already has a profitable business. The ASX AI share has delivered 20 consecutive half-years of operating income growth, demonstrating consistent execution.

As demand for data centre capacity continues rising, additional infrastructure coming online could provide a significant earnings boost.

If investors begin valuing Macquarie Technology closer to established data centre operators such as NextDC Ltd (ASX: NXT), the shares could have further upside.

Foolish takeaway

AI investing is still dominated by global giants, but opportunities exist across the ASX.

Appen offers a higher-risk turnaround opportunity tied directly to AI model development, while Macquarie Technology provides exposure to the essential infrastructure supporting the AI boom.

Neither ASX AI share is guaranteed to succeed, but both show why investors shouldn't overlook the smaller companies helping build the next generation of artificial intelligence.

The post These overlooked ASX AI shares could be tomorrow's winners appeared first on The Motley Fool Australia.

It was the largest IPO in stock market history. And it is just the beginning.

Anthropic is targeting a December 2026 public debut at a forecast first-day market cap of approximately US$1.1 trillion, according to the most current forecasts.

OpenAI, which filed its own confidential S-1 earlier this month, is expected to follow in early 2027 at a comparable valuation.

Together, SpaceX, Anthropic, and OpenAI represent a combined public market value approaching US$4 trillion.

For Australian investors who cannot buy any of these stocks on the ASX, the question is what it means for the companies they can buy.

Why these IPOs matter for ASX investors

The most important consequence of trillion-dollar AI IPOs is not the immediate share price movement in SPCX, Anthropic, or OpenAI.

It is the reallocation of institutional capital that follows.

When capital flows into public AI companies at these valuations, attention and money flow toward every company in the AI infrastructure supply chain, including those listed on the ASX.

The AI thesis is being publicly validated at a scale never seen before.

Three ASX stocks sit directly in the path of that validation.

Betashares Space Industry ETF (ASX: RCKT)

The Betashares Space Industry ETF is already living proof of the thesis.

The fund launched at $14 per unit on 12 May 2026, well before SpaceX listed. It surged approximately 30% in the weeks leading up to the SpaceX IPO as anticipation built.

This served to demonstrate how powerfully public AI IPOs move adjacent listed markets.

RCKT holds 28 companies across the global space economy, with Rocket Lab and AST SpaceMobile as its two largest positions.

SpaceX itself will take time to enter the index, but the attention the listing generates flows directly into RCKT's holdings.

As Anthropic and OpenAI approach their own listings later this year and in 2027, the same dynamic will play out across AI infrastructure stocks globally.

For ASX investors, RCKT captures that excitement in a single trade.

NextDC Ltd (ASX: NXT)

NextDC is Australia's largest independent data centre operator and has the most direct relationship with the AI IPO wave of any ASX company.

OpenAI is NextDC's foundational customer for its US$7 billion AI data centre campus in Western Sydney.

When OpenAI lists publicly at close to US$1 trillion, that customer relationship may be permanently reframed.

NextDC has already raised its FY 2026 capital expenditure guidance to between $2.7 billion and $3.0 billion as contracted utilisation surged 60% in the March quarter.

Morgans carries a buy rating on NextDC with a $19 price target, implying upside of approximately 36% from current levels.

Macquarie Technology Group Ltd (ASX: MAQ)

Macquarie Technology Group plays a different but equally important role.

Anthropic's Claude platform is already being deployed by Australian government agencies and critical infrastructure operators who cannot use offshore AI infrastructure.

Anthropic's annualised revenue reportedly crossed $47 billion in May 2026, and the company is on track to post its first operating profit in Q2 2026.

As Anthropic's public listing raises its enterprise profile globally, the demand for sovereign Australian AI infrastructure will only grow.

Macquarie Technology is the primary beneficiary of that demand, backed by a $200 million National Reconstruction Fund investment and 20 consecutive half years of operating income growth.

Canaccord Genuity upgraded MAQ shares following the NRF investment, predicting significant upside from current levels.

The risks

History offers a clear warning about mega-cap IPOs.

According to Professor Jay Ritter's updated long-run IPO statistics, the average newly listed company underperforms its peers by approximately 8% per year over the five years following its debut.

If Anthropic or OpenAI disappoint in their early trading sessions, the repricing could weigh on AI infrastructure stocks.

Foolish Takeaway

SpaceX has listed. Anthropic targets December. OpenAI follows in 2027.

For ASX investors seeking exposure to the AI IPO wave without buying US-listed stocks, RCKT, NXT, and MAQ each offers a distinct way to participate.

The post After SpaceX, the Anthropic and OpenAI IPOs are next. Here is what ASX AI investors need to know appeared first on The Motley Fool Australia.

SpaceX (NASDAQ: SPCX) prices its shares tomorrow, 11 June 2026, at US$135 per share, implying a valuation of approximately US$1.75 trillion, and begins trading on the Nasdaq under the ticker SPCX on Thursday, 12 June.

That would make it the largest IPO in stock market history, surpassing Saudi Aramco's US$1.7 trillion listing in 2019.

Anthropic, the AI company behind the Claude platform, has filed confidentially with the SEC at a reported valuation of approximately US$900 billion, targeting a public debut as soon as October.

And just this week, OpenAI also filed confidentially for an IPO, with the combined three-company valuation potentially exceeding US$3.6 trillion.

None of these companies will be available on the ASX. But all three will reshape how the market thinks about AI stocks, including the ones that are available here.

Why these IPOs change everything for ASX AI shares

For the first time, the world's most important AI infrastructure companies are being given public market price tags.

That is important for ASX investors for two reasons.

First, successful listings at these valuations validate the entire AI investment thesis at a scale that no private funding round has ever achieved.

Second, the capital flows these IPOs generate will not stay in the United States.

Institutional investors across Asia-Pacific, including Australia's own superannuation funds, will look to rebalance AI exposure following the listings.

This rebalancing will direct fresh attention and capital toward ASX-listed AI infrastructure plays.

Three in particular stand out.

Betashares Space Industry ETF (ASX: RCKT)

The most direct ASX beneficiary of the SpaceX listing is the Betashares Space Industry ETF, which launched on 12 May 2026.

The ETF has had a wild ride as SpaceX anticipation built throughout the month.

RCKT tracks the Solactive Space Industry Index, holding 28 companies across the global space economy with Rocket Lab and AST SpaceMobile as its two largest positions.

SpaceX will need to meet index inclusion criteria before RCKT can formally hold it, a process that typically takes several months.

In the meantime, RCKT remains the clearest and most liquid ASX proxy for investor excitement around the space economy that SpaceX is bringing.

NextDC Ltd (ASX: NXT)

NextDC is Australia's largest independent data centre operator.

The company is building a $7 billion AI data centre campus in Western Sydney with OpenAI as its foundational customer.

Now that OpenAI has filed for its own IPO, that customer relationship takes on new significance.

For context, Anthropic is paying SpaceX's xAI division US$1.25 billion per month for exclusive compute access. This illustrates just how voracious AI companies' appetite for data centre capacity has become.

Every dollar an AI company spends on compute creates demand for the infrastructure NextDC provides.

Perhaps as a result, NextDC raised its FY 2026 capital expenditure guidance to between $2.7 billion and $3.0 billion as contracted utilisation surged 60% in the March quarter.

Macquarie Technology Group Ltd (ASX: MAQ)

Macquarie Technology plays a different but equally important role in the AI IPO story.

Anthropic's Claude platform is increasingly being adopted by Australian government agencies, financial institutions, and critical infrastructure operators.

Many of these organisations cannot use offshore AI infrastructure for data sovereignty reasons.

This has created a captive market for Macquarie Technology, which provides sovereign cloud and AI infrastructure backed by a $200 million National Reconstruction Fund investment.

As Anthropic's public listing raises its enterprise profile globally, the demand for sovereign Australian AI infrastructure will only grow.

The risk worth acknowledging for ASX AI shares

History offers a warning.

Of the five largest IPOs in modern history, only Visa significantly outperformed markets after listing.

On the other end, Saudi Aramco still trades below its issue price.

If SpaceX disappoints in its first weeks of trading, the repricing conversation that follows would weigh on AI stocks globally, including the RCKT ETF, NextDC, and Macquarie Technology.

Foolish Takeaway

SpaceX prices tomorrow, Anthropic is months away from listing, and OpenAI just filed.

For ASX investors who want exposure to the AI IPO wave without buying US-listed stocks, the RCKT ETF, NextDC, and Macquarie Technology offer three unique ways to participate.

The post The SpaceX and Anthropic IPOs will massively impact ASX AI shares appeared first on The Motley Fool Australia.

Anthropic, the San Francisco-based AI company behind the Claude platform, filed confidentially with the SEC on 2 June 2026 at a reported valuation of approximately US$950 billion to US$1 trillion.

That would make it, alongside the SpaceX IPO already in progress, one of the two largest stock market debuts in history.

For Australian investors, Anthropic will not be available on the ASX.

However, two ASX-listed companies are already directly embedded in the infrastructure that Anthropic depends on to power its AI models.

Both stand to benefit materially as Anthropic's public debut draws global attention and capital to the AI infrastructure theme.

What Anthropic actually does

Anthropic was founded in 2021 by former OpenAI employees, including Dario Amodei and Daniela Amodei.

The company competes directly with OpenAI's ChatGPT and Google's Gemini, and its Claude platform holds approximately 5% of the chatbot market, according to eMarketer.

More importantly for the investment case, Anthropic's annualised revenue reportedly crossed US$44 billion as of May 2026. Furthermore, the company is on track to post its first-ever operating profit in Q2 2026.

As more and more capital flows into AI themes, the infrastructure layer beneath the AI stack tends to be a direct beneficiary.

NextDC Ltd (ASX: NXT)

NextDC is Australia's largest independent data centre operator.

The company is building a massive $7 billion AI data centre campus in Western Sydney, with OpenAI signed on as its foundational customer.

As Anthropic scales its operations and increases its compute consumption to compete with OpenAI's growing infrastructure, Australian data centre capacity becomes an increasingly critical resource.

NextDC has been growing at an extraordinary pace to meet that demand.

In the first half of FY 2026, NextDC raised its FY 2026 capital expenditure guidance to between $2.7 billion and $3.0 billion. Contracted utilisation surged 60% to 667MW in the March quarter alone.

The Anthropic IPO adds a further dimension to that thesis: as AI company valuations are revalidated at trillion-dollar levels, the infrastructure enabling those companies becomes even more strategically important and even harder to replicate.

Macquarie Technology Group Ltd (ASX: MAQ)

Macquarie Technology plays a different but equally important role in the Australian AI infrastructure stack.

Where NextDC focuses on hyperscale data centre capacity for large cloud and AI customers, Macquarie Technology specialises in sovereign cloud and cybersecurity infrastructure for Australian government agencies and critical industries.

That is a market where Anthropic's Claude platform and similar AI systems are being deployed. The strict requirements within these deployments are that data must remain onshore and secure.

Macquarie Technology has now delivered 20 consecutive half years of operating income growth. This track record reflects the growing and non-discretionary nature of its customer base.

The company's $200 million National Reconstruction Fund investment, announced in March 2026, will fund the IC3 Super West data centre expansion designed specifically for AI workloads requiring the highest levels of security and sovereignty.

Anthropic's Claude platform is increasingly being adopted by Australian government agencies, financial institutions, and critical infrastructure operators.

Many of these organisations cannot use offshore AI infrastructure for regulatory or security reasons.

This creates a captive market for sovereign cloud providers operating on Australian soil.

Macquarie Technology is positioned to capture that demand. And no overseas hyperscaler can replicate what it offers in terms of data sovereignty and security clearance.

The broader AI IPO wave

The Anthropic IPO is not an isolated event.

SpaceX's roadshow began this week, targeting a US$2 trillion valuation. OpenAI is expected to file later in 2026 at a similarly extraordinary valuation.

Together, these listings represent the single largest concentration of AI industry capital ever brought to public markets simultaneously.

Investment banks, including JPMorgan, Goldman Sachs, and Morgan Stanley, leading these listings, believe the liquidity impact is manageable. There is an estimated US$8 trillion sitting in US money market funds, providing the base demand for these deals.

As that capital flows into public AI companies, the attention and institutional interest in AI infrastructure plays, including those listed on the ASX, is likely to intensify rather than diminish.

The risks worth knowing

Both Nxt DC and Macquarie Technology carry meaningful capital expenditure commitments and are sensitive to interest rate movements given their asset-heavy models.

The Anthropic IPO has not yet been confirmed with a specific date or price. If it is delayed or prices are below expectations, the near-term sentiment benefit for AI infrastructure stocks could be muted.

Furthermore, both stocks have already run significantly in recent years, which limits the margin of safety at current prices.

Foolish Takeaway

Australian investors cannot buy Anthropic directly on the ASX.

But what they can buy is the infrastructure Anthropic depends on to operate.

NextDC and Macquarie Technology are two of the most credible and directly positioned ASX-listed beneficiaries of the AI mega-IPO wave now unfolding.

As trillion-dollar AI valuations are validated in public markets for the first time, the infrastructure enabling those companies becomes not just an investment theme but a critical asset class.

The post The Anthropic IPO could be the next big catalyst for ASX AI infrastructure stocks appeared first on The Motley Fool Australia.

And in March 2026, the government has put its money where its mouth is.

Macquarie Technology Group Ltd (ASX: MAQ) secured a $200 million hybrid investment from the National Reconstruction Fund Corporation. This is the largest single technology sector investment the NRF has made to date.

The funding will help ensure that critical digital infrastructure and information, including the data of everyday Australians, remains securely onshore.

This is a bet by Australia's sovereign investment fund on the most important digital infrastructure company many Australian investors have never heard of.

What Macquarie Technology actually does

Macquarie Technology is not a household name, but its customers are.

The company provides sovereign cloud, cybersecurity, data centre, and telecommunications services to Australian businesses, critical infrastructure operators, and government agencies.

Its data centre in Canberra is home to some of Australia's most sensitive government data. The company's cloud platform hosts critical workloads for departments that cannot risk their information residing on offshore servers.

Unlike many speculative AI stocks, Macquarie Technology already generates meaningful earnings and has very visible demand drivers.

The company has now delivered 20 consecutive half-years of operating income growth, an impressive track record in any market environment.

The $200 million investment and what it funds

The NRF investment is structured as a hybrid note, part debt and part equity, making it the first of its kind from the NRF.

Management plans to draw down the first $100 million by this month and the second tranche by March 2027.

The capital will fund the expansion of Macquarie Technology's IC3 Super West data centre in Sydney. This facility is designed specifically for AI infrastructure workloads requiring the highest levels of security and sovereignty.

The investment will create 140 high-skilled jobs in cybersecurity, AI and software engineering.

CEO David Tudehope said at the time of the announcement:

This investment will accelerate our ability to provide the most secure, sovereign AI infrastructure in Australia, allowing our customers to harness the rapid growth of AI while ensuring their critical data never leaves Australian shores.

The broker view on MAQ shares

The broker community responded positively to the NRF investment.

Canaccord Genuity upgraded MAQ shares following the announcement, with an upgraded price target predicting significant upside from current levels.

The broker noted the NRF investment validates Macquarie Technology's unique position in the Australian market and dramatically improves its capacity to fund growth without relying on traditional equity raisings.

The ASX AI share has now delivered 20 consecutive half-years of operating income growth. This metric has given Canaccord confidence the momentum will continue as the IC3 Super West expansion comes online.

The risks worth knowing

Macquarie Technology is not the most liquid stock on the ASX, with a market capitalisation of approximately $1.96 billion placing it firmly in mid-cap territory.

That means institutional buying can move the price significantly in either direction.

The company operates in a competitive market for cloud and data centre services, even if the sovereign angle provides some insulation from hyperscale competition.

Furthermore, the government contract market can be lumpy, with large tenders taking time to convert to revenue.

Foolish takeaway

Goodman Group (ASX: GMG) and NextDC Ltd (ASX: NXT) attract most of the data centre headlines on the ASX.

But Macquarie Technology is quietly something different and arguably more defensible: the sovereign AI infrastructure layer that Australian government agencies and critical industries cannot outsource offshore.

The NRF investment provides $200 million of growth capital at favourable terms, 20 consecutive half-years of earnings growth provide the track record, and Canaccord's upgraded price target provides the broker conviction.

For investors who have not yet discovered Macquarie Technology shares, now may be the time to look more closely.

The post Why Macquarie Technology is one of the most interesting AI infrastructure plays on the ASX appeared first on The Motley Fool Australia.

SGH is a leading Australian diversified operating and investment Group with market leading businesses and investments in Industrial Services, Energy and Media sectors. 

The company has seen its share price slip almost 12% year to date, however brokers are anticipating a recovery throughout the next 12 months. 

What did the company report at its investor day?

According to the release, FY26 EBIT growth is expected to be within the range of low to mid single-digit. 

The company also reported HY26 EBIT up 22% on 2H FY25.

Bell Potter noted that the company also plans to generate $100m in benefits from AI initiatives over FY26–27.

The company also aims to grow earnings steadily over time, maintain strong returns on investments, and eventually increase its market value to $30bn and join the ASX50.

Management remains positive on long-term demand from Australian infrastructure spending, mining growth, ageing mining equipment needing maintenance, and stronger gas and LNG markets. 

Other updates included a new property development joint venture for Boral, plans for better equipment utilisation at Coates, and continued focus on improving Boral's profit margins.

Bell Potter slightly lowered its earnings forecasts for SGH because it now expects weaker revenue growth and margins across some divisions.

Updated targets from Bell Potter

Based on this guidance, the team at Bell Potter lowered its price target to $50.00 (previously $56.00). 

However, from yesterday's closing price of $41.30, this indicates roughly 21% upside. 

We view SGH's market valuation as undemanding. SGH has articulated a robust medium and long-term valuation creation framework at its FY26 Investor Day, underpinned by reasonable operational targets. Any forthcoming M&A activity would likely be well received by the market.

It's worth noting that Bell Potter isn't the only broker with a positive outlook for this ASX industrials stock. 

The team at Macquarie increased its price target on SGH shares to $50.40 following the investor day. 

Macquarie said while macroeconomic conditions remained complex, SGH's execution remains strong, "and Boral likely continues to support the majority of near-term growth".

Additionally, RBC Capital Markets also recently released a report on SGH, with a price target of $47.

These targets all indicate an upside hovering around 20% for this ASX industrials stock. 

The post This ASX industrials stock could be set to race 20% higher: Expert appeared first on The Motley Fool Australia.

That scarcity could create opportunities for investors willing to look beyond the market's obvious winners. A handful of lesser-known ASX AI shares still offer the kind of catalysts, operating leverage, and re-rating potential that could drive outsized returns.

Here are two names increasingly catching investor attention.

Macquarie Technology Group Ltd (ASX: MAQ)

First up is Macquarie Technology. This ASX AI share is rapidly emerging as one of the clearest "picks and shovels" plays on the AI boom.

As artificial intelligence adoption accelerates, demand is exploding for data centres, cloud infrastructure, cyber security, and sovereign hosting solutions. These are exactly the areas where Macquarie Technology is investing aggressively.

In March, the company secured a $200 million hybrid investment from the government-backed National Reconstruction Fund Corporation.

The funding will help accelerate development of sovereign cyber security and cloud services and AI infrastructure for government agencies and defence and critical industries. Management plans to draw down the first $100 million by June 2026 and the second tranche by March 2027.

Unlike many speculative AI stocks, Macquarie Technology already generates meaningful earnings and has very visible demand drivers. The ASX AI share has now delivered 20 consecutive half-years of operating income growth, an impressive track record in any market environment.

As more data centre capacity comes online and utilisation rates rise, earnings could expand rapidly.

If the market begins valuing the company more like established data centre operator NextDC Ltd (ASX: NXT), investors could see significant upside from current levels.

Appen Ltd (ASX: APX)

Then there's Appen. This is unquestionably the more speculative of the two ASX AI shares, but it may also carry the greatest upside potential.

Appen provides training data used by artificial intelligence models, placing it directly in the centre of the generative AI ecosystem.

After several difficult years, there are finally signs the business may be stabilising. For the March quarter, Appen reported revenue of $54.8 million, up 9% from the prior corresponding period. That marks an encouraging shift after a prolonged period of declining sales.

Profitability also improved. Underlying EBITDA came in at $1 million, compared to a $1.5 million loss a year earlier.

The strongest momentum is clearly coming from China. Revenue in the region surged 88% to $34.9 million, driven by growing demand tied to generative AI projects. The division exited the quarter with an annualised revenue run rate above $144 million.

Outside China, however, conditions remain challenging. The Appen Global segment saw revenue tumble 37% and posted an EBITDA loss of $3.1 million, reflecting the uneven nature of project-based work.

Even so, after the share price collapsed almost 90% over the past five years, expectations are now extremely low.

That creates an interesting setup. If demand for high-quality AI training data continues recovering or if Appen secures new strategic partnerships, even modest operational improvements could spark a sharp market re-rating.

The post These under-the-radar ASX AI shares are starting to turn heads appeared first on The Motley Fool Australia.

Since then, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has recovered by 12%.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) has risen 2.1% over the same period.

Let's look back and see what happened to the share prices of the top 10 ASX tech shares during the downturn.

Then, let's compare that data to the performance of BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC).

Given the popularity of exchange-traded funds (ETFs) these days, I'm curious as to whether the only ASX tech ETF tracking Australian technology shares alone provided any protection against the sector downturn.

One of the appeals of ETFs is that they represent a basket of stocks. This can reduce the impact of a large price drop in a single stock.

But what if a whole sector falls? Does the structure of ASX ETFs provide any protection for investors?

Let's conduct a litmus test.

Top 10 ASX tech shares

As stated earlier, the S&P/ASX 200 Information Technology Index fell 48% between 29 August and 30 March, and has rebounded 12% since.

Let's compare that to the share price falls and recoveries of the top 10 tech shares on the market.

How did ATEC ETF do?

The ATEC ETF fell 42% between 29 August and 30 March compared to the 48% drop for the S&P/ASX 200 Information Technology Index.

Since then, ATEC ETF has recovered 8% compared to a 12% lift for the ASX 200 Info Tech Index.

So, the fall was not as bad with ATEC ETF during the tech rout, but the recovery has not been as fast as the ASX 200 tech sector.

Interesting.

ATEC tracks the S&P/ASX All Technology Index (before fees and expenses).

It's the only option for investors who want exposure to Australian technology through an ASX ETF.

However, it's important to know that the S&P/ASX All Technology Index is different to the S&P/ASX 200 Information Technology Index.

The ASX 200 Info Tech Index is comprised of the top 200 tech companies ranked and weighted by market capitalisation.

The All Tech Index is much smaller, comprised of just 45 companies, and only 56% are technically in the tech sector.

The others are from the communications, industrials, healthcare, and financial sectors, but their operations are heavily tech-related.

For example, the largest holding in ATEC is ASX 200 industrials share, Computershare Ltd (ASX: CPU) at 10%.

The fourth biggest holding is Car Group Limited (ASX: CAR), which is a communications sector share, at 8.9%.

The owner of realestate.com.au, REA Group Ltd (ASX: REA), is the sixth biggest holding at 7.5%. REA is also a communications share.

At No. 8 is ASX 200 healthcare share Pro Medicus Ltd (ASX: PME) at 6%.

At No. 9 is another communications share, Seek Ltd (ASX: SEK) at 4.2%.

This diversity of sectors, along with the less volatile nature of ETFs, appears to have provided some protection during the tech sector rout.

The post ASX tech shares vs. ATEC ETF: How they fared during sector downturn appeared first on The Motley Fool Australia.

At the time of writing the shares are up 6.5% to $46.30 a piece. At one point this morning the tech company's shares climbed as high as $46.80 each.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.6% for the day at the time of writing and the S&P/ASX 200 Information Technology Index (ASX: XIJ) is up 1.1% and trading at a two-month high.

The latest uptick means the tech shares have climbed over 12% in the past five days alone. The jump also means that WiseTech shares have now rebounded 27% from a multi-year low of $36.53 recorded on Monday last week.

There is still a low way to go for WiseTech shares, though. Even after the rebound, the shares are still down 32% for the year-to-date and a huge 51% lower than this time last year.

What is happening to WiseTech shares?

It's been a bloodbath for WiseTech shares over the past 10-months, with the tech company hit by multiple and consecutive headwinds which sent its share price tumbling. The downturn accelerated in 2026.

WiseTech was caught up in a tech-sector wide sell-off earlier this year after investors became concerned about the implications of AI on traditional software models. Many were worried that AI tools might replace or reduce demand for subscription-based software. 

Shortly later, concerns about escalating conflict in the Middle East spooked investors further. Global sharemarket uncertainty saw investors turn their back on high-growth technology stocks like WiseTech and rotate towards more stable assets instead.

There hasn't been any price-sensitive news out of WiseTech to explain today's price hike, but the company did confirm it will participate in the 2026 Macquarie Australia Conference in Sydney on 5-6 May 2026. 

WiseTech said it will outline its strategy for the next phase of long-term growth at the conference.

In the materials, WiseTech confirms an FY26 underlying EBITDA guidance range of US$598.5 million to $637.5 million.

The company expects margins expected to be lower short term (around 40-46%) due to integration impacts, most notably from its e2open acquisition.

It's likely that a rebound of investor confidence in WiseTech and also ASX tech shares overall, is also helping today's share price climb.

Can the shares keep climbing?

It's possible that could be the beginning of a good rally for WiseTech shares.

According to TradingView data, analysts are very bullish about the outlook for the tech over the next 12 months.

The majority (16 out of 17) have a buy or strong buy rating on the stock. That's an upgrade from 14 out of 16 analysts with a buy or strong buy rating in mid-April. 

The average target price is $76.55, which implies a potential upside of 67% over the next 12 months. Although others think that the tech shares could climb up to 152% to $115.78.

The post WiseTech shares are flying 6.5% higher today. Can they keep going? appeared first on The Motley Fool Australia.

The ASX tech rally has been anything but broad. While WiseTech Global Ltd (ASX: WTC) shares and others like Xero Ltd (ASX: XRO) have surged on the back of the AI and SaaS boom, a second wave of opportunities may be quietly forming.

Here are three ASX AI shares that stand out.

Macquarie Technology Group Ltd (ASX: MAQ)

First up is Macquarie Technology Group. This ASX AI share is emerging as one of the clearest "picks and shovels" plays on artificial intelligence. As demand for AI accelerates, so too does the need for data centres, cloud infrastructure, and secure sovereign hosting. These are all areas where Macquarie Technology is investing heavily.

Unlike many speculative AI shares, this is a business with real earnings and tangible demand drivers. As new capacity comes online and utilisation rates increase, earnings could scale quickly.

If that happens, the market may start valuing it more like established data centre leader NextDC Ltd (ASX: NXT) — and that could mean significant upside.

Objective Corporation Ltd (ASX: OCL)

Next ASX AI share is Objective Corporation. This is a classic under-the-radar SaaS compounder, like WiseTech shares. Objective provides document management and compliance software, primarily to government and regulated industries — making its customer base incredibly sticky.

While it doesn't grab headlines, it has all the hallmarks of a long-term winner: recurring revenue, high margins, and disciplined growth. Importantly, the rise of AI is likely to enhance its offering, particularly in automating workflows and extracting insights from large volumes of documents.

Because this AI share flies under the radar, Objective hasn't enjoyed the same valuation expansion as some of its peers. But if it continues to execute, investors may start to re-rate the stock accordingly.

Appen Ltd (ASX: APX)

Finally, there's Appen. This is the most speculative of the three ASX AI shares, but also the one with the highest potential upside. Appen provides training data used in artificial intelligence models, placing it right in the middle of the AI ecosystem.

After a sharp decline in recent years, expectations are now extremely low. That creates an interesting setup. If demand for high-quality training data rebounds or the company secures new partnerships, even modest improvements in performance could trigger a sharp re-rating.

Of course, the risks remain elevated, particularly as the AI landscape evolves. But for investors with a higher risk tolerance, Appen could offer significant leverage to any recovery in sentiment.

Foolish Takeaway

The bottom line is that the ASX AI rally may still have further to run, but the biggest gains might not come from the likes of WiseTech and Xero that have already surged.

Instead, it could be these under-the-radar ASX AI shares, operating just beneath the surface, that deliver the next wave of standout returns.

The post 3 under-the-radar ASX AI shares that could be the next WiseTech appeared first on The Motley Fool Australia.

Energy prices and supply chain networks impact almost all corners of the global economy.

So it wasn't surprising to see a broad market sell-off over the first three weeks of March as multiple industries assessed the damage.

The sell-off now leaves room for investors to buy the dip.

A two-week ceasefire is underway amid hopes of a long-term deal between the US and Iran soon.

Brokers have reviewed their ratings after many shares fell, and they see good opportunities across a number of industries.

Here are some of the ASX All Ords shares elevated to strong buy consensus ratings after last month's turmoil.

6 ASX All Ords shares newly upgraded to strong buy ratings

These ASX shares have just been upgraded to strong buy consensus ratings among analysts on the CommSec platform.

A consensus rating represents the average rating among analysts.

Kingsgate Consolidated Ltd (ASX: KCN)

The Kingsgate Consolidated share price fell 38% in March alongside a big fall in the gold price.

In April so far, the ASX All Ords gold share is up 19% to $5.22 at yesterday's close.

MA Financial is among the brokers that have upgraded Kingsgate shares.

The broker also lifted its 12-month share price target from $6.85 to $6.95.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The Pinnacle Investment Management share price fell 10% in March.

This month, the ASX All Ords financial shares is up 4% to $14.63.

Canaccord Genuity is buy-rated on Pinnacle shares with a $24.53 target.

Zip Co Ltd (ASX: ZIP)

The Zip share price fell 19% in March.

This month, the ASX All Ords financial share is up 19% to $1.84.

Blackwattle holds Zip shares in its Small Cap Quality Fund.

Portfolio managers Robert Hawkesford and Daniel Broeren describe Zip as 'one of the most compelling value opportunities on the ASX'.

WA1 Resources Ltd (ASX: WA1)

The WA1 Resources share price fell 20% in March.

This month, the ASX All Ords copper share is up 9% to $15.19.

Canaccord Genuity is buy-rated on WA1 Resources shares with a $32 target.

Macquarie Technology Group Ltd (ASX: MAQ)

The Macquarie Technology share price fell 12% in March.

In April so far, the ASX All Ords tech share is up 12% to $66.60.

Canaccord Genuity is also buy-rated on this stock with a $95 target.

Santana Minerals Ltd (ASX: SMI)

The Santana Minerals share price fell 27% in March.

This month, the ASX All Ords gold share is up 2% to 68 cents.

Shaw & Partners has a buy rating and a $2.15 target on Santana Minerals shares.

Further reading

Check out 7 ASX 200 shares just upgraded to strong buy ratings, too.

The post 6 ASX All Ords shares elevated to strong buy status after March sell-off appeared first on The Motley Fool Australia.

So what did the company announce this week?

Major government investment

Macquarie Technology said that it had secured a $200 million hybrid investment from the National Reconstruction Fund Corporation, which it said was "established by the Australian Government to support nationally significant technological innovation, digital infrastructure, defence and national security''.

The investment would be in the form of unsecured and non-convertible securities, and would be issued in two tranches, on or before June 1, 2026 and March 1, 2027.

The company said regarding the investment:

The proceeds of the issue will be used by the company and its subsidiaries for the development of sovereign secure digital infrastructure and cyber security services with strategic product development initiatives focused on its Cloud Services and Government business segment supporting accelerated use of sovereign cloud services and AI by Australian government agencies, the Department of Defence, defence industry, critical infrastructure sectors, and Australian businesses. This investment by NRFC as a long-term, strategic partner, provides an efficient, non-dilutive form of capital that significantly enhances the group's balance sheet flexibility and an initial financing initiative to obtaining incremental funding to support strategic growth initiatives.  

Shares looking cheap

The team at Cannaccord Genuity said it sounded like the investment, which would sit on the balance sheet as non-dilutive equity, would be used for future capital investments into sovereign cloud infrastructure and the use of AI by government agencies.

They said the investment was "a strong endorsement of Macquarie Technology Group's business generally and the quality of its Cloud Services & Government (CS&G) offering more particularly, in our view''.

Canaccord has estimated that, calculated at the end of December last year, the instrument would reduce Macquarie Technology's gearing position from 27% net debt to equity to 20%.

They added:

We read this announcement as a positive for MAQ because (1) attracting an investor like NRF, whose due diligence we believe to be very extensive, is a significant endorsement of MAQ's business generally and CS&G's capabilities in particular, and (2) the funds are to be deployed to grow areas of the business outside the Data Centre segment, and specifically CS&G. We noted in our update following the 1H FY26 results that the CS&G segment has been in a growth lull for some time and that the business as a whole seemed to perform much better when CS&G was growing at a solid rate. In addition, we view the use of this instrument leaves a wide array of funding options available for MAQ's future growth requirements in other areas.

Canaccord has a price target of $95 on Macquarie Technology Group shares compared with just $65.21 currently.

The company was valued at $1.73 billion at Wednesday's close.

The post This All Ords technology stock could shoot the lights out: broker appeared first on The Motley Fool Australia.

Four ASX shares rising more than most today are listed below. Here's why they are pushing higher:

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price is up 7% to $5.53. This morning, this rare earths developer announced new exploration results at the Sulista Project in Brazil. The company revealed that its latest exploration campaign has delivered excellent results across multiple targets, materially expanding the Sulista mineralised footprint and reinforcing Sulista East as the anchor deposit within a rapidly growing district-scale rare earth development opportunity. Brazilian Rare Earths' CEO and managing director, Bernardo da Veiga, commented: "Together, these results strengthen the basis for our near-term scoping study and support our hub-and-spoke development strategy across the Rocha da Rocha Province."

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is up over 12% to $19.95. After the market close on Tuesday, this rare earths giant announced a revised long-term supply agreement with JARE, extending to 2038 and establishing a firm offtake for 5,000 tonnes of NdPr per year at a US$110/kg price floor. Lynas' CEO and managing director, Amanda Lacaze, said: "We are delighted that the revised 12-year availability and supply agreement with JARE will support both Japanese industry and the continued growth and development of Lynas. This new agreement will ensure continued reliable supply of rare earth products that are strategically important to Japanese industry and its global market, and at the same time, the implementation of fair market pricing will reduce price volatility for Lynas and enable continued growth and investment in our operations."

Macquarie Technology Group Ltd (ASX: MAQ)

The Macquarie Technology share price is up 5% to $65.95. This morning, Macquarie Technology revealed that it has secured a $200 million hybrid investment from the government-backed National Reconstruction Fund Corporation. It notes that this funding will support the company's development of sovereign cyber security and cloud services for critical industries and government.

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda Mining share price is up 18% to $1.38. This has been driven by the release of an update on the miner's Round Dam gold deposit in Western Australia. Management revealed that its new mineral resource is 25.6Mt at 1.6g/t for 1.330 million ounces. This is up materially from 125,000 ounces previously. Ora Banda's managing director, Luke Creagh, said: "We are incredibly excited by the potential of Round Dam to become a substantial mining operation, as the company continues to advance its study work into the construction of a standalone ~3mtpa processing facility at Davyhurst."

The post Why Brazilian Rare Earths, Lynas, Macquarie Technology, and Ora Banda shares are pushing higher today appeared first on The Motley Fool Australia.

What did Macquarie Technology Group report?

• Secured $200 million hybrid investment from National Reconstruction Fund Corporation (NRFC)
• Funds to be issued in two series of $100 million each, before June 2026 and March 2027
• Hybrid Securities are perpetual, subordinated, unsecured, and callable
• Distributions fixed at 6.00% p.a. (effective ~8.57%) until first call date, then floating rate
• Funds targeted to expand sovereign digital infrastructure and cyber security services

What else do investors need to know?

Macquarie Technology Group will use the proceeds to accelerate the rollout of secure cloud and cyber security solutions, with a focus on servicing Australian government agencies, defence, and businesses handling critical infrastructure.

The NRFC's strategic, non-dilutive investment adds flexibility to Macquarie's balance sheet without issuing new shares. This partnership with a major government investor underscores confidence in Macquarie's key role in Australia's digital and national security infrastructure.

What did Macquarie Technology Group management say?

Chief Executive David Tudehope said:

We are delighted to partner with NRFC and secure this investment, which provides long-term capital to support our growth initiatives while providing additional financial flexibility and diversification of our funding sources.

This new source of capital enables us to expand our role as a provider of secure digital infrastructure and cyber security, delivering significant benefit to the Australian economy over time.

What's next for Macquarie Technology Group?

Macquarie plans to draw down the first $100 million by June 2026 and the second by March 2027, using these funds to scale up its Cloud Services and Government (CS&G) business. The extra capital is expected to boost product innovation in sovereign cloud and AI, catering to sensitive sectors like defence and critical infrastructure.

The Group's management highlighted that the capital structure remains robust, with no new equity dilution. Macquarie aims to further strengthen its leadership in secure, sovereign digital infrastructure and cyber security solutions across Australia.

Macquarie Technology Group share price snapshot

Over the past 12 months, Macquarie Technology Group shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Macquarie Technology Group secures $200m NRFC investment for digital infrastructure appeared first on The Motley Fool Australia.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) rose 1.84% to finish at 9,081.4 points on Friday.

As earnings season continued, strong results and higher oil prices pushed the ASX 200 to a new record of 9,118.3 points on Thursday.

That beat the previous record of 9,115.2 points set on 21 October.

Eight of the 11 market sectors finished the week in the green.

Let's recap.

ASX tech shares led the market last week

Last week was a welcome bright spot for ASX 200 tech shares, which are in the midst of a prolonged rout.

And boy, is it ugly.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) has fallen by more than 40% over the past six months.

We took a deep dive into the issues plaguing the sector last week.

In a nutshell, there's fear in the market over artificial intelligence (AI).

Investors are worried about high tech stock valuations, extraordinary AI capex, and whether AI could white-ant SaaS companies.

Perhaps a rebound is now underway, given last week's 6.55% increase for the tech sector.

Let's take a look at what happened in the sector last week.

WiseTech Global Ltd (ASX: WTC) shares lifted 10.51% to finish at $47.10 ahead of the company's earnings release on Wednesday.

The Xero Ltd (ASX: XRO) share price rose 5.51% to $77.54.

NextDC Limited (ASX: NXT) shares slipped 0.71% to $13.92.

TechnologyOne Ltd (ASX: TNE) shares soared 22.71% to $24.74, with investors reassured by upgraded FY26 guidance at last week's AGM.

Shares in electronics solutions provider Codan Ltd (ASX: CDA) lifted 1.37% to $34.69.

Life360 Inc (ASX: 360) shares increased 8.27% to $23.84.

The Megaport Ltd (ASX: MP1) share price tumbled 9.98% after the company reported an underlying net loss of $3.3 million for 1H FY26.

The Dicker Data Ltd (ASX: DDR) share price rose 7.32% to $10.41 ahead of its earning report on Thursday.

Macquarie Technology Group Ltd (ASX: MAQ) shares rose 5.4% to $67.19.

The Data#3 Ltd (ASX: DTL) share price lifted 4.24% to $9.10 ahead of the IT solutions provider's earnings release on Monday.

Objective Corporation Ltd (ASX: OCL) shares increased 6.4% to $14.

The Iress Ltd (ASX: IRE) share price edged 0.43% higher to $7.05 ahead of the financial technology company's report on Wednesday.

The Catapult Sports Ltd (ASX: CAT) share price rose 5.72% to $3.51.

Hansen Technologies Ltd (ASX: HSN) soared 16.29% to $5.14 after the company reported a 389.1% lift in net profit for 1H FY26.

Hansen is one of a large group of ASX 200 shares going ex-dividend next week. The tech stock will pay a dividend of 5 cents per share.

Shares in hotel bookings management platform provider, Siteminder Ltd (ASX: SDR) rose 4.62% to $3.62.

The Weebit Nano Ltd (ASX: WBT) share price fell 0.2% to $4.90.

Shares in wealth management software company Bravura Solutions Ltd (ASX: BVS) fell 7.45% to $1.93.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 tech shares lead market sectors with a 7% bounce back appeared first on The Motley Fool Australia.

In a research note to clients this week, RBC said the Australian market had been caught up in the "AI euphoria risk trade, with the market seeing materially lower barriers to entry and disintermediation risks potentially impacting sales/margins over the medium long/term''

This had led to sharp down-ratings for some technology stocks over recent months, with some share prices halving over the past half year, RBC said.

They added:

We believe certain names have higher moats and are better protected, however marrying up an attractive entry point is difficult in the midst of negative macro tech sentiment and the tide running out fast.

The companies singled out as having a decent moat were Pro Medicus Ltd (ASX: PME), Technology One Ltd (ASX: TNE), REA Group Ltd (ASX: REA), and Wisetech Ltd (ASX: WTC).

On the risk front, some companies were facing increasing earnings risks from the higher Australian dollar, including Pro Medicus, Hansen Technologies Ltd (ASX: HSN), and Megaport Ltd (ASX: MP1).

Good value stocks abound

While RBC has flagged plenty of risks in the sector, they also have outperform ratings and solid price targets on eight stocks.

For Technology One, RBC says their UK growth narrative is continuing, and the company "has demonstrated the best AI capabilities we've seen to date amongst our coverage with its new PLUS Ai platform being released in market this year with monetisation into 2027''.

RBC has a price target of $32 on Technology One shares compared with $25.62 currently.

For Wisetech, they have a price target of $100 against $59.01 currently, saying the take-up of the company's new commercial model "should see positive tailwinds in 2H26".

RBC has a price target of $155 for Xero Ltd (ASX: XRO) shares, compared with $94.37 currently, saying the demand environment was "healthy" and that there could be a catalyst for a rerating in February, when the company demonstrates its Melio product offering.

On the data centre front, RBC says NextDC Ltd (ASX: NXT) is benefiting from the AI and cloud computing boom, adding that "hyperscalers continue to materially increase their capex on data centre-related investments, evidence of a healthy demand environment''.

RBC has a price target of $20 on NextDC shares compared with $13.21 currently.

And on much the same theme relating to data centre demand, it has a price target of $90 on Macquarie Technology Group Ltd (ASX: MAQ) compared with $69.60 currently.

For Hansen Technologies, RBC has a price target of $6.25, while on the speculative side, they have a price target for Megaport of $18 compared with $11.81 currently.

And last but not least, for Fineos Corporation Holdings Plc (ASX: FCL), RBC has a price target of $3 versus $2.30 currently.

The post Eight stocks to buy in the bruised tech sector according to RBC appeared first on The Motley Fool Australia.

Here are 3 ASX AI stocks which are tipped to soar even higher in 2026.

Megaport Ltd (ASX: MP1) 

Megaport provides network-as-a-service (NaaS) connectivity that helps power AI applications that need fast data speeds. It lets businesses quickly and securely link up to cloud services, data centres and other digital infrastructure, without the need for physical hardware.

It's this strong link to cloud computing which puts Megaport in a good spot for long-term growth. As more companies lean into AI and keep scaling up their digital operations, demand for flexible, high-speed connectivity should only keep growing.

Megaport expanded its network presence in the first half of FY25 and launched new products to boost its offering. More recently, Megaport completed an institutional placement in mid-November. This was just a day after it revealed that it was raising $220 million to fund the acquisition of Latitude.sh for US$150 million in cash and scrip. The acquisition boosts Megaport's existing offerings further and gives it a direct entry into a large, fast-growing end market.

At the ASX close on Monday, Megaport's share price closed 2.46% higher at $12.90. Over the past year the shares have rocketed 73.85% higher. And analysts are bullish that the shares will keep climbing in 2026 too. TradingView data shows 10 out of 14 analysts have a buy or strong buy rating on the shares with a maximum target price of $21.70 for 2026. That implies an upside of 68.22% next year. 

NextDC Ltd (ASX: NXT)

Another ASX AI stock set to climb higher in 2026 is NextDC. It's Australia's leading independent data centre operator and it provides secure facilities where businesses can store their IT systems to keep their networks running smoothly and reliably.

At the time of writing, its share price has tumbled nearly 30% since peaking at an annual high of $17.99 in mid-September. The company suffered a huge protest vote against its remuneration report at its annual general meeting (AGM) in November. It has also been caught up in the tech-led market pullback over the past couple of months.

At the close of the ASX on Monday its shares were 6.62% higher for the day at $12.73. Over the past year they've fallen 17.01%.

But it looks like NextDC has great prospects for 2026, and analysts are bullish that the company can pull off significant growth throughout the year. Nextdc has an aggressive expansion plan to meet an ever-increasing demand for data storage and cloud services. 

Data shows analysts consensus that the shares are a buy, with a target price as high as $28.89 per share. At the time of writing that implies a huge 126.94% upside in 2026.

Macquarie Technology Group Ltd (ASX: MAQ) 

Macquarie Technology is one of Australia's leading data centres, which provides infrastructure for cloud computing, cybersecurity, and telecommunications. The business has posted 20 consecutive half-years of operating income growth. 

It is clearly fast-growing, although its share price has fluctuated wildly over the past 12 months anywhere between $91.39 and $52.66.

At Monday's close of the ASX, the share price was 3.17% higher at $68 a piece. Over the past year, its shares have dropped 20.37% but the company is optimistic that it'll have more growth ahead and analysts seem to agree. 

Forecasts for Macquarie Technology have a maximum estimate of $112 throughout 2026. That implies a potential upside of as much as 64.71% at the time of writing.

The post 3 ASX artificial intelligence stocks with up to 130% upside in 2026 appeared first on The Motley Fool Australia.

The top broker has given the following shares outperform ratings and optimistic 12-month price targets despite today's volatility.

Let's check them out.

ASX 200 shares set to outperform in 2026: broker

Here is a selection of Macquarie's top ASX 200 share tips across the 11 market sectors for 2026.

Materials

Macquarie likes ASX 200 gold share Bellevue Gold Ltd (ASX: BGL), which is trading at $1.29 on Thursday, up 3%.

The broker has a price target of $1.70 on the stock, implying a potential 32% upside.

Macquarie is also backing James Hardie Industries plc (ASX: JHX) shares for a strong recovery after a 40% dive in 2025.

The James Hardie share price is currently $29.92.

The broker has a price target of $40.60 on the building materials supplier, implying a potential 36% gain over 12 months.

Technology

The Macquarie Technology Group Ltd (ASX: MAQ) share price is down 22% in the year to date to $68.19 on Thursday.

The broker has high hopes for this ASX 200 tech share with a 12-month price target of $97.30, suggesting a 43% rise.

Macquarie also likes NextDC Ltd (ASX: NXT) shares with a price target of $20.90.

The NextDC share price is currently $13.87, suggesting a potential 51% upside over the next 12 months.

As we reported this week, ASX 200 tech shares are officially in a bear market amid fears of an AI bubble and high valuations.

Financials

The top broker has a $2.50 price target on GQG Partners Inc (ASX: GQG) shares, which are trading at $1.80 today, up 7.5%.

This implies a potential capital gain of 39%.

Macquarie also likes Pinnacle Investment Management Ltd (ASX: PNI) shares with a price target of $26.55.

The ASX 200 financial share is $17.63 on Thursday, up 3.8%. The broker's target implies a meaty 51% potential upside.

Industrials

Macquarie has a price target of $8.10 on navy shipbuilder Austal Ltd (ASX: ASB).

Increased global spending on defence is a major tailwind for this ASX 200 industrial share, which is $6.62 apiece today.

This implies a potential 22% gain from here.

The broker is also optimistic on IPH Ltd (ASX: IPH) shares, which are trading for $3.46 on Thursday, down 0.7%.

Macquarie is tipping a 60% upside with its $5.55 price target.

Utilities

Macquarie is backing AGL Energy Limited (ASX: AGL) shares for 2026 with a price guide of $11.

The AGL share price is $9, up 0.2% on Thursday, so the broker is expecting a 22% gain from here.

Consumer discretionary

Macquarie is positive on Temple & Webster Group Ltd (ASX: TPW) shares with a price target of $31.30.

Temple & Webster shares were smashed this week after the online furniture retailer reported an 18% lift in sales for 1H FY26 so far.

The Temple & Webster share price is $14.20, up 2.7% today, with a potential 120% capital gain on the cards if Macquarie is right.

The broker also likes ARB Corporation Ltd (ASX: ARB) shares with a price target of $44.90 compared to the current share price of $33.84.

Consumer Staples

In this sector, the broker likes ASX 200 agricultural share Bega Cheese Ltd (ASX: BGA).

The Bega Cheese share price is $5.98, down 0.8% on Thursday.

Macquarie has a price target of $6.80 on the stock, suggesting a potential near-14% upside.

The broker also foresees Coles Group Ltd (ASX: COL) shares surpassing their record high in 2026.

The Coles share price is $22.44, up 0.4% on Thursday and well down on the record $24.28 reached in September.

Macquarie has a price target of $26.10 on the second biggest ASX 200 consumer staples share on the market.

This implies a potential 16% capital gain from here and a new all-time high for Coles shares.

Healthcare

Despite its share price plunge this year, Macquarie is backing CSL Ltd (ASX: CSL) for a comeback in 2026.

The CSL share price is $185.61 on Thursday, up 1.5%.

Macquarie's 12-month price target is $275.20, suggesting a potential 48% gain from here.

The broker also likes sleep apnoea device maker, Resmed CDI (ASX: RMD) shares.

Macquarie has a price target of $49.20 on this ASX 200 healthcare share, which is trading 0.2% lower today at $39.24.

Communications

Macquarie likes Seek Ltd (ASX: SEK) shares with a price target of $32.50, implying a potential 32% increase over the next 12 months.

The Seek share price is $24.56, up 1% today.

Another ASX 200 communications share on the broker's radar for 2026 is carsales.com.au owner Car Group Limited (ASX: CAR).

The CAR share price is $34.73 on Thursday, up 1.5%.

The broker foresees 13% in capital growth over the next 12 months with a price target of $39.

Energy

Macquarie has a share price target of $11.10 on the market's largest ASX 200 uranium share, Paladin Energy Ltd (ASX: PDN).

The Paladin Energy share price is $7.82, down 2%, so the broker's tip suggests a potential 42% upside from here.

The broker also expects a recovery in the Santos Ltd (ASX: STO) share price after a difficult year and a withdrawn takeover bid.

The Santos share price is $6.44, down 1.9%. Macquarie's price target is $8.15, implying a potential 26% increase ahead.

Real estate & REITs

Macquarie has a $6.74 price target on ASX 200 real estate share Lendlease Group (ASX: LLC).

Lendlease shares are $5.18, down 0.6% today, so the broker's tip implies a potential 30% upside from here.

Macquarie also likes sector leader Goodman Group (ASX: GMG) with a price target of $34.73.

The Goodman Group share price is $29.66, up 0.9% on Thursday.

The post Macquarie reveals ASX 200 share tips in each market sector for 2026 appeared first on The Motley Fool Australia.

At the time of writing, the ASX tech stock is up 4% to $66.33.

This appears to have been driven by the release of a bullish broker note out of Macquarie Group Ltd (ASX: MQG) this morning.

What is the broker saying about this ASX tech stock?

Macquarie is feeling very bullish about the telecommunication, cloud computing, cybersecurity and data centre services provider to corporate and government customers within Australia.

This is especially the case given its positive outlook and attractive valuation compared to peers. In respect to its outlook, the broker commented:

MAQ is well positioned to benefit from accelerating demand in Australia's data centre market, which Alvarez & Marsal forecasts to witness a 16% CAGR from 2024– 27e. It expects the hyperscale and AI segments to expand even faster, at ~20% and ~90% CAGRs, offering significant opportunities for established operators like MAQ, which already serves 2 of 3 global hyperscalers and 42% of government agencies.

This will be supported by the ASX tech stock's data centre capacity plans. It adds:

Data centre capacity set to expand ~10x. MAQ's strategy is to grow current installed capacity of 21MW to >215MW over the next decade driven by the 47MW IC3 SW and the recent land lot option to provide a further >150MW. Our data centre earnings accelerate from FY28e, with Phase 1 of IC3 SW to be completed Sep-26.

Attractive valuation

As mentioned above, Macquarie thinks that the technology company's shares are attractively priced at current levels and sees significant upside potential for investors.

According to the note, the broker has initiated coverage on the stock with an outperform rating and $97.30 price target. Based on its current share price, this implies potential upside of almost 50% for investors over the next 12 months.

Commenting on its recommendation, Macquarie said:

Initiate with Outperform. MAQ is trading on ~14x NTM EV/EBITDA, well below peers at 17-34x. As its data centre developments advance, we see scope for a material valuation re-rate; we forecast Data Centres will increase from ~35% to ~60% of group earnings over FY26-FY30e.

Valuation: $97.30 TP based on a blended DCF & EV/EBITDA val. Our $71.30 val for MAQ's existing businesses is underpinned by the current share price, with IC3 SW & future data centres providing material upside risk. Key catalysts. IC3 SW build &contract updates, land settlement for new campus, funding updates, industry news on large AI/hyperscale demand.

The post Macquarie initiates coverage on this ASX tech stock; tipping 50% upside appeared first on The Motley Fool Australia.

The broker has released a report on the data centre sector. It says that while 2025 was a big year for the local market, the appetite for new data centres remains strong.

Overall 2025 was a massive year for the local data centre market, with record leasing in Melbourne in particular. This is despite one of the major market customers (Microsoft) being far less active than they have been in the last two years. There is large anticipation of them returning to the leasing market in 2025-26, which likely sets 2026 as another record year building on 2025, which built on 2024.

E&P Capital said it had been bullish on the local data centre market for more than a decade, "and our conviction in this view is as strong as ever".

Stocks to surge higher

Many of the local data centre companies, such as AirTrunk, are unlisted; however, among the ASX-listed companies covered in the report, E&P Capital is predicting solid share price gains.

Its favoured pick from a valuation perspective is Macquarie Technology Group Ltd (ASX: MAQ), which E&P analysts have assigned a valuation of $112 against the current share price of $64.48.

If that level were attained, it would represent a gain of 73.7%.

The broker is also bullish on NextDC Ltd (ASX: NXT) shares, which are trading around the same levels they were a year ago, after being sold down to as low as $9.40 during the past 12 months.

E&P has a price target of $28.66 on NextDC shares, 64.1% higher than the current price of $17.47.

It is also positive on the $1.5 billion Digico Infrastructure REIT (ASX: DGT), which it has valued at $3.61, 31.7% higher than the current price of $2.74.

Least favoured was Infratil Ltd (ASX: IFT), which E&P analysts have valued at $12.19, 9.9% higher than the current share price of $11.09.

We would regard the conclusions of this report as generally bullish for all companies, with continually large growth rates and emerging deeper supply constraints.

E&P analysts say the Melbourne data centre market is expected to remain particularly hot, and will "take off in a way that will not correlate to the local population, with AWS having set up a machine learning hub in the city in 2025 that has led to an order of magnitude change in their activities".

The post Another record year for data centre companies could deliver more than 70% share price gains this broker says appeared first on The Motley Fool Australia.