At the very top end, fortunes can rise or fall by tens of billions of dollars in the space of a month as share prices and company valuations move around.

So, who sits at the top of the pile right now?

According to Forbes, these are the 10 richest people in the world as of 1 September 2026.

1. Elon Musk – US$892 billion

Elon Musk remains comfortably on top with an estimated fortune of US$892 billion.

His wealth is largely tied to SpaceX (NASDAQ: SPCX) and Tesla (NASDAQ: TSLA). Forbes estimates that his fortune jumped by US$202 billion during August as both companies increased in value. To put this wealth into context, Australia's largest bank, Commonwealth Bank of Australia (ASX: CBA), has a market capitalisation of around A$270 billion.

2. Larry Page – US$277 billion

Google co-founder Larry Page is second with US$277 billion.

Much of his wealth comes from his holding in Google parent Alphabet Inc (NASDAQ: GOOGL), where he remains a board member and controlling shareholder.

3. Jeff Bezos – US$268 billion

Amazon.com (NASDAQ: AMZN) founder Jeff Bezos sits in third place with US$268 billion.

Bezos remains Amazon's executive chairman and owns around 8% of the ecommerce and cloud computing giant.

4. Sergey Brin – US$256 billion

Fellow Google co-founder Sergey Brin is worth an estimated US$256 billion.

Like Page, his fortune is closely linked to Alphabet. Forbes notes that Brin has also become more involved with the company's artificial intelligence efforts.

5. Michael Dell – US$241 billion

Michael Dell has built a US$241 billion fortune.

He founded Dell Technologies (NYSE: DELL) as a teenager and remains its chairman and CEO.

6. Mark Zuckerberg – US$197 billion

Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg is sixth with US$197 billion.

He still owns approximately 13% of the company behind Facebook, Instagram, and WhatsApp.

7. Larry Ellison – US$193 billion

Oracle (NYSE: ORCL) co-founder Larry Ellison is worth US$193 billion according to Forbes.

His fortune increased by US$25 billion during August, helping him move back up the rankings.

8. Jensen Huang – US$191 billion

Nvidia (NASDAQ: NVDA) co-founder and CEO Jensen Huang has an estimated US$191 billion fortune.

His rise has been driven by Nvidia's extraordinary growth as its chips have become central to the artificial intelligence boom.

9. Steve Ballmer – US$155 billion

Former Microsoft (NASDAQ: MSFT) CEO Steve Ballmer is back in the top 10 with US$155 billion.

Forbes notes that Ballmer has retained a significant Microsoft shareholding since leaving the company.

10. Amancio Ortega – US$148 billion

Finally, Zara co-founder Amancio Ortega has an estimated fortune of US$148 billion.

He owns around 60% of Zara parent Inditex (BME: ITX), with his wealth also reportedly spread across a substantial global property portfolio.

The post These are the 10 richest people in the world in September appeared first on The Motley Fool Australia.

After all, Warren Buffett once suggested that investors should be greedy when others are fearful.

Of course, a 1% decline over one trading day, and a 3% drop over a month, is not exactly a huge fall. But, it's not that often that the IVV ETF falls by 1% or more on a single day.

I'll run through some of my thoughts on the appeal of the IVV ETF.

Don't completely ignore the AI question

There is extensive market commentary about AI and data centres. I normally don't write about these aspects when considering the IVV ETF and there's so much coverage of those elements already. You'd need a crystal ball to truly know how those two factors are going to play out.

The most optimistic and pessimistic viewpoints about AI and data centres are probably too strong.

But, there are some important questions that I can't see clear answers to yet.

How would economies realistically operate if AI is successful as hoped by its strongest advocates?

How will these AI businesses generate enough revenue/profit to justify their valuations?

Are businesses depreciating their capital expenditure at the right rate? Or will rapid advancement mean there will be big impairments in a few years? Depreciating AI spending over three years or six years can make a big difference to a company's profit.

There are vast sums being invested in AI-related businesses, with hefty valuations attached to US tech companies and bullish assumptions about the future, so investors shouldn't totally ignore AI considerations when looking at the IVV ETF.

It is possible to overpay for an asset, even an exchange-traded fund (ETF). Overpaying can lead to low or negative long-term returns for that particular investment.

Why the IVV ETF could be a buy

The positives of the iShares S&P 500 ETF still exist.

It still has very low annual management fees of 0.04%.

The fund still gives access to 500 great businesses, with those holdings giving an evolving exposure to how the US (and global) economy is changing. Many of the world's strongest businesses are listed in the US, with incredibly powerful brands, operating leverage on a global scale, impressive balance sheets and the ability to invest heavily for future earnings growth.

We can buy the IVV ETF for a cheaper price than it was a few weeks ago.

Plenty of investors may use it as a regular dollar cost average (DCA) investment strategy, through the highs and lows. I wouldn't advise against that. But I think it could be wise to ensure diversification by regularly investing in other markets too, such as the ASX or Europe.

Reasons to look elsewhere

There's no doubt the IVV ETF has been a great investment and may continue to do so.

But the portfolio is becoming increasingly reliant on a few large tech businesses, with a rapidly increasing focus on AI. It's becoming less diversified, in my view.

Will all the spending on AI be worthwhile? Meta Platforms Inc's (NASDAQ: META) spending on its Metaverse has seemingly wasted many billions of dollars. I'm feeling cautious about the US share market.

ETF investing makes investing very easy for most people, but it shouldn't mean we invest in something no matter what if it's no longer appealing, in my view. Investors need to decide if this is still a good investment.

Long-term holders of the IVV ETF have done very well, but for investors seeking returns, it may be wise to diversify their holdings across different assets.

The post Is this the right time to invest in the iShares S&P 500 ETF (IVV)? appeared first on The Motley Fool Australia.

However, as so many of us are invested in both markets, it's relevant to compare their performance over a given period.

So, let's canvas what happened in the Australian financial year (FY26) from 1 July 2025 to 30 June 2026.

Let's compare…

S&P/ASX 200 Index (ASX: XJO) shares increased 2.77% and delivered total returns, including dividends, of 7% in FY26. 

The S&P/ASX All Ords Index (ASX: XAO) rose 2.43% and provided total returns of 5.69%, according to S&P Global data.

By comparison, the S&P 500 Index (SP: INX) rose by 20.86% and delivered total returns of 22.32%.

The Nasdaq Composite Index (NASDAQ: .IXIC) ascended 28.69% and gave a total return of 30.55%.

The Dow Jones Industrial Average (DJX: .DJI) rose 18.65% and delivered a total return of 20.65%.

Why did US stocks outperform ASX 200 shares?

Drew Meredith from Wattle Partners says it comes down to America's leading position in the artificial intelligence (AI) revolution.

In an article in The Golden Times, Meredith explained:

The United States market is being driven by a small number of companies with outsized earnings power, almost all tied to artificial intelligence infrastructure.

Nvidia, Microsoft, Alphabet, Meta, and Amazon have delivered earnings growth that justifies, at least in part, the premium valuations US indices now carry.

Meanwhile, ASX 200 shares struggled to grow in FY26 amid resurgent inflation, three interest rate hikes in February, March, and May (reversing the impact of one cut in August), the energy crisis, and weak consumer confidence.

On top of that, fears of an AI bubble and a SaaSpocalypse weighed on our tech sector, which dove 37% in FY26.

ASX 200 healthcare shares also tumbled 37% amid many industry challenges, including a weaker US currency impacting global players.

Meredith says the Federal Budget's CGT reform package, announced in May, has also weighed on financial shares and property, too.

Can the US markets keep delivering?

Shaun Manuell, Chief Investment Officer (CIO) at AustralianSuper, isn't ready to call the top of the US stock market yet.

In the Weekend Australian, Manuell described US equities being in the "rational exuberance phase".

He said:

The retail investor is back in the US, and I think there's a lot of weight behind that.

When the US equity market gets going it's a very, very powerful engine. So, I wouldn't be calling the top of that just yet.

As for ASX 200 shares, Manuell is not optimistic for FY27.

It'll be another challenging year; you're going to have to be really careful in the sectors.

We know consumer sentiment's down, house prices are down, and that leads through to the wealth effect as well.

Manuell said AusSuper is "slightly overweight" US stocks, and underweight ASX shares compared to global stocks.

He likes ASX 200 mining shares but is underweight bank stocks.

Should you buy US stocks?

Meredith warns against 'recency bias' and any temptation investors may feel to switch out of ASX 200 shares in order to buy US stocks.

Meredith explains:

When one market dramatically outperforms another for two or three years, investors feel they were wrong to be diversified. That feeling is not evidence. It is recency bias.

The periods of sharpest US outperformance relative to global peers have consistently been followed by periods of mean reversion.

This happened after the dot-com peak in 2000. It happened in the early years after the GFC when US banks were recovering and Australian miners were printing money.

It does not happen on a schedule you can predict, which is precisely why systematic diversification matters more than tactical shifts.

Manuell says his team is eyeing off a recent pullback in the Magnificent Seven US stocks as a potential buying opportunity.

He also said he is more comfortable investing in the "picks and shovels" of the AI revolution, commenting:

Everyone's been playing the picks and shovels because they can see there's money to be made but this is just making the infrastructure.

Once we've got the infrastructure, what's going to happen? Nobody knows…

3-year snapshot of ASX 200 shares vs. US stocks

The post ASX 200 shares vs. US stocks in FY26 appeared first on The Motley Fool Australia.

The good news is that Aussie investors do not need to pick individual winners.

That's because there are exchange traded funds (ETFs) out there that allow you to gain exposure to this side of the sector with a single click of the button.

With that in mind, here are three ASX ETFs that could be worth looking deeper into:

Betashares Global Cybersecurity ETF (ASX: HACK)

Companies can delay some technology projects when budgets tighten. But protecting data, networks, customers, and critical systems is becoming a permanent business cost.

The Betashares Global Cybersecurity ETF invests in a portfolio of global cybersecurity companies. These businesses provide services across areas such as endpoint protection, identity security, cloud security, network defence, and threat detection.

As more business activity moves online, the number of possible entry points for cyberattacks keeps growing. Remote work, cloud platforms, digital payments, artificial intelligence tools, and connected devices all create more complexity.

Cybersecurity companies are selling into that complexity and therefore appear well-placed for growth over the next decade.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

This fund gives investors exposure to technology that is moving out of the screen and into the real world.

The Betashares Global Robotics and Artificial Intelligence ETF is focused on companies involved in robotics, automation, artificial intelligence, unmanned vehicles, drones, and related technologies.

That gives it a very different flavour from a standard tech ETF. It is tied to the idea that more industries will use machines and intelligent systems to do work that is repetitive, dangerous, precise, or difficult to scale with labour alone.

That could include warehouses using more automation, factories improving productivity, hospitals adopting robotic tools, and logistics networks becoming smarter.

Artificial intelligence could also make this theme more interesting over time. If machines become better at sensing, learning, and adapting, robotics may become valuable in more settings.

Global X FANG+ ETF (ASX: FANG)

Finally, the Global X FANG+ ETF is a more concentrated way to own some of the world's most influential technology and growth companies.

It provides exposure to a small basket of major global names that sit at the centre of digital life, artificial intelligence, cloud computing, online advertising, electric vehicles, social media, streaming, and ecommerce.

This includes NVIDIA (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Amazon (NASDAQ: AMZN).

It is important to note that the fund is not designed to be broad or defensive. It is built around companies that already have enormous platforms and the financial strength to keep investing in future growth.

As a result, it gives investors a simple way to own a slice of global companies that are still shaping how people shop, communicate, work, search, stream, and use artificial intelligence.

The post 3 exciting ASX ETFs for exposure to the future of technology appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 10.5% to $3.03. This is despite there being no news out of the counter-drone technology company on Monday. However, it is worth noting that there is optimism that the US and Iran will soon sign a peace deal. This could mean that investors are fearing that demand for DroneShield's products will soften.

Lendlease Group (ASX: LLC)

The Lendlease share price is down over 3% to $2.63. Investors have been selling the property developer's shares following the announcement of a divestment. The company has agreed a $250 million sale agreement for its MSG North development rights. However, this deal is expected to result in a $175 million post‑tax loss. Management notes that the transaction is part of Lendlease's ongoing capital recycling program, which is intended to release value tied up in long-dated and complex projects. Lendlease's CEO, Tony Lombardo, said: "The sale of the commercially challenged MSG North project is consistent with our strategy to reduce long-dated international development capital and simplify the Group."

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is down 30% to 16.5 cents. This has been driven by news that tech giant Meta Platforms (NASDAQ: META) is terminating its agreement for outsourced development contracts on the Horizon Worlds social platform. Management anticipates the revenue impact from the loss of this work will be approximately A$4 million in FY 2027. It said: "This is a counterparty decision and is not a reflection of the work PlaySide employees have delivered on an engagement that has consistently grown in value and scope since initial work began with Facebook in 2021. However, the loss of this work is a setback to the Company's External Projects pipeline, and rebuilding that pipeline is (and has been) the immediate priority. Over the past six months we have built out the Company's Business Development function from one person to four, significantly expanding the Company's reach with international clients, and that team is focused on the work ahead."

ResMed Inc (ASX: RMD)

The ResMed share price is down 7% to $26.63. This follows a sharp decline by the sleep treatment company's NYSE-listed shares on Friday night. There does not appear to have been any obvious company-specific catalyst for the weakness on Wall Street.

The post Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today appeared first on The Motley Fool Australia.

Even if you have never invested in the likes of Microsoft Corporation (NASDAQ: MSFT) or Amazon.com Inc (NASDAQ: AMZN), chances are you have used their products or services, probably recently. Ditto with Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms Inc (NASDAQ: META) and Apple Inc (NASDAQ: AAPL). Tesla Inc (NASDAQ: TSLA) and NVIDIA Corporation (NASDAQ: NVDA) are a little more niche. Even so, these last two of the seven are still household names, and possibly household presences.

Despite the ubiquity of the Magnificent 7 in Australian daily life, far fewer Australians would own shares of them directly. Saying that, international stock market investing has never been more popular in Australia. If an investor does own international stocks, there is a high chance that at least one of them will be a Mag 7 stock.

Personally, I directly own shares in five of the Magnificent 7. In fact, I have owned all seven of these ocmpaneis at various points (although never simultaneously).

Until quite recently, I thought of these positions as a small, although valuable portion of my overall portfolio. However, after a recent audit, I have discovered that I am far more invested in these seven stocks than I previously supposed.

The dominance of the Magnificent 7 stocks

It starts with an exchange-traded fund (ETF) that I own. As I have previously discussed, I recently sold my holdings in the BetaShares Nasdaq 100 ETF (AS:X NDQ) to buy a similar, but far cheaper ETF in the Schwab U.S. Large-Cap Growth ETF (NYSE: SCHG).

All seven of the Magnificent 7 are core holdings of this fund. As they are in almost every major US-based ETF listed on the ASX. That includes the iShares S&P 500 ETF (ASX: IVV) and the Vanguard MSCI Index International Shares ETF (ASX: VGS). Not to mention NDQ. Magnificent 7 stocks also sometimes pop up in the Schwab U.S. Dividend Equity ETF (NYSE: SCHD) and the iShares Core Dividend Growth ETF (NYSE: DGRO), which are also in my portfolio.

So that's three.

Next, one of my largest investments is the listed investment company (LIC) MFF Capital Investments Ltd (ASX: MFF). This Buffett-esque LIC is a long-term holding of mine, and a favourite investment. As it happens, Alphabet, Amazon, Microsoft and Meta Platforms are all large positions in MFF's portfolio. That's four.

These components routinely pop up in yet another of my favourite, long-term holdings. That would be the VanEck Morningstar Wide Moat ETF (ASX: MOAT). That's five major personal investments that are exposed to at least one Mag 7 stock. Outside my direct ownership of five of the Magnificent 7 stocks.

Don't forget about your superannuation

The cherry on the cake comes in the form of my superannuation fund. Like most Australians, my super is partially invested in US stocks. And the Magnificent 7 are at the top of that list, too.

As it turns out, these seven US tech titans are far heavier in my portfolio and my overall wealth than I had previously thought.

I do view most of the Magnificent 7 as companies of the highest calibre. You don't get to where they are now without being truly exceptional. As such, this high exposure doesn't bother me.

However, there's a big chance that other ASX investors out there are in the same boat. Thus, it may be worth checking out your own investments and seeing just how deep the Mag 7 goes. My exposure tolerance to these seven stocks may be higher than yours.

The post ASX investors: Are you overinvested in the Magnificent 7 without knowing it? appeared first on The Motley Fool Australia.

Of course, SpaceX is also famous for its CEO, the irreplaceable Elon Musk. Musk cuts a controversial figure. But no one can deny that his leadership of SpaceX is almost single-handedly responsible for the manic interest in its impending IPO.

According to Forbes, Musk is pursuing a dual-class stock structure for SpaceX, once it becomes a public company. Although these dual-class structures are not permitted on the ASX, they are an increasingly common choice for US stocks. Let's break down how it works.

In a nutshell, dual-class share structures create multiple versions of shares in a company's stock. Here on the ASX, we tend to follow a democratic 'one share, one vote' methodology. There is only one iteration of Telstra Group Ltd (ASX: TLS) shares, for example, and every share gives an investor one vote. That is not the case with many US stocks, though. Dual-class structures allow a company to create tiers of stock. Most of the time, these tiers represent the same ownership stake of a company, but alter its voting power.

SpaceX IPO: 10 votes for Musk, 1 for the public

They are often created to ensure that the founders of a company can retain control over it despite being able to sell down a significant portion of their shares. What's even more startling is that the class of shares that founders and insiders tend to own is often not even traded on the public market.

This is the model that SpaceX reportedly intends to follow. Here's how it set out its proposed stock structure in its recent prospectus:

Following the completion of this offering, we will have two classes of common stock issued and outstanding: Class A common stock  and Class B common stock. Each share of Class A common stock will entitle its holder to one vote per share. Each share of Class B  common stock will entitle its holder to 10 votes per share. Class A shareholders and Class B shareholders will vote together as a  single class on all matters to be voted on by shareholders, except Class B shareholders will be entitled to elect a majority of our board  of directors in addition to having certain other class votes…

If this structure is implemented, it will allow Musk to own about half of the economic share of SpaceX, but give him more than 80% of the company's voting power. That relegates other shareholders to mere spectators in the company's affairs.

The Zuckerberg method

If that sounds rather wild, it is not, by any means, unprecedented in America. Facebook-owner Meta Platforms Inc (NASDAQ: META) follows a similar structure. Meta's Class A shares are the META stock we see being quoted on the markets every day. However, its Class B shares are unlisted and are almost all owned by founder Mark Zuckerberg. It's how 'Zuck' can own less than 15% of Meta, but has a sole casting vote on any company decisions.

Some stocks take it even further. Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) has three types of shares: Class A, Class B, and Class C. Class A shares (GOOGL) have one vote per share. Class C (GOOG) shares represent the same ownership stake in Alphabet, but come with no voting rights. However, Class B shares represent the same ownership stake as Classes A and C, but grant their owner ten votes per share.

Class B shares are unlisted, though, and are mostly divided between Alphabet's two co-founders, Larry Page and Sergei Brin.

Companies tend to follow these dual-class structures when they want outside investors' money, but not their input. That's clearly the model Musk is pursuing at SpaceX. Given his profile and following, I'd be surprised if too many investors even cared.

The post SpaceX IPO: What are dual-class shares? appeared first on The Motley Fool Australia.

IVV ETF has been a popular choice among investors seeking exposure to the roaring US stock market over the past three years.

IVV is now the third largest ASX ETF out of more than 400 on the market, with more than $11.67 billion invested in it.

However, last month, IVV ETF recorded the highest investment outflows, indicating an exodus amid the Iran war.

Aussie investors took $461 million out of the exchange-traded fund (ETF) in March, based on ASX data analysed by Betashares.

However, investors have not given up on US shares, with $232 million flowing into IVV ETF's currency-hedged counterpart in March.

That's the iShares S&P 500 AUD Hedged ETF (ASX: IHVV), which is up 1.62% to $62.68 per unit today.

This indicates investors still want US exposure but are mindful of the weaker USD against the stronger AUD today.

Stronger Aussie dollar weakens IVV ETF returns

The Australian dollar has risen almost 20% from just over 60 US cents 12 months ago to a three-year high of 70.8 US cents today.

As James Gruber, Equity Market Strategist at CommSec, explains:

When the Australian dollar strengthens, your international ETF returns shrink, and if the Australian dollar weakens, your returns improve.

To put that into perspective: last year, the S&P 500 delivered total returns of 17.88%, but IVV ETF investors received just 10.75%.

The US dollar has weakened due to expectations of interest rate cuts, concerns over the impact of tariffs, and geopolitical uncertainty.

Meanwhile, the AUD has strengthened given Australia has entered a tightening rate cycle, with two rate hikes so far in 2026.

There is also strong demand for our commodities, which foreign buyers purchase with Australian dollars, amid a new mining boom.

Investors prefer IHVV over IVV today because hedged ETFs reduce the impact of currency movements on investments. 

Gruber explained:

For example, you may invest in an ETF that tracks the S&P 500 index. If it is unhedged and if the Australian dollar strengthens after you buy it, your returns in AUD may drop, even if the underlying investments do well in their home currency. 

Conversely, if the Australian dollar declines, the value of an unhedged ETF may rise in AUD terms, assuming the underlying asset holds or increases in value.

Gruber points out that currency-hedged ETFs typically cost more than unhedged ETFs.

Case in point: IHVV has management fee of 0.1% while IVV has a fee of 0.03%.

US shares vs. ASX 200 in 2026

The S&P 500 has substantially outperformed the S&P/ASX 200 Index (ASX: XJO) over the past three years.

But change is afoot this year.

So far in 2026, the S&P 500 has lifted 0.6% while ASX 200 shares have increased 2.9%.

Gruber points out that a key difference between the two benchmark indices is their exposure to technology companies.

That's significant because a global tech wreck is underway, as investors fret over the impact of artificial intelligence (AI).

Illustrating the difference, the IVV ETF is 34% tech stocks, while the ASX 200 has just a 3% exposure to technology.

Gruber said:

… the S&P 500 leans heavily on technology stocks. 

If you add the likes of Amazon and Tesla – classified as consumer discretionary stocks in the S&P – and Meta and Alphabet – included in the communications sector – to the technology sector, then tech accounts for more than 40% of the S&P 500 index. 

The post Why ASX investors dumped IVV ETF last month appeared first on The Motley Fool Australia.

Right now, that appears to be technology.

After a strong run, many tech names have pulled back amid concerns around interest rates and how artificial intelligence might reshape parts of the industry. That shift in sentiment has made the space feel more uncertain in the short term.

But it has also made it more interesting.

If I were looking for a single exchange-traded fund (ETF) to gain exposure to that uncertainty, while still backing the long-term opportunity, one fund that stands out to me is the Vanguard Global Technology Index ETF (ASX: VTEK).

A different way to think about tech exposure

When people think about investing in technology, the focus is often on a handful of well-known US stocks like Apple, Microsoft, Nvidia, Meta Platforms.

But the reality is more complex than that. Technology is not just about the platforms we use every day. It is also about the infrastructure that powers them, the chips that run them, and the systems that connect everything together.

That is where the VTEK ETF feels a little different.

It provides exposure to a broad group of around 300 global technology companies, spanning everything from software and cloud computing to semiconductors and advanced manufacturing. This includes ASML, Broadcom, Taiwan Semiconductor, and Shopify.

For me, that wider lens matters. It means you are not relying on one specific trend or trying to pick the next winner. Instead, you are backing the ecosystem as a whole.

The selloff could be doing the heavy lifting

One of the challenges with investing in technology is valuation. When sentiment is strong, it can be difficult to justify buying in at elevated prices.

That is why periods like this can be useful. The recent pullback has taken some of the heat out of the sector. It does not mean tech is suddenly cheap across the board, but it does mean expectations have come down.

I think that shift can be important. Lower expectations can make it easier for companies to surprise on the upside over time, particularly if underlying demand continues to grow.

Not just a US story

Another aspect I like about the VTEK ETF is that it is not solely focused on the United States. While US companies still play a major role, the fund also includes technology leaders from Europe and Asia.

That matters because innovation is not confined to one region.

Semiconductor manufacturing, for example, is heavily concentrated in parts of Asia, while specialised equipment and advanced engineering often come from Europe.

By spreading exposure across regions, I think this Vanguard ETF better reflects how the global technology landscape actually works.

It will not be a smooth ride

That said, this is not a low-volatility investment. Technology shares can move sharply, particularly when interest rates are rising or sentiment turns cautious.

This ETF is designed for growth, which means it is likely to experience ups and downs along the way.

For me, the key is being comfortable with that. If you are investing in this space, it needs to be with a long-term mindset.

Foolish takeaway

Calling any single Vanguard ETF the best is always a stretch. Different investors will have different goals, and what works for one person may not suit another.

But I do think the VTEK ETF makes a strong case right now. It offers broad exposure to the global technology sector, captures multiple layers of innovation, and comes at a time when sentiment has cooled.

For investors who believe in the long-term role of technology in the global economy, I think it is an ETF that is well worth a closer look.

The post Is this the best Vanguard ETF money can buy right now? appeared first on The Motley Fool Australia.

In Australia and globally, several powerful themes are driving investment. Electrification is reshaping energy systems, requiring significant spending on transmission infrastructure, renewable generation, and storage. At the same time, strong commodity prices are supporting mining companies, while large-scale infrastructure projects — including those linked to the Brisbane 2032 Olympics — are lifting activity domestically.

Against this backdrop, two ASX-listed companies, Wagners Holding Company Ltd (ASX: WGN) and NRW Holdings Ltd (ASX: NWH), have delivered standout share price performance over the past 12 months, rising over 157% and 94%, respectively.

But after such strong gains, are the fundamentals keeping pace?

Riding the infrastructure and construction wave

Wagners is a construction materials and infrastructure business with exposure to concrete, cement, composite materials, and aviation services. The company generates revenue by supplying essential inputs into infrastructure, civil construction, and mining projects — sectors that are currently benefiting from elevated investment levels.

Recent updates suggest Wagners has been experiencing strong trading momentum, supported by higher demand across its key divisions. In particular, infrastructure activity in Queensland and major project pipelines have been contributing to increased volumes and improved pricing outcomes.

The company has also continued to invest in its proprietary composite technologies, which offer lighter and more durable alternatives to traditional materials. This positions Wagners to benefit not only from near-term construction demand but also longer-term structural shifts in how infrastructure is built.

Looking ahead, the outlook appears supported by sustained infrastructure spending and population growth, particularly in regions such as southeast Queensland. If project activity continues to ramp up, Wagners could see further earnings growth, provided cost pressures remain controlled.

NRW Holdings: Leveraged to mining services growth

NRW Holdings operates as a mining services contractor, providing civil, mining, and drill and blast services to resource companies. Its revenue is largely tied to contract work across mine development, production, and infrastructure.

The company has benefited from strong commodity prices, which have left many miners with robust balance sheets and the ability to fund expansion projects and exploration programs. This has translated into a growing pipeline of work for contractors like NRW.

Recent results highlight solid profit growth and a healthy order book, with the company securing new contracts and maintaining strong utilisation across its fleet. Importantly, NRW's diversified exposure across commodities and clients helps mitigate reliance on any single project or resource.

The outlook remains favourable as mining investment continues, particularly in bulk commodities and critical minerals linked to the energy transition. As long as commodity markets remain supportive, demand for mining services is likely to stay elevated.

What could drive the next leg of growth?

Both ASX shares are benefiting from trends that appear durable rather than cyclical in nature.

Electrification requires significant capital investment in infrastructure. Mining companies are expanding to meet demand for key resources. And government-backed infrastructure pipelines remain strong.

However, after such significant share price appreciation, future returns may depend more heavily on continued earnings growth rather than multiple expansion.

For Wagners, this means maintaining margins while scaling production and delivering on project demand. For NRW, it comes down to converting its order book into sustained revenue and profit growth while managing costs.

If both companies can continue to grow revenue and earnings, maintain or expand margins, and avoid valuation compression, there is potential for further upside over time.

As always, the key will be execution.

The post 2 ASX shares booming on electrification and mining. Is there more upside ahead? appeared first on The Motley Fool Australia.

By investing internationally, you gain exposure to industries, companies, and growth drivers that simply don't exist locally.

The good news is that ASX exchange traded funds (ETFs) make that process easy, allowing investors to access world-class businesses without leaving the local market.

With that in mind, here are three ASX ETFs that offer different ways to invest in some of the best stocks in the world.

Vanguard MSCI International Shares ETF (ASX: VGS)

The first ASX ETF to consider is the Vanguard MSCI International Shares ETF.

Rather than trying to pick which country or sector will outperform, this fund takes a broad, all-weather approach. It invests across developed markets, giving exposure to thousands of companies spanning the US, Europe, and Asia.

Holdings include businesses such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nestle (SWX: NESN).

What makes the Vanguard MSCI International Shares ETF appealing is not any single stock, but the way it captures global economic progress as a whole. As industries rise and fall, and new leaders emerge, the index naturally evolves. This makes this fund a useful foundation for investors who want global exposure without having to constantly adjust their portfolio.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another way to invest in the world's best stocks is through a quality lens, which is exactly what the Betashares Global Quality Leaders ETF aims to do.

This fund focuses on businesses with strong profitability, robust balance sheets, and consistent earnings. Instead of spreading exposure as widely as possible, it narrows the field to stocks that have demonstrated an ability to perform through different market conditions.

Holdings include stocks such as Johnson & Johnson (NYSE: JNJ), Tokyo Electron, and Meta Platforms (NASDAQ: META). These are businesses that often benefit from pricing power, brand strength, or structural advantages.

This fund was recently recommended to clients by Betashares.

VanEck MSCI International Value ETF (ASX: VLUE)

A final ASX ETF to consider is the VanEck MSCI International Value ETF, which takes a different approach to global investing.

Rather than focusing on growth or quality, it looks for international companies trading at relatively attractive valuations based on fundamentals such as earnings, cash flow, and book value. This often leads to exposure in areas that are out of favour but not necessarily broken.

Holdings include companies such as Intel (NASDAQ: INTC), Verizon Communications (NYSE: VZ), and Toyota Motor Corporation (FRA: TOM). These businesses may not dominate headlines, but they play important roles in the global economy.

VanEck recently recommended this fund to clients.

The post Want to invest in the best stocks in the world? Try these ASX ETFs appeared first on The Motley Fool Australia.

For Australian investors, the move is highly relevant. Meta is a major holding in several ASX-listed ETFs, including the BetaShares NASDAQ 100 ETF (ASX: NDQ), VanEck Morningstar Wide Moat ETF (ASX: MOAT), ETFS FANG+ ETF (ASX: FANG), and the Global X Artificial Intelligence ETF (ASX: GXAI).

What did Meta report?

Overall, Meta's numbers were impressive. Fourth-quarter revenue jumped 24% year on year to US$59.9 billion, while earnings per share rose 11% as costs climbed sharply. Advertising demand remained strong, daily active users across Meta's platforms increased, and management guided to around 30% revenue growth in the March quarter was a clear acceleration from full-year growth.

But the result wasn't really about last quarter's earnings. It was about spending.

Meta now expects capital expenditure of US$115 billion – US$135 billion in 2026, as it pours money into data centres, AI infrastructure, and what CEO Mark Zuckerberg has described as "personal superintelligence".

That's an extraordinary number and one that would normally make investors nervous, but the market welcomed it.

The reason is straightforward. Meta is funding this AI arms race from a position of strength. Its core advertising business is growing rapidly, generating enormous cash flows, and still delivering operating margins above 40%. Management has also indicated that, despite the surge in investment, 2026 operating income should be higher than 2025.

The bigger question is whether the spending will ultimately be worth it.

In the near term, AI investment is likely to boost investor sentiment around Meta as an "AI winner" whilst also potentially boosting revenue growth but weighing on earnings-per-share growth in 2026 as depreciation and infrastructure costs ramp up.

Investors, therefore, need to look beyond next year to assess the payoff.

The bull case is that current investments strengthen Meta's moat, and if Meta's AI push leads to new products, better ad performance, and sustained elevated growth beyond 2026, the current spending surge could prove highly profitable over time.

Foolish bottom line

Meta's rally is a vote of confidence that Zuckerberg and his team are striking the right balance between growth, profitability, and AI investments.

There was also a sense, going into the result, that Meta wasn't priced at an extreme valuation multiple relative to its growth, though execution risk remained. The sharp share price reaction suggests investors are increasingly confident that Meta is on the right track.

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Saying that, I am also an investor who loves to buy shares at the kind of steep discounts that we do tend to see during a stock market correction or crash. As such, I do tend to keep some money on the sidelines for that time that the inevitable market crash rolls around.

Now, I, along with everyone else on the planet, have no idea when the next market crash will arrive. For all I know, it could be in 2026 or in 2036.

But I do know the companies that I will attempt to load the boat with when that crash does come. 

My stock market crash buy list for 2026

When the market goes through a period defined by intense fear, I usually try to prioritise companies that tend to trade at lofty valuations. That's because it is often the only time you can buy shares of these companies at reasonable prices. 

As such, I would have my eye firmly on two ASX tech shares in the next crash. Those are TechnologyOne Ltd (ASX: TNE) and Pro Medicus Ltd (ASX: PME).

Both of these companies are growing at exceptional rates, with high levels of free cash flow and compelling growth runways. As a result, it is normal for both TechnologyOne and Pro Medicus to trade with expensive price tags. But if there is a buying window to snatch up these stocks at a bargain price, I'll be trying hard to climb through it.

I would also be looking to buy more shares of Washington H. SouL Pattinson and Co Ltd (ASX: SOL). As I've long documented, Soul Patts is one of my top ASX investments, and any chance to buy more shares of this market-beater at low prices would (at least in my view) do wonders for my long-term wealth.

I wouldn't stop at the ASX, though. These days, stock market crashes are global events. And I will be turning to the US markets when the next one happens as well. Some of the stocks I would be looking forward to loading up on include Costco Wholesale Corp (NASDAQ: COST), Mastercard Inc (NYSE: MA), McDonald's Corp (NYSE: MCD) and Meta Platforms Inc (NASDAQ: META). These are all top-quality companies that (with the possible exception of Meta) never seem to go on sale. If they did, I would be there with as much cash as I could muster.

The post Here's my buy list if the stock market crashes in 2026 appeared first on The Motley Fool Australia.

With more than $8 billion in assets under management, QUAL is currently the fifth most popular ASX ETF on our markets. It comes in behind the Vanguard Australian Shares Index ETF (ASX: VAS), the Vanguard MSCI Index International Shares ETF (ASX: VGS), the iShares S&P 500 ETF (ASX: IVV) and the BetaShares Australia 200 ETF (ASX: A200).

Unlike those four ETFs, though, QUAL isn't a market-wide index fund that blindly invests in companies according to their market capitalisation, with few other considerations.

Instead, it tracks an index that actively screens companies to identify their quality. These screens include factors like a stock's return on equity, earnings stability and financial leverage.

After applying these screens to a range of internationally listed shares, the VanEck International Quality ETF settles on a portfolio of around 300 different stocks, hailing from more than a dozen different countries. These countries range from Switzerland, Japan and the United Kingdom to China, Denmark and Ireland.

However, the vast majority of QUAL's portfolio is drawn from the United States of America, which commands more than three-quarters of this ETF's weighted holdings.

So, let's get into what you're actually buying when purchasing QUAL units in 2026.

QUAL: What's in this ASX ETF's box?

Here are the current top ten holdings of the VanEck International Quality ETF, as well as their respective weightings in the QUAL portfolio:

1. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) at 5.67% of the total QUAL portfolio
2. Meta Platforms Inc (NASDAQ: META) at 5.02%
3. NVIDIA Corporation (NASDAQ: NVDA) at 4.64%
4. Apple Inc (NASDAQ: AAPL) at 4.62%
5. Microsoft Corporation (NASDAQ: MSFT) at 4.46%
6. Eli Lilly & Co (NYSE: LLY) at 3.44%
7. Visa Inc (NYSE: V) at 2.92%
8. ASML Holding N.V. (AMS: ASML) at 2.52%
9. Johnson & Johnson (NYSE: JNJ) at 1.86%
10. Walmart Inc (NYSE: WMT) at 1.77%

Some other significant QUAL holdings include Mastercard Inc (NYSE: MA), Netflix Inc (NASDAQ: NFLX), Costco Wholesale Corp (NASDAQ: COST) and Caterpillar Inc (NYSE: CAT).

Not only does this list reveal how dominant the US is in this ASX ETF, but it shows how similar its holdings are to a broad-market US index fund like the iShares S&P 500 ETF. We discussed that ETF just the other day, so check out how its holdings compare to QUAL's here.

This methodology seems to have worked quite well for the VanEck International Quality ETF, though. As of 31 December, QUAL units have returned an average of 14.8% per annum over the past ten years, and 22.85% per annum over the past three. It will be interesting to see if this performance keeps up in 2026.

This ASX ETF charges a management fee of 0.4% per annum.

The post Investing in the VanEck International Quality ETF (QUAL)? Here's what you're really buying appeared first on The Motley Fool Australia.

Only two Mag 7 shares delivered impressive capital growth, while the other five underperformed the major US indices.

Yep, they underperformed.

The health of the Mag 7 companies matters to Australian investors because we are heavily invested in them, whether we like it or not.

Got a superannuation fund? Chances are a chunk of your retirement savings are invested in these seven high-tech companies.

Own exchange-traded funds (ETFs) tracking the US or global markets?

You're definitely invested in the Mag 7 stocks.

The Mag 7's high market caps mean they dominate the S&P 500 Index (SP: .INX) and the Nasdaq Composite Index (NASDAQ: .IXIC).

Therefore, their performance has a direct impact on many Australians' investments.

Let's take a look at how the Magnificent 7 stocks performed in 2025, starting with the No. 1 riser.

And no, it's not the stock you think!

Magnificent Seven stocks in 2025

To set the scene for you, the S&P 500 rose 16.39% and the Nasdaq Composite lifted 20.36% last year. (Compare that to ASX shares here.)

Here's how the Magnificent Seven stocks compared to the broader market.

1. Alphabet Inc Class A (NASDAQ: GOOGL)

Both Class A and Alphabet Inc Class C (NASDAQ: GOOG) shares lifted 65% in 2025.

Class A stock closed at US$313 per share, and Class C shares closed at $313.80.

Nvidia Corp (NASDAQ: NVDA)

US stock market darling Nvidia still put in a good performance as it continues to leverage the artificial intelligence megatrend.

Stock in the US graphics and AI chip designer rose 39% to close at US$186.50 per share on 31 December.

In October, Nvidia became the first company in the world to reach a US$5 trillion market cap.

Investment platform Stake reports that Nvidia was one of the five most traded US stocks by Australian traders last year.

According to Stake's 2025 Retail Investor Report Card:

It beat revenue estimates every quarter in 2025 by an average of 8.9% and is on track to generate US$212B in FY26.

Its earnings have become a global market catalyst: Nvidia's results serve as a directional signal for traders worldwide.

For Stake investors, the biggest 'buy-the-dip' moment came during the DeepSeek moment in January, when Nvidia lost US$260B in market cap but buy orders surged 460%.

Microsoft Corp (NASDAQ: MSFT)

The Microsoft stock price rose 15% to close 2025 at US$483.62 per share.

Meta Platforms Inc (NASDAQ: META) 

Meta Platforms shares rose 13% to finish the year at US$660.09.

Tesla Inc (NASDAQ: TSLA)

Stock in electric vehicle manufacturer Tesla rose 11% to US$449.72 per share.

Stake analysts said Tesla was the only Magnificent Seven stock not to set a new share price record in 2025.

Apple Inc (NASDAQ: AAPL) 

US technology stock Apple rose by 9% to close at US$271.86 per share on 31 December.

Amazon.com, Inc. (NASDAQ: AMZN) 

The Amazon share price inched 5% higher to close at US$230.82 on 31 December.

Interesting sidenote

My US Fool colleague Trevor Jennewine recently covered the third-quarter report from Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B).

The report showed that the 'Oracle of Omaha', who retired at the end of last year, bought Alphabet stock — the best performer of the Magnificent Seven in 2025 — and continued to sell down Apple — the second-worst performer of the group — during the third quarter.

Berkshire Hathaway purchased 17.8 million shares in Alphabet, which now accounts for 2% of the company's $267 billion portfolio of 41 stocks.

Berkshire sold 41.7 million Apple shares, and although the company remains Berkshire's largest holding at 21%, its position has reduced by 74% in just two years.

The post Here's how the US Magnificent Seven stocks performed in 2025 appeared first on The Motley Fool Australia.

Given this enduring popularity, it's a great time, as we start another lap around the sun, to do a deep dive into this index fund. So let's talk about two reasons ASX investors might want to buy the Vanguard Australian Shares ETF in 2026, and two reasons why they might wish to reconsider an investment.

Two reasons why the VAS ETF is an ASX buy in 2026

VAS: Simple and cheap

One of the reasons ASX investors love investing in VAS is its simple nature. This index fund offers exposure to the largest 300 stocks listed on the ASX, weighted by market capitalisation. Nothing more, nothing less. Like all index funds, this avenue is appealing for many investors who wish to take a hands-off, passive approach to investing. The largest 300 companies in Australia change over time, VAS changes with them though, periodically rebalancing its portfolio to ensure that the successful stocks are added to, while the losers are weeded out.

The Vanguard Australian Shares ETF charges a relatively cheap 0.07% per annum for this service.

A stellar long-term track record

We can point to decades of historical data that show the Australian share market has always generated wealth-building returns for investors. The Vanguard Australian Shares Index ETF has itself returned an average of 9.15% per annum since its inception in 2009. But, as we looked at in August of last year, Vanguard itself has calculated that the Australian market returned 9.3% per annum over the 30 years to 30 June 2025.

Past performance is never a guarantee of future returns, of course. But it still gives us an insight into the potential benefits of long-term investing.

Two reasons to sell the Vanguard Australian Shares ETF (VAS)

So there are plenty of positives in buying the VAS ETF for an ASX portfolio. But this is arguably no slam dunk. Many investors have justified concerns about ploughing more capital into this fund in early 2026. Let's go through two.

Banks and miners

One of the primary concerns over buying more VAS units in the ASX investor community is its over-concentration on two sectors of the Australian share market. Most ASX investors know that bank stocks like Commonwealth Bank of Australia (ASX: CBA) and mining shares like BHP Group Ltd (ASX: BHP) dominate the ASX. But a look at VAS' portfolio throws this dynamic into sharp relief.

As it currently stands, more than 50% of any investment in VAS today would go into either financial or mining shares. That's 32.1% to financials and 22.1% to miners. The next most influential sector in this ASX ETF is healthcare, making up just 7.9% of VAS' portfolio. The big four banks alone attract more than $1 of every $5 invested in the fund.

This might be just fine with investors who prioritise dividend income. But any investor who wants true diversity might wish to at least dilute this heavy exposure to banks and miners with other ASX ETFs.

VAS: Where's the innovation?

Another potential concern that some ASX investors might have with the Vanguard Australian Shares ETF is the lack of innovative, exciting and quick-growing companies at its highest echelons. VAS' banks and miners might be mature, profitable businesses. But there aren't too many companies in this ETF that are moving fast or breaking things, to paraphrase Mark Zuckerberg.

While the flagship S&P 500 Index that tracks the US markets holds innovators like Amazon, Microsoft, NVIDIA and Zuckerberg's own Meta Platforms among its top holdings, most of the ASX's top stocks have been delivering steady but slow growth for decades.

If you'd like to invest in an index fund that includes at least some innovative, exciting companies that are growing at healthy clips, VAS might not be the fund for you.

The post 4 pros and cons of buying the Vanguard Australian Shares ETF (VAS) in 2026! appeared first on The Motley Fool Australia.

The good news is that exchange-traded funds (ETFs) remove much of that pressure and offer a simple way to invest.

With a single investment, you can gain instant diversification and exposure to hundreds or even thousands of companies.

For Australians starting their investing journey in 2026, here are five ASX ETFs that stand out as sensible, beginner-friendly options.

Vanguard Australian Shares ETF (ASX: VAS)

The Vanguard Australian Shares ETF is often considered a cornerstone ETF for local investors. It provides exposure to the 300 largest shares listed on the ASX, making it an easy way to invest in the Australian economy as a whole.

Its portfolio includes blue-chip names such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), and Wesfarmers Ltd (ASX: WES). For beginners, this fund offers simplicity, diversification, and a steady stream of income over time.

iShares S&P 500 ETF (ASX: IVV)

If you want global exposure without complexity, the popular iShares S&P 500 ETF is a strong place to start. It tracks the S&P 500 Index, giving investors access to 500 of the largest stocks in the United States.

Holdings include Microsoft Corp (NASDAQ: MSFT), Apple (NASDAQ: AAPL), NVIDIA Corp (NASDAQ: NVDA), Johnson & Johnson (NYSE: JNJ), and Visa Inc (NYSE: V). For beginners, this fund offers exposure to some of the world's most profitable businesses with a single, low-cost investment.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF could be worth considering. It is designed for investors who want broad international diversification beyond Australia. It invests across developed markets such as the United States, Europe, and Japan.

Its holdings include companies like Alphabet Inc (NASDAQ: GOOGL), Nestlé (SWX: NESN), Toyota Motor Corp (TYO: 7203), and LVMH Moët Hennessy Louis Vuitton (FRA: MOH).

Betashares Australian Quality ETF (ASX: AQLT)

The Betashares Australian Quality ETF takes a quality-focused approach to Australian shares. Rather than simply tracking the biggest companies, it targets businesses with strong balance sheets, reliable earnings, and solid cash flow.

Top holdings include Telstra Group Ltd (ASX: TLS), Macquarie Group Ltd (ASX: MQG), National Australia Bank Ltd (ASX: NAB), and Woodside Energy Group Ltd (ASX: WDS). This ETF could suit beginners who want a more selective take on the local market. It was recently recommended by analysts at Betashares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Finally, the Betashares Nasdaq 100 ETF adds a growth tilt to a beginner portfolio by tracking the Nasdaq-100 Index. It provides exposure to innovative companies shaping technology, healthcare, and consumer trends.

Holdings include Amazon.com (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), Broadcom (NASDAQ: AVGO), and Netflix (NASDAQ: NFLX).

The post 5 fantastic ASX ETFs for beginners in 2026 appeared first on The Motley Fool Australia.

Shares of Meta Platforms (NASDAQ: META) have soared 443% over the past three years, closing at $661.50 on Dec. 22. At this share price, Meta now trades in the same range where companies such as Apple, Nvidia, and Tesla previously announced forward stock splits.

While Meta has never executed a forward stock split since going public, the company's rising share price and growing earnings power have meaningfully increased the probability of a split in 2026.

Stock splits don't change the value of any investor's holdings, but here's why a Meta stock split could prove beneficial for investors, if it were to enact one.

Upside drivers

Although stock splits do not change a company's fundamentals, they tend to improve liquidity and broaden the investor base as they lower the per-share price (while increasing the number of shares), which can support higher trading activity and market valuation over time. While the availability of fractional shares has reduced some barriers to entry in stocks with high nominal share prices, research suggests that many retail investors still prefer owning full shares.

According to data from Bank of America's Research Investment Committee, companies that split their stock reported an average total return of 25.4% in the 12 months following the split announcement, more than double the 11.9% average return of the benchmark S&P 500 index in the same time frame. Hence, Meta's stock could see an incremental upside from improved liquidity and broader participation following a stock split.

Meta reaches almost 3.5 billion people daily across its family of apps, giving it unmatched global scale and pricing power in digital advertising. Management has also guided for fiscal 2025 capital expenditures to be in the range of $66 billion to $72 billion, mainly for expanding its artificial intelligence (AI) infrastructure.

These investments are already showing results. Meta's AI-driven ad tools are improving ad targeting efficiency and advertiser returns on ad spend. The company is also expanding its addressable market with newer ad surfaces, including on WhatsApp, Reels, and Threads.

Hence, for long-term investors, a potential stock split could serve as an accelerator on top of the company's robust fundamentals, which can drive up its share prices in the coming months. I think Meta could be a stock-split stock that could make investors rich.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The next stock-split stock that could make you rich appeared first on The Motley Fool Australia.

Artificial intelligence (AI) is responsible for adding trillions of dollars in value to a handful of companies over the last few years. Nvidia, for example, briefly touched a $5 trillion market cap this year, thanks to its dominant position in the market for graphics processing units (GPUs). Four other companies sit firmly above the $2 trillion threshold as we approach the new year. 

But three AI stocks currently have similar market caps around $1.6 trillion as of this writing, and are vying to become the first new $2 trillion company of 2026: Meta Platforms (NASDAQ: META), Tesla (NASDAQ: TSLA), and Broadcom (NASDAQ: AVGO). Here's my prediction for the next company to top the milestone, and it could come as soon as next year. 

Artificial intelligence is fueling all three

Meta, Tesla, and Broadcom have all seen their stock prices heavily influenced by advances in AI this year.

Meta stock climbed higher early in the year as its efforts to improve its recommendation algorithms bore fruit. Ad revenue climbed higher as time spent on its apps increased, and ads became more effective. However, the stock took a step back recently as management shared plans to increase its AI-related spending.

Tesla's value is heavily tied to its robotaxi service and AI innovations. The stock received a boost over the summer when it launched its robotaxi pilot in Austin, Texas. Investors added to those gains on promising progress on the company's next-generation AI chip for its vehicles.

Broadcom's custom AI accelerator business has gained momentum in 2025, as the company signed big contracts with OpenAI and Anthropic, the latter of which is buying Alphabet's Broadcom-designed tensor processing units (TPUs). To that end, Alphabet and Broadcom are seeing excellent progress in shifting more developer workloads to TPUs, which offer greater energy efficiency and cost savings versus Nvidia's GPUs.

Broadcom stock took a step back after its last earnings report, as many analysts were disappointed with management's expectation that greater AI chip sales would come at a lower gross margin.

While all three of these stocks have a path to a $2 trillion valuation in 2026, I expect Meta Platforms to reach the milestone first. Here's why.

AI-powered earnings growth at an attractive valuation

Even with its run rate of $200 billion in annual revenue, Meta is still growing its bottom line quickly. Adjusted earnings per share climbed 20% in the third quarter, and improvements in AI are the reason.

Meta has seen an increase in both ad impressions and price per ad for eight straight quarters. That indicates that it's increasing user engagement and opening new places within its apps for advertising while making ads more effective.

Management attributes a shift in its recommendation algorithm to make it more general across formats as the primary reason users are spending more time on its apps. Meta has seen similar improvements by applying the same methodology to its advertising algorithm. In other words, bigger models have directly translated into more revenue.

That trend should continue in 2026, as Meta opens up more opportunities for advertising, including on Threads and WhatsApp. It could also begin monetizing Meta AI, its generative AI chatbot. The improvements in its algorithms over the last couple of years should enable it to ramp up advertising quickly without as much negative impact on its pricing as we've seen in the past.

The bigger opportunity for Meta in 2026, though, may be the expansion of its generative AI features. It's reportedly working on an AI agent that can manage advertising campaigns for small businesses. CEO Mark Zuckerberg repeatedly talks about the opportunity to handle everything involved with creating, testing, and optimizing ad campaigns on its platform through an AI agent.

And chatbots specializing in sales and customer service for a company could open the door for more businesses to push Facebook and Instagram users to start messaging them through Meta's chat apps.

With small- and medium-sized businesses accounting for the bulk of advertisers on Meta's platform, these innovations have the potential to dramatically increase the amount they're willing to spend on ads. If the overhead for these clients is much lower, they can increase their ad spending and scale up their businesses faster.

Those efforts should fuel another year of strong revenue growth. And while depreciation expense from the increase in AI-related capital expenditures could eat into earnings growth, Meta should be able to manage continued improvements in earnings per share with the help of share repurchases.

The stock trades for just 26 times forward earnings expectations, which is much lower than Broadcom's multiple and less than one-tenth the multiple Tesla stock trades for. I expect Meta to fetch a higher earnings multiple as it proves its AI spending to be well worth it once again in 2026, pushing its valuation to $2 trillion. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Prediction: This AI stock could be the first new $2 trillion company in 2026 appeared first on The Motley Fool Australia.

Meta Platforms has a rare ecosystem

Meta Platforms ended the third quarter with 3.54 billion daily active users across its websites and mobile apps, an 8% year-over-year increase. The world's population is about 8.3 billion people. If we remove all those who are too young to have an Instagram account, it may well be the case that something like half of eligible adults (or young adults) worldwide visit at least one of Meta's websites and apps every single day. That user base is a veritable goldmine.

And the best part: Most of them are unlikely to go anywhere anytime soon, given the company's strong network effects. Consider why people open Instagram accounts. It could be to keep up with friends and family, to become an influencer, or to promote products for their businesses, among other reasons. For each of these uses, the platform becomes even more valuable as more people join in, and for those who are already in those networks, it makes little sense to leave.

Meta Platforms' ecosystem makes it an incredible target for advertisers. It also allows it to launch new monetization opportunities. Less than three years ago, Meta Platforms launched its X competitor, Threads -- it already has 150 million daily active users. According to management, it's on track to become the leader in its category.

Facebook Marketplace is another opportunity that fits naturally within the company's strategy. Anyone else starting an online platform to connect buyers and sellers would have to work hard to attract an audience. For Meta Platforms, it wasn't difficult since it already has a large one. So long as Meta Platforms' vast ecosystem stays in place, the tech leader should find many more monetization schemes, even as advertising remains the most important.

Meta is a buy-and-forget stock

Meta Platforms' work in AI is undoubtedly strengthening the business. For instance, AI-powered algorithms are helping it increase engagement while enhancing the return on investment marketers get from ads on its platforms. However, none of that would matter if not for the company's existing user base. Meta still has ample growth potential over the long run, and much of the fuel for that will be its vast ecosystem. That's why I am staying put.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 1 reason I will never sell Meta Platforms stock appeared first on The Motley Fool Australia.