There are a lot of ways for investors to gain exposure to artificial intelligence (AI) on the ASX.
Some shares are directly involved with the technology, others have indirect exposure.
With that in mind, let's take a look at two Australian AI shares that could be top options for investors looking to gain access to this thematic in 2025. They are as follows:
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Harvey Norman Holdings Limited (ASX: HVN)
It might seem like an odd ASX share to buy for AI exposure, but Bell Potter doesn't see it that way.
It highlights that the retail giant stands to benefit greatly from an AI driven major upgrade/replacement cycle of devices purchased during the COVID-19 pandemic. It recently said:
[W]e see a sizable upside from the AI driven upgrade cycle/replacement cycle of devices purchased during COVID-peak to Consumer Electronics sales at HVN ahead. We view HVN as supported by exclusive access from brands/chip manufacturers given large format stores globally which are attractive to global technology brands/suppliers when launching new products. We see trading in the Black Friday weekend from today and into Christmas as a near-term catalyst with early signs to-date appearing supportive.
Bell Potter has a buy rating and $5.80 price target on its shares. Another bonus is that it expects above-average dividend yields of over 5% in both FY 2025 and FY 2026.
NextDC Ltd (ASX: NXT)
Another Australian AI share that could be a top pick in 2025 is NextDC. It is one of the region's most innovative data centre-as-a-service providers.
The team at Morgans believe that it is one of the biggest winners from the AI boom. That's because AI needs an obscene amount of data centre capacity to work its magic. The broker recently said:
Enjoying all the benefits of the AI growth opportunity with less volatility are the operators of data centres. Data centres are facilities that store, process, and manage the vast amounts of data foundational to AI, ensuring secure and efficient data flow, backup, and recovery.
Digital Realty recently reported a record sales quarter during which it sold double the data centre capacity of its previous high and about four times more capacity than it usually sells in a quarter. This reinforces our view that the significant demand for cloud computing and AI-related digital infrastructure is going to underpin attractive returns and long-term growth.
Morgans currently has an add rating and $20.50 price target on NextDC's shares.
