In the volatile world of the stock market, ASX growth stocks often bear the brunt of market uncertainty. However, this can present an opportunity for investors with a long-term perspective. Two stocks in particular, NextDC Ltd (ASX: NXT) and Mesoblast Ltd (ASX: MSB), have caught my eye for their unique potential. While both stocks experienced a downturn on Monday, I believe their long-term prospects are worth exploring.
NextDC: Riding the AI Wave
NextDC is a $9 billion ASX-listed company that is perfectly positioned to benefit from the artificial intelligence (AI) boom. As businesses shift to cloud platforms and adopt AI workloads, the demand for secure and scalable digital infrastructure is skyrocketing. NextDC, a leading data center-as-a-service provider in the Asia-Pacific region, is at the forefront of this trend. By supplying critical infrastructure to global cloud platforms, large enterprises, and government clients, NextDC is well-positioned to capitalize on the growing demand for data center capacity.
In its first half-year results for 2026, NextDC reported total revenue of $232 million, up 13% year-over-year. Customer demand for data center capacity continued to rise, reaching almost 417 megawatts, an increase of 137%. This trend underpins a long runway for earnings growth, and NextDC is directing significant capital toward new facilities to expand its footprint and support growing customer demand.
Broker sentiment is positive, with some analysts setting a maximum 12-month price target of $31.02, implying a potential upside of about 142% from current levels. While the team at Morgans is more conservative, retaining its buy rating and a price target of $20.50, a potential gain of roughly 60% over 12 months, the overall picture is bullish.
Mesoblast: High-Risk, High-Reward Biotech
Mesoblast, on the other hand, is a high-risk, high-reward biotech play. The company is developing and commercializing allogeneic cell therapies for complex diseases, with some treatments already in use and others advancing through late-stage clinical trials. Mesoblast has the potential for strong growth this year, with product adoption increasing and the business well-funded to support its next phase of expansion.
Commercial momentum is also improving, with the latest quarterly update showing $30 million in net revenue, supported by rising demand for its therapy Ryoncil in the United States. However, risks remain substantial. Mesoblast has spent years funding clinical trials and has consumed significant capital along the way. The cell-therapy market is highly competitive, and regulatory setbacks have previously delayed progress. Successful commercial execution is still crucial.
Despite these risks, brokers remain optimistic. According to TradingView data, all covering analysts currently rate the share a strong buy, with targets ranging from $3.21 to $4.92. The average 12-month price target for the ASX growth stock sits around $4.05, implying a potential upside of about 92%. Analysts at Bell Potter Securities are also constructive, believing the company is well-positioned thanks to fresh debt funding and rising demand for Ryoncil, and have placed a $4.45 price target on the stock, suggesting a possible gain of roughly 110%.
In my opinion, both NextDC and Mesoblast offer exciting opportunities for investors willing to take a long-term view. While NextDC is benefiting from the AI boom and expanding its data center footprint, Mesoblast is a high-risk, high-reward biotech play with the potential for strong growth. Of course, investors should always conduct their own due diligence and consider their risk tolerance before making any investment decisions.
