Best ASX Stocks to Buy Now (5 December 2025): Top Australian Shares for AI, Resources and Dividends

This article is general information only and is not personal financial advice. Always do your own research or speak with a licensed adviser before investing.

1. What’s happening on the Australian stock market today?

The S&P/ASX 200 closed up 0.19% at 8,634.60 on 5 December 2025, with gains led by materials, financials and technology, while consumer discretionary and energy lagged. Big movers included BHP, Fortescue, lithium stocks like IGO and Mineral Resources, and tech names such as Life360 and NextDC. ^[1]

Intraday commentary from Market Index shows the index effectively finishing the week flat, as strong resource stocks were offset by renewed interest‑rate worries. The Australian 10‑year bond yield has jumped to around 4.7%, and markets are now pricing in the chance of another RBA hike by late 2026 after hot wage and spending data. ^[2]

Other key developments today:

APRA has proposed a three‑tier banking prudential framework, with a new “Most Significant Financial Institutions” tier for the big four banks plus Macquarie. ^[3]
UBS upgraded most major lithium stocks, raising targets for Liontown, Mineral Resources, IGO and Pilbara Minerals after a sharp rebound in lithium prices. ^[4]
NextDC (NXT) surged after announcing a landmark AI infrastructure deal with OpenAI. ^[5]

Against that backdrop, the “best stocks to buy” on the ASX right now tend to cluster around three big themes:

AI and digital infrastructure
High‑quality healthcare and resources at reasonable valuations
Reliable dividend and income plays

Below are some of the most widely highlighted ASX names today, based on fresh broker notes, company announcements and independent lists of top Australian shares.

2. How this list was built (and what “best” means here)

Rather than a personal stock tip sheet, this is a curated view of what many analysts and data-driven screens are favouring in December 2025:

Repeated appearances in independent lists of “best” or “top” ASX stocks – for example, Finder’s algorithmic list of the “Best ASX stocks for 2025” (Fortescue, Rio Tinto, Woodside, Santos and more). ^[6]
Positive, price‑sensitive news or rating upgrades this week (like NextDC’s OpenAI MoU or WiseTech’s rating upgrade).
Reasonable fundamentals (earnings power, balance sheet, or dividend profile), often highlighted by broker research or specialist platforms.

You should treat the names below as a shortlist for deeper research, not as one‑click buy recommendations.

3. AI and digital infrastructure: NextDC & WiseTech Global

3.1 NextDC (ASX: NXT) – AI infrastructure pure play after OpenAI mega-deal

NextDC has become the story stock of the day after announcing a strategic Memorandum of Understanding with OpenAI.

The MoU will see OpenAI and NextDC develop a next‑generation hyperscale AI campus and large‑scale GPU supercluster at NextDC’s S7 site in Eastern Creek, Sydney, under the new “OpenAI for Australia” program. ^[7]
Reuters reports that the project could amount to around A$7 billion of AI infrastructure investment, with S7 planned to host up to around 550–650 megawatts of capacity and OpenAI as anchor customer. ^[8]
The announcement sent NextDC shares up around 8–11% intraday, making it one of the best performers on the ASX today. ^[9]

Commentary from IG and other analysts notes that data‑centre operators like NextDC are capital‑intensive and cyclical: FY25 EBITDA forecasts have already been revised down from around A$340m to A$225m, underlining forecasting risk. ^[10]

Why many investors are watching NXT now

Direct, high‑profile exposure to the global AI build‑out on Australian soil.
Strong demand tailwinds for colocation and AI compute, plus a marquee partnership that could drive further enterprise demand. ^[11]
Potential long‑term pricing power if AI data‑centre capacity remains scarce.

Key risks

Huge capex bill and power requirements, with several reports flagging uncertainty around energy supply and costs for the proposed AI campus. ^[12]
Execution risk on multi‑year builds; any oversupply or delay in AI demand could hit returns. ^[13]

For growth‑oriented investors, NextDC is one of the clearest current plays on Australia’s AI infrastructure boom, but also one of the more volatile.

3.2 WiseTech Global (ASX: WTC) – Logistics software leader back in favour

WiseTech, the logistics software company behind the CargoWise platform, has just received a rating upgrade from RBC Capital, which lifted the stock to “Outperform” from “Sector Perform” and set a new price target of A$110 (down slightly from A$120). ^[14]

RBC’s rationale:

The new commercial model is now largely bedded down, with mandatory adoption for around 95% of customers from 1 December.
WiseTech shares have underperformed materially, improving the valuation multiple.
Cost synergies from the E2open acquisition are tracking better than expected, with most of the roughly A$50m in targeted savings for FY27 now anticipated in FY26. ^[15]

WiseTech’s own investor materials also highlight a large global logistics software TAM, ongoing product expansion and AI‑driven optimisation features. ^[16]

Why WTC is appearing on “buy” lists

High‑margin, sticky enterprise software; many brokers see long runway for earnings growth.
Fresh rating upgrade after a period of share‑price underperformance gives a “better skewed” risk‑reward, in RBC’s words. ^[17]

Key risks

Still a premium‑valuation tech stock – any growth wobble can be punished.
Integration and execution risk following the E2open deal and new commercial model roll‑out. ^[18]

For investors comfortable with higher‑valuation growth names, WiseTech is one of the top ASX tech stocks currently being upgraded by major brokers.

4. Healthcare quality at a discount: CSL Limited

CSL (ASX: CSL) – Oversold biotech giant with a new A$1bn vaccine facility

CSL, one of the ASX’s most important healthcare blue‑chips, has had a bruising year. Multiple sources note the shares are down roughly a third from their 52‑week highs, with a trading range around A$168–290 over the past year and the price recently in the low A$180s. ^[19]

Several articles now describe CSL as “massively oversold”, arguing that high‑quality earnings and strong cash flow don’t justify such a large de‑rating. ^[20]

Recent catalysts include:

A new A$1 billion cell‑based influenza vaccine and antivenom manufacturing facility opening in Melbourne. It’s the only cell‑based flu vaccine facility in the Southern Hemisphere and the only site worldwide capable of producing all 11 Australian antivenoms plus the human Q‑Fever vaccine. ^[21]
The facility is designed to supply Australia and international markets and supports a supply chain worth an estimated A$300m annually to the Australian economy. ^[22]
CSL has also announced a large on‑market share buyback and cost‑cutting program, signalling management confidence in long‑term earnings and balance‑sheet strength. ^[23]

At current prices, data from StockLight and other platforms suggest CSL trades on a P/E around the high‑teens, with dividend yield around 1.6–1.8% – lower income but tied to defensive, global healthcare earnings. ^[24]

At the index level, the broader ASX healthcare sector’s rebound has been mixed, with CSL, Pro Medicus and Sonic Healthcare sending conflicting signals, according to recent market commentary. ^[25]

Why CSL is back on watchlists

Rare chance to buy an A$80bn+ biotech leader after a deep drawdown.
Structural growth drivers in plasma therapies, vaccines and nephrology. ^[26]
New, world‑class manufacturing asset in Melbourne that should reinforce long‑term earnings from Seqirus vaccines and antivenoms. ^[27]

Key risks

Execution risk on restructuring, cost cuts and any spin‑off or re‑positioning of Seqirus. ^[28]
Healthcare reimbursement and regulatory risk across multiple markets.
Valuation could stay compressed if bond yields stay high or if earnings disappoint.

For long‑term, defensive growth, CSL is one of the most widely discussed “quality on sale” ASX stocks as of early December 2025.

5. Resources for growth and income: BHP, Fortescue, Rio and lithium

5.1 BHP Group (ASX: BHP) – Copper, iron ore and decarbonisation

BHP remains the anchor holding in many Australian portfolios and continues to attract bullish commentary:

Simply Wall St highlights that BHP has begun testing Australia’s first Caterpillar 793 XE battery‑electric haul trucks at its Jimblebar iron ore mine (in partnership with Rio Tinto and Caterpillar), as part of a push toward zero‑exhaust mining haulage and lower long‑term operating costs. ^[29]
The same analysis notes that while these trials are positive for ESG and future costs, near‑term share‑price drivers still hinge on iron‑ore prices and delivery of major projects like Jansen potash. ^[30]
BHP’s August 2025 Economic and Commodity Outlook emphasised resilient demand for its key commodities and stronger‑than‑expected copper demand under decarbonisation scenarios. ^[31]
Recent broker commentary (including UBS and Citi) points to solid earnings momentum and suggests BHP’s net profit could grow toward US$11–11.5bn by 2030, driven by copper, iron ore and potash. ^[32]

Price and yield:

Market data shows BHP trading around A$44–45, near the top of its 52‑week range of roughly A$33–45, after gaining over 20% since the FY2026 financial year began. ^[33]
Livewire’s survey of income stocks puts BHP’s trailing dividend yield around 5.6%, with a forward consensus yield near 5% – comfortably above most term‑deposit rates. ^[34]

Why BHP remains a core “best stock” candidate

Scale, diversification and a fortress balance sheet give resilience through cycles. ^[35]
Beneficiary of long‑term copper and potash demand in energy transition scenarios. ^[36]
Attractive franked dividend yield plus potential further capital returns if commodity prices stay firm. ^[37]

Key risks

Commodity price downturn (iron ore, copper, coal) could hit earnings and dividends. ^[38]
Cost overruns and delays at mega‑projects like Jansen potash already running above budget. ^[39]

5.2 Fortescue (FMG) and Rio Tinto (RIO) – High-yield iron ore giants

Fortescue (FMG) and Rio Tinto (RIO) show up repeatedly on independent “best stocks” and income lists:

Finder’s algorithm‑driven “Best ASX stocks for 2025” list currently ranks Fortescue #1 and Rio Tinto #2, reflecting strong multi‑year share‑price performance and robust earnings. ^[40]
Fortescue has delivered a 10.7% one‑year return and 10.9% annualised over five years, according to the same dataset. ^[41]
Livewire notes Fortescue’s trailing dividend yield above 10% and flags both Fortescue and Rio as central to many income portfolios, with BHP and the big banks rounding out the picture. ^[42]

On the Rio side, recent Capital Markets Day commentary highlights:

A plan to lift production around 3% per year to 2030, focused on copper, iron ore and lithium projects like Oyu Tolgoi, Simandou and Rincon.
Aiming for 40–50% higher EBITDA by 2030 under long‑run price assumptions, along with a US$1–2bn decarbonisation spend (down from prior plans). ^[43]

Why FMG and RIO are still on many “buy” lists

Very high franked dividends compared with term deposits and bonds. ^[44]
Ongoing demand for iron ore in Asia, plus growing copper exposure (especially for Rio). ^[45]

Key risks

Highly cyclical earnings driven by iron‑ore prices and Chinese steel demand.
ESG, decarbonisation and political risk around large mining projects.

5.3 Lithium majors: MIN, IGO, PLS, Liontown – Rebound after UBS upgrade

Lithium stocks have been among the most volatile areas of the ASX, but today they’re back in focus:

Market Index reports that UBS upgraded its ratings and price targets for several lithium majors, including Liontown (LTR), Mineral Resources (MIN), IGO and Pilbara Minerals (PLS), after a sharp market re‑rating in recent weeks. ^[46]
Targets were raised materially (for example, Liontown’s target from A$0.80 to A$1.80 and PLS from A$2.40 to A$4.00), signalling that UBS sees the recent recovery as more than just a short squeeze. ^[47]

In the broader market wrap, lithium names were singled out as some of the top performers on 5 December, with double‑digit intraday gains in some cases. ^[48]

Why some investors are rotating back into lithium

Valuations have come down dramatically from the 2021–2022 mania, and major houses now see better risk‑reward. ^[49]
Structural demand for EVs and energy storage remains intact, even if the cycle is messy.

Key risks

This is still a deeply cyclical commodity with oversupply risk and big price swings.
Many lithium stocks remain speculative and sensitive to single‑asset execution.

For most portfolios, it’s common to keep lithium exposure small and diversified (for example via a basket or ETF) rather than concentrating in one name.

5.4 Gold and uranium – Tactical plays for risk-tolerant investors

Gold and uranium miners have been quietly taking a larger share of the ASX indices:

The Australian Financial Review recently noted that soaring gold miners are pushing their way into the S&P/ASX 200, with at least two gold producers set to join the benchmark, displacing other sectors. ^[50]
Market Index’s live blog today highlighted a strong exploration update from Northern Star Resources (NST), emphasising mine‑life extension opportunities across multiple regions. ^[51]
Uranium names like Lotus, Elevate Uranium and Bannerman were up between 5–12% intraday on 5 December, with commentators linking the move in part to public comments about small nuclear reactors as a solution for AI data‑centre power demand. ^[52]

Why gold/uranium are on some radars

Gold can act as a macro hedge when real yields or geopolitical risks spike.
Uranium is a high‑beta way to express a view on nuclear’s role in decarbonisation and AI‑era power needs.

Key risks

Both segments are high volatility, stock‑specific and sentiment‑driven; not typical “core” holdings for conservative investors.

6. Income and defensives: banks, energy and insurers

6.1 Big four banks – solid income amid regulatory change

The big banks – Commonwealth Bank (CBA), Westpac (WBC), NAB and ANZ – remain central to the ASX income story:

Livewire’s survey of the “10 most‑tipped ASX income stocks for 2025” shows financials making up 40% of the list, with Westpac and CBA near the top in terms of EPS and strong one‑year performance. ^[53]
Consensus one‑year forward dividend yields for Westpac and BHP are around 5%, with CBA and NAB not far behind. ^[54]
Today’s trading saw CBA up 0.7%, Westpac 1.1% and NAB 0.9%, helped by supportive sentiment and the new APRA consultation on bank capital tiers. ^[55]

APRA’s proposed three‑tier prudential framework would place the four majors plus Macquarie into a “Most Significant Financial Institutions” bucket, with tighter standards but also clearer expectations. ^[56]

Why the banks still appeal

Fully franked dividend yields that beat most term deposits even before franking credits. ^[57]
Ongoing buybacks and conservative capital management.
Leverage to any eventual rate cuts or stabilisation in credit losses.

Key risks

Higher‑for‑longer rates could pressure mortgage customers and bad‑debt charges.
Regulatory changes and competition from fintechs and non‑bank lenders.

6.2 Energy majors and insurers – Woodside, Santos, QBE, Suncorp

Beyond banks and miners, several energy and insurance names feature heavily in current “best stock” lists:

Finder’s December 2025 list highlights Woodside Energy (WDS), Santos (STO), QBE Insurance (QBE) and Suncorp (SUN) among its top 10 ASX stocks based on an algorithm that weighs price performance, earnings and volatility. ^[58]
Livewire’s income analysis shows Woodside and APA Group with some of the highest dividend yields on the market (above 8%) and projects Woodside’s forward yield at ~9.1%. ^[59]

Energy and insurers play different roles:

Woodside and Santos offer leveraged exposure to global LNG and oil markets plus strong dividends, but are heavily impacted by commodity prices and project risk. ^[60]
QBE and Suncorp benefit from higher interest rates via investment income, while facing climate and catastrophe‑related claims risk. ^[61]

For many income‑seeking investors, a mix of banks, resources, pipelines and selected energy/insurance names is forming the backbone of high‑yield ASX portfolios going into 2026. ^[62]

7. Speculative corner: penny stocks and microcaps

For completeness, it’s worth noting that high‑risk penny stocks are also back in the headlines, though these are not suitable for most investors:

A recent December 2025 round‑up of ASX penny stocks highlighted names like Aura Energy, which has a market cap around A$165m but remains pre‑revenue and unprofitable – a classic example of the speculative end of the market. ^[63]

Microcaps can deliver outsized returns but also massive drawdowns. If you dabble here at all, it’s wise to:

Keep position sizes very small.
Assume binary outcomes (major success or near‑total loss).
Focus on diversification and risk control first.

8. Building a portfolio around today’s “best ASX stocks”

If you’re trying to translate all this into an actual portfolio, one common framework is:

Core index or blue‑chips
- Anchor your portfolio with diversified, high‑quality names like BHP, CSL, CBA, WBC, RIO or an ASX 200 ETF.
- These provide broad market exposure, dividends and lower single‑stock risk. ^[64]
Thematic growth satellites
- Add measured exposure to AI infrastructure and software via NextDC (NXT) and WiseTech (WTC). ^[65]
- Consider a modest allocation to lithium and other energy‑transition metals through diversified miners like MIN, IGO or PLS, recognising the volatility. ^[66]
Income sleeve
- Use banks, Fortescue, BHP, Woodside, APA and Telstra (where appropriate) to build a franked income stream that can compete with term deposits over the cycle. ^[67]
Small speculative bucket (optional)
- For experienced, risk‑tolerant investors only, allocate a small amount to gold, uranium or selected microcaps, fully prepared for large swings. ^[68]

9. Key risks to watch into 2026

Before buying any ASX stock – even the “best” – keep these macro and market risks in mind:

Interest‑rate path: Australian 10‑year yields near 4.7% and renewed RBA hike expectations can pressure valuations, especially for growth and property‑sensitive sectors. ^[69]
Global growth and China exposure: Miners and energy stocks are highly sensitive to Chinese growth, steel demand and commodity cycles. ^[70]
Earnings downgrades: Markets are near highs; any disappointment from BHP, CSL, banks or tech leaders could trigger sharp corrections. ^[71]

10. Final word

On 5 December 2025, the Australian market is being pulled between higher bond yields and strong themes in AI, resources and dividends.

Across multiple independent sources, the names that keep resurfacing as candidates for “best ASX stocks to buy now” include:

NextDC (NXT) and WiseTech (WTC) – AI and logistics software growth. ^[72]
CSL (CSL) – a temporarily out‑of‑favour global healthcare leader with new vaccine infrastructure. ^[73]
BHP, Fortescue, Rio Tinto – core resource holdings combining growth and income. ^[74]
Banks, Woodside, APA and insurers – the backbone of many dividend‑heavy portfolios. ^[75]

Which of these are genuinely “best” for you depends on your time horizon, risk tolerance, income needs and existing diversification. The smartest next step is to pick a handful of these names, read the latest company reports and broker notes in full, and stress‑test how they’d behave in both bull and bear scenarios.