AI, Space and Defence Megatrends: Why WBT, EOS, and CDA could be ASX winners this decade

Artificial intelligence (AI) has become the defining investment theme of the decade, but beneath the excitement surrounding large language models and hyperscale data centres sits a broader transformation involving semiconductors, edge computing, defence technology and space infrastructure.

While global attention often focuses on semiconductor giants such as Nvidia, Broadcom and AMD, the Australian market offers a handful of compelling opportunities that provide exposure to many of the same structural growth trends.

The investment case for both the semiconductor and space industries remains powerful. The global semiconductor market is widely expected to exceed US$1 trillion before the end of the decade as artificial intelligence, autonomous systems, robotics, advanced manufacturing and connected devices require increasingly sophisticated computing hardware.

Meanwhile, the global space economy is forecast to expand from approximately US$600 to 650 billion today to around US$1.7 to 1.8 trillion by 2035, supported by satellite deployment, communications infrastructure, defence spending, Earth observation, navigation systems, space security and sovereign space capabilities.

Australia's listed market remains relatively underrepresented in both sectors. However, that scarcity can work in investors' favour. Successful commercialisation of a technology platform, the signing of a major licensing agreement or a significant defence contract can have an outsized impact on valuation compared with larger and more mature industries.

After reviewing the ASX landscape, five securities stand out as particularly relevant to investors seeking exposure to these long-term themes: Weebit Nano (ASX: WBT), BrainChip Holdings (ASX: BRN), Electro Optic Systems (ASX: EOS), Codan (ASX: CDA), as well as the BetaShares Global Robotics and AI ETF (ASX: RBTZ). Together, they offer exposure across semiconductor intellectual property, neuromorphic computing, defence technology, counter-drone systems, space infrastructure and global AI adoption.

Five Securities Positioned for the Next Technology Cycle

Weebit Nano (ASX: WBT)

If we had to identify the purest semiconductor intellectual property opportunity on the ASX today, Weebit Nano would likely sit at the top of the list.

The company develops Resistive Random Access Memory, or ReRAM, a next-generation non-volatile memory technology designed to address many of the limitations associated with embedded flash memory. ReRAM offers lower power consumption, greater endurance, faster write speeds and improved scalability as semiconductor manufacturing continues moving towards increasingly advanced process nodes.

The company has undergone a remarkable transformation over the past several years. Its market capitalisation sits at approximately A$1.50 to A$1.65 billion, while active commercial traction has driven projected FY26 revenue expectations past the A$10 million threshold.

More importantly, the market increasingly views Weebit as a future semiconductor intellectual property licensing business rather than a research and development project. The commercialisation pathway has become considerably clearer through licensing agreements (including key partnerships with Tier 1 foundries and major players like Texas Instruments), industry partnerships and the validation that comes from engagement with leading semiconductor companies.

If ReRAM gains meaningful adoption across automotive electronics, industrial automation, edge AI processors, embedded systems and advanced computing devices, the company could generate highly attractive recurring royalty streams. The opportunity remains significant because memory technology sits at the centre of virtually every modern semiconductor device. While execution risk remains present, Weebit arguably offers one of the most attractive risk-reward profiles among emerging ASX technology companies.

BrainChip Holdings (ASX: BRN)

BrainChip remains one of the most debated technology stocks on the Australian market.

The company develops Akida, a neuromorphic computing architecture designed to mimic certain characteristics of biological neural networks. Unlike conventional AI processors that rely heavily on cloud infrastructure and substantial power consumption, Akida seeks to perform AI inference directly on edge devices while maintaining extremely low energy requirements.

With a market capitalisation currently sitting between A$400 million and A$430 million, BrainChip remains a relatively small semiconductor intellectual property company compared with global peers. While full year revenues recently jumped over 300% to US$1.89 million, commercial adoption remains at an early stage, which explains why the stock continues to divide investors.

However, the underlying opportunity is substantial. Edge AI is expected to become one of the fastest-growing segments of the broader artificial intelligence ecosystem. Autonomous systems, smart sensors, defence platforms, industrial equipment, medical devices and wearable technologies all require increasingly efficient AI processing capabilities.

If Akida successfully establishes a niche within these markets, BrainChip could generate meaningful licensing revenue over time. The challenge is that the company must still demonstrate that technical capability can translate into sustained commercial success.

Among the names discussed in this report, BrainChip offers perhaps the highest upside potential but also the highest execution risk.

Electro Optic Systems (ASX: EOS)

Electro Optic Systems provides one of the most direct links between the space economy and the defence sector available on the ASX.

While EOS originated through its expertise in space tracking and space domain awareness, its growth story today increasingly revolves around integrated defence technologies, counter-drone systems, remote weapon stations, directed energy capabilities and sovereign security solutions.

The company's strategic positioning has become increasingly relevant as governments worldwide prioritise defence modernisation programs. Rising geopolitical tensions have accelerated investment in military technologies capable of addressing emerging threats, particularly drones, autonomous systems and increasingly contested operating environments. EOS has established expertise across several of areas and continues expanding internationally through both organic growth and strategic positioning.

What makes EOS particularly interesting is its exposure to multiple high-growth themes simultaneously. Driven by massive global demand for its "Slinger" counter-drone infrastructure, remote weapons systems, and space tracking platforms, the company's market capitalisation has surged closer to A$2.0 billion.

The company benefits from rising defence expenditure, increasing demand for counter unmanned aerial systems, growing interest in directed energy technologies and continued investment in space security infrastructure.

If governments continue prioritising sovereign defence capabilities, drone defence networks and space awareness systems, EOS could become one of Australia's most important defence technology exporters over the coming decade.

Codan (ASX: CDA)

Not every investment opportunity needs to be speculative. Codan represents a more mature and established way to gain exposure to defence technology, communications infrastructure and electronic systems.

The company develops mission-critical communications equipment, electronic warfare solutions and technology platforms used by military, government and emergency services organisations worldwide.

Today, Codan commands a market capitalisation approaching A$7.85 billion. With baseline revenue sitting at A$674 million and clear operational visibility targeting over A$850 million for FY26, the company produces substantial profits and cash flow, trading at a premium valuation multiple reflecting strong underlying fundamental.

This distinction is important because it provides investors with exposure to many of the same defence and security themes while reducing commercialisation risk.

The company's growth has been supported by increasing global defence expenditure, military modernisation programs and demand for resilient communications infrastructure.

As defence organisations become more reliant on secure digital communications, electronic warfare systems and intelligence capabilities, Codan remains well positioned to benefit.

BetaShares Global Robotics and AI ETF (ASX: RBTZ)

We believe BetaShares Global Robotics and Artificial Intelligence ETF offers a differentiated way to participate in the AI investment theme.

While much of the market's attention remains focused on software developers and semiconductor companies, RBTZ provides exposure to the physical layer of AI, including robotics, automation equipment, machine vision systems and emerging humanoid technologies.

The fund's underlying index was updated in March 2026 to expand its exposure to humanoid robotics and autonomous systems, reflecting the industry's shift from developing AI models to deploying them in real-world environments such as factories, warehouses, healthcare facilities and logistics networks.

The portfolio remains concentrated in global leaders such as NVIDIA, ABB, Keyence, Fanuc and Intuitive Surgical, with Industrials accounting for roughly 49% of assets and Technology around 32%. This positioning gives investors exposure to both AI infrastructure and the automation trends expected to benefit from rising corporate capital expenditure.

We see this as particularly attractive because the adoption of AI ultimately requires physical systems capable of acting on AI-generated insights, creating long-term demand for robotics, sensors and intelligent automation platforms.

Performance has reflected growing investor interest in the theme, with RBTZ delivering a total return of approximately 11.74% over the past year. Technically, the fund remains in an established uptrend, with support around A$15.00 to A$15.30 and major resistance near A$16.60. A breakout above that level could signal a fresh leg higher.

Overall, we view RBTZ as a compelling way to gain exposure to the convergence of AI, robotics and automation, themes that could become increasingly important as AI moves beyond data centres and into the broader economy.

Global X Semiconductor ETF (ASX: SEMI)

Global X Semiconductor ETF gives Australian investors exposure to some of the world's most important semiconductor companies at a time when demand for AI infrastructure continues to accelerate.

The fund tracks the Solactive Global Semiconductor 30 Index and provides diversified exposure across the semiconductor value chain, including chip designers, foundries, memory producers and manufacturing equipment suppliers. We see SEMI as a direct way to participate in the ongoing AI investment cycle, with industry forecasts pointing to continued strong growth in semiconductor demand driven by data centres, AI compute and high-bandwidth memory.

The portfolio is concentrated in industry leaders such as Taiwan Semiconductor Manufacturing Company, Broadcom, Micron, NVIDIA, Advanced Micro Devices, ASML and SK hynix. This mix provides exposure not only to AI chips themselves but also to the manufacturing infrastructure required to produce them.

We believe this broad exposure is a key strength, as it captures multiple beneficiaries of rising AI capital expenditure rather than relying on a single company or technology. The fund has also grown significantly in scale, with assets under management now surpassing A$1.1 billion, reflecting strong investor demand for semiconductor exposure.

SEMI has delivered exceptional performance over the past year, rising from a 52-week low of A$17.42 in July 2025 to an all-time high above A$44 in mid-June 2026. While the long-term trend remains constructive, investors should expect elevated volatility given the sector's sensitivity to interest rates, economic conditions and shifts in AI spending expectations.

From a technical perspective, the break above previous resistance establishes a new baseline for the fund, while the A$38 to A$40 range remains an important structural support zone.

Overall, we view SEMI as one of the most direct ways for Australian investors to gain diversified exposure to the global semiconductor industry and the expanding AI infrastructure buildout.

Outlook

The Australian market may not offer the same breadth of semiconductor and space opportunities available in the United States, but it does provide exposure to several businesses operating within some of the world's most important growth industries.

Weebit Nano offers perhaps the most compelling semiconductor intellectual property commercialisation story, while BrainChip provides exposure to a potentially disruptive computing architecture. Electro Optic Systems sits at the intersection of defence, counter-drone systems, space security and advanced technology, while Codan delivers a more established and financially robust way to participate in defence modernisation trends.

For investors seeking diversification, RBTZ offers broad exposure to the global artificial intelligence and robotics ecosystem.

If we consider the probability weighted outcomes across all scenarios, the most attractive opportunities appear to be those capable of generating recurring revenue from intellectual property, software and mission critical technologies. The next five years will likely determine whether Australia can produce globally significant leaders in semiconductors, defence technology and space infrastructure.

Should even a handful of these companies execute successfully, the sector could emerge as one of the most compelling long-term growth stories on the ASX.