Top 5 ASX growth shares to watch in September 2025

What are ASX growth shares?

ASX growth shares are companies listed on the Australian Securities Exchange that prioritise fast expansion over paying dividends. These stocks tend to reinvest profits into research, talent or tech to drive future revenue, and can deliver explosive short-term returns. For example, Zip Co surged 85.37% in just three months.

Growth shares typically trade at high price-to-earnings (P/E) ratios, as investors pay a premium for future potential. Life360’s P/E of 816.98 and Megaport’s 409.14 are prime examples of this optimism.

These companies often lead niche industries with proprietary technology or services. Megaport dominates software-defined networking, Life360 leads family safety apps, and Zip Co is known for its buy-now-pay-later platform.

However, the trade-off is volatility. Growth stocks can fall just as fast as they rise – even a small earnings miss can trigger sharp price drops.

How growth shares compare to other share types

Pros and cons of trading ASX growth shares

ASX growth shares can deliver spectacular gains, but not without risk. Zip Co’s 85.37% rise over just three months highlights the potential. Yet even top performers like NEXTDC saw more modest growth (10.63%), proving how wide the range of outcomes can be.

These shares sit between volatile penny stocks and steady blue-chip dividend stocks. For traders seeking momentum without extreme speculation, growth shares strike a middle ground.

Pros of ASX growth shares

• Potential for rapid capital gains in short periods
• Exposure to innovative sectors like AI, fintech, and digital media
• Often benefit from strong secular trends and tech adoption
• Can outperform the broader market in bull cycles

Cons of ASX growth shares

• High volatility: prices can drop sharply if targets are missed
• Most don’t pay dividends; gains rely on share price growth
• Valuations can be stretched, leading to overhyped expectations
• Sensitive to macroeconomic shifts like interest rate changes

Savvy traders often diversify across multiple sectors to reduce concentration risk. This article’s picks reflect that strategy: covering data centres (NEXTDC), fintech (Zip Co), media (Nine), social apps (Life360), and cloud networking (Megaport).

Why ASX growth shares are outperforming in 2025

Several powerful catalysts are propelling ASX growth shares to deliver exceptional returns, with some of the top names gaining between 10.63% and 85.37% in just three months.

Key drivers of ASX growth stock performance
 

• AI and data infrastructure boom
  • NEXTDC (+10.63%) and Megaport (+37.97%) are riding Australia’s AI adoption wave
  • Increased demand for data centres and low-latency cloud connectivity is boosting both revenue and investor sentiment
     
• Digital safety and social media growth 
  • Life360 (+69.38%) benefits from rising concerns around family safety and real-time location tracking
  • Its expansion into the US and new advertising business are adding new revenue layers in 2025
     
• Fintech expansion and online spending
  • Zip Co (+85.37%) is capitalising on BNPL demand as consumers shift toward flexible payment solutions
  • Its focus on Australia, New Zealand and the US is streamlining operations and increasing transaction volume

Why the ASX is a hotspot for growth right now

Australia’s combination of strong tech infrastructure, a supportive regulatory environment and exposure to global markets makes it an ideal launchpad for growth-focused companies.

Top 5 ASX growth shares to watch in September 2025

These five stocks delivered exceptional returns between May and August 2025. Here's what each company offers and why traders are paying attention.

Our selection criteria

• Performance: 10.63% – 85.37% gains in three months (May – August 2025)
• Growth focus: profits reinvested in R&D and expansion
• Sector diversity: tech, media and fintech coverage

Past performance doesn't guarantee future returns – all investments and trades carry risk.

Overview of the ASX growth shares in this article

You can trade all the shares listed in this article via CFDs through our platform, and also directly buy and sell all of them via our share trading platform.

1. NEXTDC Ltd (ASX: NXT)

Industry: technology

Market cap: A$9.39 billion¹

P/E ratio: 500²

As Australia's leading Tier‑III and IV data centre operator, NEXTDC services global hyperscalers, cloud providers and AI-native enterprises.

The company is heavily investing in sustainability initiatives by building an energy-efficient platform, and it offers its customers the option to offset the carbon footprint of their digital infrastructure through its NEXTneutral initiative.

Highlights:

• As of 7 August 2025, the share price has grown by 10.63% since 8 May 2025
• 1H25 results indicate net revenue up by A$18.7 million³
• Invested A$1.003 million to further capital development projects in 1H25⁴

2. Nine Entertainment Co Holdings Limited (ASX: NEC)

Industry: media

Market cap: A$2.75 billion⁵

P/E ratio: 30.07⁶

As Australia’s largest media conglomerate, Nine Entertainment can trace its history back to Sir Frank Packer, whose Channel 9 became Australia’s first ever commercial TV network.

In 2018, Nine merged with Fairfax Media, expanding its brands and investments across TV, radio, video on demand, print, digital and real estate classifieds.

It’s most well-known for its brands Nine Network, Nine Radio, The Sydney Morning Herald and more.

Following toxic workplace allegations, the company appointed Matt Stanton as CEO and MD, who is leading the charge on a company culture reboot. With him at the helm and Nine’s positive share price jump over the past three months, things are looking up for the media giant.

Highlights:

• As of 7 August 2025, the share price has increased by 15.15% since 8 May 2025
• As per its latest earnings report, Nine saw digital revenue growth in audio of 33%⁷
• It paid an interim dividend of A$0.035 per share – one of the few growth stocks on the ASX to pay dividends⁸

3. Megaport Limited (ASX: MP1)
 

Industry: network as a service (NaaS)

Market cap: A$2.45 billion⁹

P/E ratio: 409.14¹⁰

Megaport operates the largest software defined network (SDN) platform globally, providing around 975 data centres in 26 countries in North America, Europe, Asia and Australia. It’s a leader in NaaS solutions.

It launched Megaport AI Exchange (AIx), aiming to transform AI infrastructure in the same way it did with cloud technology when it first opened. This ecosystem is designed with various service providers, enabling clients to use third-party AI models, GPU as a service provider (GPUaaS) and handle complex, intensive tasks like training deep learning (DL) models.

In 2025, the company has been focused on expanding its global footprint, targeting financial services clients primarily.  

Highlights:

• The company’s share price has seen a 37.97% increase over the past three months, as of 7 August 2025
• Its H1 FY25 results indicate A$226 million in revenue¹¹
• Revenue was up 28% from FY23 to FY24¹²

4. Life360 Inc (ASX: 360)
 

Industry: safety and security/social media

Market cap: A$9.16 billion¹³

P/E ratio: 816.98¹⁴

Life360 provides location-based safety services to Australians and the US market, such as sharing and notifications.

Its main product is also called Life360 and is a family social networking platform that enables users to keep up with their family’s whereabouts.

It’s a freemium service with additional features available at an extra cost.

The company has continued to build on its 2024 momentum, when it launched an advertising business and listed on the Nasdaq.

Its international expansion is a key business driver, and the company’s focus on reaching 150 million monthly active users is an ambitious goal. It also hopes to surpass A$1 billion in revenue in the coming months and years.  

Highlights:

• The share price has grown a tremendous 69.38% over the past three months, as of 7 August 2025
• The Motley Fool states that the stock price has soared more than 1300% over the past five years¹⁵
• In Q1 FY25, the company reported monthly active users to have reached around 83.7 million people¹⁶

5. Zip Company Limited (ASX: ZIP)
 

Industry: financial services

Market cap: A$4.56 billion¹⁷

P/E ratio: 114.33

Zip Co, known colloquially as Zip, is a digital financial services company with interests in Australia, New Zealand and the US.  It operates in the buy-now-pay-later space, which enables consumers to purchase items and pay them off over a few weeks or months generally.

The company has sold off some of its brands, such as Payflex in South Africa and UAE-based Spotii, and is instead focusing on homegrown markets and the US.

Its FY24 scorecard was impressive, with A$868 million in revenue and a whopping A$10.1 billion in transaction value.

Highlights:

• Zip Co’s share price has seen impressive growth since early May – 85.37% as of 7 August 2025
• It recently implemented a share buy-back programme, indicating that the company might see its stock as undervalued¹⁸
• Its latest FY25 guidance shows it’s on track – its US time to value (TTV) growth was above 40% year over year (YoY)¹⁹

How to trade ASX growth shares with IG Australia

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX growth shares on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX growth shares
3. Choose the stock you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment 

FAQs about growth shares 

Footnotes
 

1. TradingView, August 2025
2. The Motley Fool, August 2025
3. NEXTDC earnings results, February 2025
4. NEXTDC earnings results, February 2025
5. TradingView, August 2025
6. TradingView, August 2025
7. Nine Entertainment earnings report, February 2025
8. Nine Entertainment earnings report, February 2025
9. TradingView, August 2025
10. TradingView, August 2025
11. Megaport, August 2025
12. Megaport earnings report, February 2025
13. TradingView, August 2025
14. TradingView, August 2025
15. The Motley Fool, May 2025
16. Nasdaq, May 2025
17. TradingView, August 2025
18. Zip Co, June 2025
19. Zip Co, May 2025