Top 5 ASX growth stocks to watch in August 2026

Top 5 ASX growth stocks to watch in August 2026

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Here we are again: new month, new opportunities may appear for investors searching for companies with potential to outperform the market. In August 2026, several ASX-listed businesses draw the attention of traders because of their innovative business models, strong earnings momentum, and long-term growth prospects. No stock can guarantee delivery of future returns, but the following companies have compelling stories that may make them worthy to be included in a trader’s watchlist:

Weebit Nano (ASX: WBT)

Few Australian tech companies have generated as much excitement in recent years as Weebit Nano. An important player in the semiconductor industry, Weebit develops Resistive Random Access Memory (ReRAM), a new memory technology that is a viable alternative to conventional flash memory.

Because of AI, there’s louder and more aggressive calls for faster, more energy-efficient chips. They are used in a wide range of products like autonomous vehicles, edge computing, and handheld devices, This trend offers Weebit Nano and its products a sizeable opportunity in the memory technology market.

Weebit doesn’t manufacture the chips itself, but rather licenses the intellectual property to semiconductor manufacturers. This asset-light model allows the company to pursue commercialisation without having to build and operate its own semiconductor fabrication facilities.

Make no mistake though: Weebit is considered a high-risk growth stock. It offers exposure to one the world’s fastest-growing tech segments. Investors must be aware that growth-stage companies can experience significant share price volatility as commercial milestones are achieved or delayed.

4D Medical (ASX: 4DX)

4DMedical is an Australian healthcare technology company focused on respiratory imaging and lung-function assessment. Its core technology, XV Technology, uses dynamic medical imaging to generate quantitative measurements of regional lung ventilation, giving clinicians additional information to assess respiratory function.

The technology has applications in the assessment and monitoring of pulmonary conditions and may provide clinicians with additional insights beyond those available from conventional structural imaging alone. As demand for respiratory healthcare continues to grow, particularly as populations age and chronic respiratory conditions remain widespread, 4DMedical is positioning its technology within an expanding healthcare market.

The company has also been expanding its presence in the US market through commercial partnerships and adoption of its technology by healthcare providers. For investors considering 4DMedical as a growth stock, the company's future performance is likely to depend on factors including further clinical adoption, commercialisation and expansion in the US market.

DroneShield (ASX: DRO)

DroneShield has grown from a specialist defence technology company into a prominent Australian counter-drone technology provider. Its systems are designed to detect, identify and counter unmanned aerial systems and are used by defence and government agencies, critical infrastructure operators and other organisations across international markets.

As drones become more accessible, governments and organisations are placing greater emphasis on counter-drone capabilities as part of broader defence and security strategies. DroneShield has benefited from this trend through international contract wins and investment in its manufacturing capacity, although the timing of large government contracts can lead to fluctuations in quarterly results.

Recent financial updates highlight both the company's rapid growth and the uneven nature of contract-driven revenue. Margins can vary depending on product mix, production costs and the timing of major contracts. For investors, DroneShield's longer-term prospects are therefore linked not only to rising defence spending, but also to its ability to convert demand for counter-drone technology into sustainable contracts, scale production and maintain its financial performance.

TechnologyOne (ASX: TNE)

TechnologyOne is an enterprise software provider that specialises in cloud-based business solutions for sectors including government, education, health and other large organisations. Its flagship SaaS platform provides enterprise resource planning (ERP) and related business applications, giving the company exposure to organisations that rely on long-term software solutions.

TechnologyOne has been shifting its business towards a SaaS model, increasing the proportion of recurring revenue generated from cloud-based subscriptions. The model can also provide greater revenue visibility and support longer-term customer relationships, although recurring revenue does not eliminate the risks associated with changing economic conditions or competitive pressures.

TechnologyOne has delivered sustained revenue and earnings growth in recent years, supported by the continued expansion of its SaaS operations. For investors, the company may appeal as a more established technology business offering exposure to the growing enterprise software market, although its valuation and future share-price performance remain dependent on continued growth, execution and broader market conditions.

Rio Tinto (ASX: RIO)

At first glance, Rio Tinto may not fit the definition of a growth stock. As one of the world's largest mining companies, it is often associated with dividends and established operations rather than the rapid expansion typically associated with smaller growth companies. However, Rio Tinto is investing in commodities such as copper and lithium while maintaining its position as a major iron ore producer.

Growth investing is not always about finding emerging companies. Established businesses can also enter new growth phases by expanding into markets or commodities with favourable long-term demand prospects.

Large mining companies can also benefit from economies of scale, established infrastructure and strong cash generation. These characteristics can help them fund capital-intensive projects while returning capital to shareholders, although mining remains highly exposed to commodity prices and global economic conditions.

For Rio Tinto, its exposure to both established iron ore operations and growth areas such as copper and lithium gives investors a different proposition from smaller technology companies. Its future performance will depend on factors including commodity prices, production levels, project execution and demand from major markets such as China.

Trade CFDs on ASX growth stocks

Australia’s share market continues to produce companies that are shaping industries. They may each operate in different sectors, they all represent businesses with compelling narratives worth following in August 2026.

And if you’re looking to trade ASX-listed shares, FP Markets provides access to share CFDs across an extensive range of Australian companies. We urge you to create a trading account today and take advantage of advanced trading platforms, competitive pricing, and trading tools to capitalise on opportunities in the country’s most exciting growth stocks. Open an account today with FP Markets and start exploring global markets.