Guess which ASX tech share is soaring 16% on a new Google deal

This tech share has had a great past 12 months.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • AI-Media share price jumped on news that it has struck a deal with Google worth up to US$5m 
  • The ASX minnow will provide all Google employees with premium live captioning and translation services for internal meetings and events 
  • Sentiment towards ASX tech shares is improving and deals like this can only help the sector on its road to recovery  

Sentiment towards ASX tech shares has improved in recent months and Google's deal with one of our tech minnows could help further.

The Ai-Media Technologies Ltd (ASX: AIM) share price is currently up 15.71% at 40.5 cents. In contrast, the S&P/ASX Small Ordinaries Index (ASX: XSO) is 1.03% in the red.

A boy is about to rocket from a copper-coloured field of hay into the sky.

Image source: Getty Images

Deal between Google and this small ASX tech share

The small-cap ASX tech share jumped after it said it would become Google's lead global provider of premium live captioning and translation services for internal meetings and events.

The three-year agreement is valued at up to US$5 million. All Google employees will have access to Ai-Media's services.

But the ASX company warned that there is no guarantee that the contract will generate the full value of the agreement.

Strategic importance

It was quick to play up the "strategic importance" of the agreement between the ASX tech minnow and the global giant though.

Ai-Media's chief executive Tony Abrahams said:

We are incredibly excited to be partnering with Google, one of the world's leading technology companies, to improve the interconnectivity of its employees through our product offerings.

This is an important agreement for Ai-Media as it highlights our position as a trusted market leader, and it validates our ability to deliver high-quality and secure captioning services to a variety of global customers across different industries. Ai-Media is capitalising on the increasing demand for live captioning globally.

This agreement with Google demonstrates our product suite and technology is leading edge, and is expanding into more environments as video becomes a core communications tool for business.

ASX tech shares gaining traction

ASX tech shares have started to rebound following their brutal sell-off early this year. Deals like this show that there is value to be found as many of these shares are still nursing big losses.

In another boost to confidence, some ASX tech shares have started to attract takeover interest. These include the MOQ Ltd (ASX: MOQ) share price, and more recently, the Nearmap Ltd (ASX: NEA) share price.

Ai-Media share price snapshot

There seems like there may be a lot more room for the AI-Media share price to run. The shares have shed over 57% over the past year.

In contrast, the S&P/ASX All Technology Index (ASX: XTX) has fallen 27% over the same period.

Motley Fool contributor Brendon Lau has positions in Nearmap Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Nearmap Ltd. The Motley Fool Australia has positions in and has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Buy now written on a red key with a shopping trolley on an Apple keyboard.
Technology Shares

3 ASX tech stocks that belong in every long-term portfolio

Brokers remain optimistic and see up to 130% upside.

Read more »

A man lays on a tennis court exhausted.
Technology Shares

Why are Catapult shares tumbling 13% on Monday?

The trading update aimed at lifting annual contract value appears to have made investors wary.

Read more »

A man rests his chin in his hands, pondering what is the answer?
Technology Shares

What's going on with BrainChip shares today?

The market doesn't appear sure about a deal announced today.

Read more »

busy trader on the phone in front of board depicting asx share price risers and fallers
Technology Shares

Got $5,000 to invest? Here are 2 ASX tech stocks to buy today

Trading well below recent highs and backed by strong tailwinds, they deserve a closer look.

Read more »

Army man and woman on digital devices.
Technology Shares

What is Bell Potter saying about DroneShield and EOS shares this week?

The broker has given its verdict on these two popular shares.

Read more »

A woman looks quizzical as she looks at a graph of the share market.
Technology Shares

Hub24 vs Netwealth: Which ASX tech stock is the better buy now?

Both rivals are expanding, but one faster than the other.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Technology Shares

3 bargain ASX tech shares I'd buy right now

Tech shares have sold off, but that could be creating opportunities.

Read more »

defence personnel operating and discussing defence technology
Technology Shares

Why EOS shares are tumbling 11% today as investors weigh a key defence catalyst

EOS shares fall 11% as investors await a key contract update.

Read more »