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

Happy investor on tablet with finance graphs rising in overlay.
Technology Shares

WiseTech shares are taking off: Is this the start of a major comeback?

Strong FY26 results could trigger a major WiseTech valuation rethink.

Read more »

A couple sit in front of a laptop reading ASX shares news articles and learning about ASX 200 bargain buys
Earnings Results

FINEOS swings to profit in 1H26

FINEOS posted higher revenue, swung to profit, and outlined growth plans.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
Technology Shares

Megaport shares are up more than 100% in 3 months. Are they still a buy?

Can the AI hype drive this stock even higher?

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Broker Notes

Up 250%! Broker tips this dividend paying ASX All Ords tech stock for more outsized gains

A top broker forecasts more outperformance from this dividend paying ASX tech stock.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Technology Shares

Bravura Solutions FY26 earnings: Revenue, profit, and dividends climb

Bravura Solutions surged 13% yesterday after releasing the result.

Read more »

A line up of job interview candidates sit in chairs against a wall clutching CVs on paper in an office setting.
Technology Shares

Seek shares plunge 14% despite solid results: Did investors overreact?

The market may be pricing in slower growth, weaker guidance and long-term AI disruption.

Read more »

Man analysing data on his laptop.
Technology Shares

Why this could be the best ASX tech stock to buy and hold

Xero already has almost five million customers, but I think there is still plenty of room for the business to…

Read more »

Businesswoman with a pleased smile reading on her laptop at a desk in the office with a look of satisfaction.
Technology Shares

Pro Medicus lands $23m St. Luke's Health System imaging contract

St. Luke’s Health System is Idaho’s largest private employer and not-for-profit healthcare provider.

Read more »