2 small-cap ASX tech shares rocketing on big US news

The junior ASX tech shares are enjoying a big lift following positive developments in the US.

| More on:
A boy stands firm on a rocky cliff holding a rocket in each hand and looking up toward the sky, anticipating flying into space.

Image source: Getty Images

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

The All Ordinaries Index (ASX: XAO) is up 0.54% on Wednesday, with two small-cap ASX tech shares racing ahead of those gains.

Investors are reacting positively to separate announcements from both tech companies relating to developments in the United States.

Here's what's happening.

ASX tech share leaps on patent grant

The Archer Materials Ltd (ASX: AXE) share price was up 10.5% in late morning trade on Wednesday. The semiconductor company's shares closed yesterday at 43 cents and are currently changing hands at 46 cents apiece.

Atop the broader boost in sentiment for technology stocks around the globe delivered by exuberance for the sector by returning US President Donald Trump, the ASX tech share is attracting investor interest after reporting it was granted a key patent in the US.

The patent relates to Archer's Biochip technology and will protect the company's intellectual property (IP) rights in the US.

Archer, which is working to advance the quantum technology and medical diagnostics industries, said the patent will enable it to explore opportunities to work with medical device partners in the world's biggest economy and largest medical diagnostics market.

The patent protects the design and work done on the graphene complexes and their compositions that can be used in the Biochip.

Commenting on the grant of the US patent that's boosting the ASX tech share today, Archer executive chair Greg English said, "The Archer Biochip team has made great progress in the development and the design of the graphene biosensing technology, and this US patent protects their hard work."

English added:

The grant of the US patent is a critical milestone for the Biochip program and bolsters our expanding intellectual property portfolio and provides enhanced protection for our Biochip program aimed at detecting potassium in blood.

The US represents a key market for the sale of our Biochip in time, due to the size of the market and the rate of chronic kidney disease in the country.

ASX small-cap stock inks deal with world's biggest telco

Which brings us to the second ASX tech share rocketing higher on big US news today, Etherstack PLC (ASX: ESK).

Shares in the thinly traded, small-cap wireless technology company closed yesterday trading for 27.5 cents each. At time of writing, shares are trading for 29 cents apiece, up 5.5%.

Etherstack shares are catching tailwinds after the company reported that it has entered a new contract with AT&T Inc (NYSE: T)

The US$1.2 million contract will see Etherstack supply wireless network equipment and associated services to the world's largest telecommunications carrier. Etherstack has been collaborating on AT&T's FirstNet project.

Commenting on the contract win sending the ASX tech stock soaring today, Etherstack CEO David Deacon said:

This direct award with AT&T for one of our innovative products in a rapidly evolving public communications product area is testament to Etherstack's capability in building the best products for the world's largest telco operators and switch vendors.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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

a woman holds a facebook like thumbs up sign high above her head. She has a very happy smile on her face.
Technology Shares

Bell Potter just put a buy rating on this ASX 200 tech stock

The broker has very good things to say about this growing company.

Read more »

A woman researcher holds a finger up in happiness as if making the 'number one' sign with a graphic of technological data and an orb emanating from her finger while fellow researchers work in the background.
Technology Shares

2 exciting ASX 200 tech shares to buy in February

Analysts are tipping these tech stocks as buys this month. Let's see what they are saying about them.

Read more »

Accountant woman counting an Australian money and using calculator for calculating dividend yield.
Technology Shares

Which ASX 200 technology stock will pay the best dividend yield in 2025?

Earnings season is underway and dividend announcements are on investors' minds.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX 200 technology stocks led the market with a 1.99% rise while the benchmark index slipped 0.24%.

Read more »

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Technology Shares

2 ASX tech stocks to buy during an anticipated 15% to 20% sector pullback in 2025

Expert reveals 2 of his favourite tech stocks and at what prices we should buy them during a dip.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Technology Shares

Life360 shares: A generational opportunity to get rich?

I think the Life360 share price could more than double again in the year ahead.

Read more »

a woman sitting at a desk checks an old fashioned calendar resting against her wall as she sits with documents in front of her.
Technology Shares

Own WiseTech shares? You need to know about these dates in 2025

Put these dates in your calendar.

Read more »

a young child wearing a cardigan and thick black glasses places his hand on a nearly rounded object and his hair lifts at right angles to his head thanks to static electricity.
Technology Shares

Up 223% in a year, why this ASX 200 tech stock could keep surging higher in 2025

A leading expert expects the ASX 200 tech company to provide strong 2025 earnings guidance.

Read more »