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The agreement – signed between the university and Pro Medicus’ U.S. subsidiary Visage Imaging, Inc. – will provide a framework through which the two parties will collaborate on the development and commercialisation of the platform, looking specifically into its artificial intelligence capabilities.

It will also build on a relationship already established with UCSF through an existing agreement related to Pro Medicus’ Visage 7 Viewer product.

Visage Imaging Global CTO Malte Westerhoff said the partnership around Visage AI Accelerator was a very important milestone.

“Our AI Accelerator program was designed to closely align Visage’s engineering and product development capability with clinical research partners such as UCSF who have a depth of clinical knowledge and extensive research expertise,” he said.

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Mr Westerhoff continued: “It provides a unique set of tools for data de-identification, collection, curation, analysis and ‘path-to-production’ in research projects bringing the efficiency and speed of Visage technology to research, resulting in a unified link between the two domains.”

PME shares last traded at $210.32 – a fall of 1.22% since the market opened.

Join the discussion: See what HotCopper users are saying about Pro Medicus and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

The implied offer price of that deal is $0.48cps and the Board is solidly backing it.

It is a premium to its current price of around 17cps, albeit still well below where it sat during COVID.

But the Board has firmly outlined why it believes BTH shareholders should vote in approval of the offer at its upcoming AGM on Friday 29 November at 9.30am AEDT.

(Proxy forms are available on the company’s Investors portal on its website.) 

In short: If all goes ahead, Investcorp AI Acquisition Corp will take Bigtincan Holdings to Wall Street, where it will list on the NASDAQ. It’ll inject US$12.5 million and take a 20 per cent stake in the company.

There’s far more enthusiasm for tech stocks on Wall Street than there is on the ASX, where investors are more interested in banks and mines. 

There is a competing, but non-binding indicative offer from a US private equity firm called Vector Capital. Its takeover offer for Bigtincan has been at $0.22cps – clearly below Investcorp’s implied price of 48cps. 

And here’s the other thing about private equity: those firms buy struggling companies, oftentimes victim of circumstance (like Bigtincan’s volatility in the face of macro trends it can’t control), and then later sell them on.

Shareholders might be able to score 22cps for their shares now and get out, but then they’ll be gone forever.

A listing on Wall Street’s NASDAQ index could see those shares command a price far higher than A$0.22cps in the coming months and years. 

But let’s step back. 

For those unfamiliar, Bigtincan produces enterprise software. In other words, computer programs that help businesses manage everything from sales to customer enquiries.

And Bigtincan considers itself a global leader in that field as well as in its adoption of AI – global enough to command considerable attention from Wall Street. 

Its client base underscores that reputation, as CEO and cofounder David Keane told HotCopper.

“We have amazing customers around the world – organisations like Google, Nike, Sephora, AT&T and many others, and these organisations are proving that Bigtincan’s technology and approach to sales enablement really works,” Keane said. 

That doesn’t address its onshore customers, either. 

Bigtincan provides software to the Federal Australian Department of Defence (DoD) and Seek Ltd (ASX:SEK); zooming back out to the global level, it also provides services to GUESS, ThermoFisher, Bayer, and Novo Nordisk.

There is, after all, a reason the company shot to record highs during the COVID years of around $1.36/sh. 

And it could get back there, given that tech companies enjoy far more liquidity – and confidence – from Wall Street investors, both institutional and retail. 

“The Board believes that this move to NASDAQ with the support of Investcorp offers Bigtincan’s shareholders an opportunity to achieve a potentially significant increase in value, and, to build upon the work this company has done over the last few years to build what is undeniably a global leader,” Keane explained. 

Consider the company’s recent forays into AI – a trend that Wall Street is hungry for. (Just look at OpenAI’s increasingly stratospheric valuations.) 

“When you add [our existing strengths] to the impacts of the AI technologies that Bigtincan has been building we see a significant opportunity to continue to bring the smartest people in the world into our team to grow value for all,” he said.

“Investcorp have talked about expanding our investments in Hobart, Tasmania, to grow an AI Technology Centre there bringing new well paid jobs to Australia – and that vote of confidence from one of the world’s largest asset managers is wonderful for Australia.

“Really speaking, this is about providing a chance for shareholders to play again at a new level.”

In recent history, Australian tech stocks broadly have been subjected to a re-rating epidemic of their own, driven by the end of that other great epidemic – COVID-19. 

As at 3pm Sydney time on Thursday 14 November, Bigtincan is trading at just 17.5cps – which Keane states, in Investcorp’s view, is firmly below its intrinsic value. 

As I’ve already mentioned, in August of 2021, it traded at $1.36/sh – and there’s a clear thread painting the reason it got there. 

Hark your mind back to the early years of COVID, where there were microchip shortages for automakers as tech companies fought for the assets to boost sales of computers and hardware needed to run Zoom. 

Everybody was working from home and no business, really, was doing bricks and mortar or face-to-face contact. 

It was a very good time to be in tech – especially for Bigtincan, whose software ultimately allowed companies to pivot into remote operations. 

However, Keane cites that Australian investors may be fickle.

“It’s one of the challenges of Australia – the re-rating of tech stocks in Australia over the last few years has been really tough for our shareholders, tough for many shareholders, and I think that some of the institutions really don’t know how to react to that,” Keane stated. 

While the S&P500 has been uplifted by 7 megacap tech companies in recent history, Australia hasn’t seen such a boon for its IT stocks. We’ve got Wisetech (ASX:WTC), Xero Ltd (ASX:XRO) and NEXTDC (ASX:NXT) still valued in the tens of billions, but that’s about it. 

For retail shareholders with less than 5,000 BTH shares in their portfolio, there has been made a concession from Investcorp that could see those holders cash out for 23.5cps, or, they can pick up an international trading account – and no shortage of services offer that.

So smaller shareholders can absolutely expose themselves to the liquidity that a NASDAQ listing is sure to bring. 

“The bottom line is, any shareholder, all they have to do to get liquidity once [we] move to NASDAQ is to have an overseas trading account. It’s just like you’re holding Tesla shares,” Keane told HotCopper.

Obviously, the CEO and cofounder of Bigtincan would want to expose the company to Wall Street tier volumes.

And of courseInvestcorp, the company that wants to buy Bigtincan for cheap, would present its offer to be a good deal.

But it’s not just those parties voting yes. So too is Bigtincan T20 constituent Ingalls & Snyder, a NY-based investment manager and long-term shareholder. 

“The Nasdaq is the global home of innovative technology companies. This change in listing may lower Bigtincan’s cost of capital, be more attractive for acquiring and retaining talent and serves as a strong reference point for acquiring customers on a global basis,” Ingalls & Snyder wrote in a recent public letter favouring the deal. 

As stated earlier, BTH has received a non-binding acquisition proposal from Vector Capital at a price of A$0.22/share.

“This valuation is substantially below BTH’s US peer group and does not represent the quality of the business or its future growth potential,” Ingalls & Snyder said. 

What happens next lies with BTH shareholders. Keane hopes they’ll agree that a move to the NASDAQ is the best opportunity on the table.

BTH last traded at 17.5cps.

Join the discussion: See what HotCopper users are saying about Bigtincan Holdings and be part of the conversations that move the markets.

Disclaimer: Bigtincan Holdings was a client of HotCopper at the time this piece was written.

The contract was for a repeat order of the C-UxS systems – which target multi-domain aerial, ground and maritime surface drones – with the product delivery and cash receipt both factored into for completion by the end of 2024.

Droneshield director of Business Development Tom Branstetter said the contract was evidence of client confidence in the company’s suite of drone defense products.

“DroneShield’s ability to rapidly deliver high-performance, lifesaving technology at this scale sets us apart in the counter-UAS industry, empowering our clients with cutting-edge solutions precisely when they need it,” he said.

At 10:49 AEDT, shares in Droneshield were trading at $1.40 – a rise of 4.89% since the market opened.

Join the discussion: See what HotCopper users are saying about Droneshield and be part of the conversations that move the markets.

Using the moomoo share-trading platform’s heat map feature we can see just how positive investors are toward the artificial intelligence and related sectors: it reveals 77% growth in semiconductors (year to July 12), 34% growth for internet stocks and 59% in computer hardware for the US market.

The fourth industrial revolution, powered by AI, is just getting started. So, if you haven’t invested yet, you have not missed the boat.

Case in point, NVIDIA recently inked partnerships with companies such as Novo Nordisk, J&J and GE Healthcare. These collaborations will have a material impact on NVIDIA’s revenue later this year and next, which is very exciting for shareholders. Novo Nordisk will build a supercomputer using NVIDIA chips to discover new medicines and treatments. It will be Denmark’s first supercomputer. This illustrates not only demand from new sectors, but new geographies.

So, considering that, and predictions that inflation/interest rates will stay higher for longer, sectors set to benefit from the AI pivot include:

Investors may be best served favouring quality stocks in the AI space, companies that can sustain higher interest rates and grow earnings and profits. These companies have high, recurring cashflows, quality clients, and low debt-to-equity.

How do you find them? Use the moomoo app to check earnings per share and revenue estimates (as well as other financial indicators), as it is earnings and earnings upgrades that drive share price growth.

With the price at record high, uranium is a sector of particular interest, with key investments including:

This sector is especially volatile, so treat your investments with caution and consider using moomoo’s sentiment indicator and charts to plot your entry and exit.

Jessica Amir is one of Australia’s leading market strategists and commentators, appearing on TV, radio and online and print news to share her views on macroeconomics and investments. She works as a market strategist with moomoo Australia.

The moomoo share-trading platform has 22 million users worldwide and supports Australian investors of all backgrounds and experience levels. Our mission is to eliminate barriers to investing and equip users with the tools they need to achieve their goals. We are Money Magazine‘s online broker rising star gold winner for 2024.

Disclaimer: In Australia, the financial services in the moomoo app are provided by Moomoo Securities Australia Ltd, ABN 51 095 920 648, Australia Financial Services License No. 224663. Any investment carries risks. Please read the Financial Services Guide and other disclosure documents before you decide to use our Financial Services. For details, please visit our official website www.moomoo.com/au.

The market data and information presented in this article are general in nature and did not take into account your objectives, situations or needs. Consider the appropriateness of the information in light of your personal circumstances before making investment decisions, and where necessary, consult a licensed financial adviser. Historical data is not indicative of future performance.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

Of course, in mid-2024, NVIDIA is no longer just a microchip company anymore – it’s the market embodiment of Artificial Intelligence (AI). In the minds of traders everywhere, uptown or at-home, the AI theme has become inseparable from the stock NVIDIA itself.

And if you need proof that association with AI alone is enough to drive serious returns on the stock market, consider this: NVIDIA has, as of Friday 7 June, overtaken iPhone maker Apple as the USA’s second most valuable company.

Now, NVIDIA trails only behind Microsoft. 

And it’s worth remembering the Mag7 tech stocks are still largely the most important companies driving up the S&P 500 and the NASDAQ, given their combined value comes in at a somewhat incomprehensible US$15 trillion.

That’s half the size of all remaining 493 companies on the S&P 500 index.

Such concentrations of value (and power) among such a small cohort of companies has never been seen like this before. Where once the US was run by oil giants, it’s now run by tech giants.

The introduction of the household computer in the mid-1980’s was the first major revolutionary element behind this dynamic. 

After that, it was a scramble to get mobile phones web-connected, and once that became normalised, the touchscreen prevailed as the most user-friendly interface. 

In the space of around 30 years, the structure of financial power has permanently changed the world. The rapid spread of Large Language Models (LLMs) – pushed heavily by OpenAI – is just the latest step in an overarching tech story defining the 2020’s.

In the 1920’s, it was the middle class being able to afford refrigeration that changed the developed world – and a lot of people are banking on AI being of equal importance. 

Time will tell. But in February of 2024 – which also feels like ancient history at this point, given how fast and how deep the AI hype has penetrated – Goldman Sachs released an analysis showing mention of the term AI was on the increase in US corporate earnings calls. 

That trend has continued through the year, with seemingly every company jumping aboard the AI train. 

Sometimes this can come across as convincing, and at other times it doesn’t. 

Even Taco Bell has tried to frame itself as a company with exposure to the AI thematic. And to be fair to Taco Bell, it was actually an early mover in this space. It’s been talking about AI since before COVID.

Consider also that NVIDIA’s stellar performance has helped push up the entire basket of stocks contained in an ETF that exclusively deals with microchips – VanEck’s semiconductor ETF (semiconductors and microchips are, for all purposes, the same thing.) 

As of the time of writing, that ETF basket has produced +77.4% returns over the last year. This article isn’t intended to be an ad for VanEck, but those returns do indicate a broad market enthusiasm for AI exposure.

And so what about AI and the ASX? 

Through the year, there’s been no shortage of companies spruiking exposure to the AI theme like their counterparts to the US.

But unlike the US markets, where you mention “AI” and the names “NVIDIA” and “Microsoft” come to mind, the bourse down under is less teeming with ripe fruit.

Data centre giant NextDC (ASX:NXT) is the largest, most well-known, and likely most obvious stock in the Australian AI space.

The company operates 13 data centres across Australia, NZ, Malaysia, and Japan, with that number to grow further. 

NextDC has teamed up with Microsoft in the past to bring data centre infrastructure to remote parts of Australia, including the engine room of the national economy – WA’s Pilbara region.

But its fundamental leverage in the AI space is that NextDC has the computing power needed to run the power-hungry Large Language Models (LLMs) which have come to form our understanding of what AI actually is – even if we are really just anthropomorphising some very high quality chatbots. 

Whether or not we’re overestimating how powerful LLM products really are is a matter of ongoing debate (though it wasn’t enough to stop NextDC from redesigning a webpage describing itself as an “AI-Ready” company.)

While the “core” AI stocks driving the market – most of them within the Mag7 cohort – are all in the US, Australia isn’t unfamiliar with the tech space. After all, we’re the country that invented wi-fi.

Global law firm Dentons this year wrote that Australia is still figuring out what industries AI poses the most risk to users, with potential consequences of such risks equally vague. 

In other words: it’s early days, and nobody really knows where the AI thematic will go from here, at least in the Australian context.

Research from UNSW in early 2024 described Australians as “concerned about AI.” The Australian government has already released a report the result of public consultation about the ‘responsible use’ of AI. 

(Notably, nearly 80% of respondents were from business and other entities, with members of the public making up the rest.)

Australians are well familiar with AI, and according to many surveys, most of us have played around with an LLM at least once. 

It’s in our homes, and it’s now on our phones – or soon it will be, thanks to a deal between OpenAI and Apple which will see the ChatGPT app pre-installed onto iPhones.

But for the average at-home investor, NextDC could very well be too expensive a stock. What other companies are in the AI space in Australia? 

Most of the companies on this list are not ‘artificial intelligence companies’ per se, but instead seek to leverage software capable of automating data analysis and list-sorting to enhance operations and automate wherever possible, thus meaning less CapEx, and better returns for shareholders (all cards in order.)

But this is equally true of many US companies turning to AI, and so the distinction bears little relevance to thematic investors.

Stock price information correct as at lunchtime on Tuesday June 11.

Shekel Brainweigh (ASX:SBW) is an ASX-listed company developing a package of hardware and supporting software to automate the bricks and mortar shopping experience.

SBW envisions a world without the burden of needing to pay expensive labour costs in stores which could be remotely operated – and to this end, loss (theft) prevention is a staple value proposition behind the company’s tech.

AI comes into it through the lens of automated data analysis. In other words, Shekel Brainweigh’s tech can be installed into trolleys and shelves that detect differences in weight to ascertain what product was bought and how many units.

This way, users would not be able to put one item in a trolley and then scan it through as something else. Many popular anecdotes talk about putting through expensive items as ‘brown onions’ – and it’s these sorts of practices Shekel Brainweigh is using AI to help prevent.

Ai-Media Technologies (ASX:AIM) is leveraging one of the more impressive capabilities of LLMs like ChatGPT as seen in the current era of the AI Boom – translation capability.

Among the holy grail products AI could produce, a translation app that allows two speakers with different language to converse in real-time is definitely among the most shining examples.

Ai-Media Tech is also developing AI that can automatically caption videos. While this software already exists in an established state on platforms like YouTube, the Australian market specifically has lacked specialists domiciled onshore.

The company also has an ESG focus – it was co-founded in 2003 by a member of the deaf community. The company intends to boost media accessibility, as well as exploit AI.

Unith Limited (ASX:UNT) is another company developing AI in the flavour of LLM ‘chatbots.’ 

Unith’s unique proposition to the market is that it can sell hyper-realistic 3D ‘digital human’ avatars to companies for use on their own second-party websites, where users can interact with the human-like LLMs to inquire about anything from sales prices to nearby hospitals.

The company is also developing an application that lets a user talk to the avatars, verbally, through their phone or laptop. 

Once refined to satisfaction, the digital humans can respond in real-time to user concerns and questions without needing to actually pay the labour costs of staffers to do so.

Leveraging previous tech thematics, Unith operates on a SaaS basis, providing regular revenues.

NextDC Limited (ASX:NXT), already well covered in this article and one of the biggest tech players on the ASX that isn’t Megaport (ASX:MP1), is one of Australia’s most recognisable ASX-listed brands.

This is because of their architecturally eye-grabbing data centres spotted around each Australian capital. But the company is also well-known for another reason – its exposure to the AI scene.

Notably, NextDC was one Australian stock recently backed by Macquarie as boasting a bull case for exposure to AI growth in the coming years.

NextDC, a data centre giant, has the hardware and processing power needed to host AI products like LLMs and other high-powered software packages. Think about the requirements of a supercomputer – that’s the scale NextDC can handle.

The final company on this list, BlinkLab (ASX:BB1) is a company leveraging AI where possible in the development of software capable of using a mobile phone to track user eye movements.

Hard scientific evidence that eye movement behaviours can reliably predict and detect mental health conditions – particularly when it comes to autism in children.

BlinkLab’s journey through the AI thematic is an interesting one, given its brandishing fairly recent science as its main value proposition in the diagnosis of a condition where rates are on the rise. 

Of course, this is also what makes it a value proposition in the first place. BlinkLab’s usage of AI will hinge on its ability to gear software to automate the analysis of large sets of data – otherwise known as the ‘Big Data’ thematic of yesteryear. 

In many ways, the current AI boom is an extension of that same big data theme.

After all, what is a LLM? 

AI has been integrated into the day-to-day operations of many sectors. Legal, healthcare, education, banking, and journalism are already finding it useful.

The main question that unites everyone at the moment is whether some sectors will start replacing human knowledge and traditional resources with AI.

The Market Herald’s Fouad Haidar spoke with business growth expert Jeff Pedowitz, who has just released a book titled ‘AI Revenue Architect’, and international tech expert and Unith (UNT) CEO, Idan Schmorak.

They delve into this fascinating human invention: What it means for companies and future operations, both locally and globally, and most importantly, what it means for investors.