Samso AI Radar - Weekly Review
- Noel Ong
- 1 day ago
- 8 min read
Uncovering Promising Australian Companies on the ASX with Rising Global Appeal and Harnessing AI
If you're an investor in the Australian Stock Market, you may be curious about technology's growing impact on traditional industries. Artificial intelligence (AI) is revolutionizing how businesses operate and how investors assess potential returns. My learning curve in the space of AI is now my favourite topic of conversation. In the space of a month, my curiosity about this business has evolved from a casual conversation to one that is generating a passion for the business.
This passion is the focus of focusing on a select group of companies on the Australian Stock Exchange (ASX) that are leveraging AI while maintaining a handsome market capitalisation. These firms have shown significant share price increases in the past six months and are gaining attention from investors worldwide. While still being in the space for retail investors.
Why AI Matters in Investing
AI technology is swiftly transforming various sectors by automating tasks, boosting analytics, and enhancing customer experiences. Investors who recognize companies leveraging AI can position themselves advantageously in an ever-evolving market.
I did some research on the facts some five years ago to see the rate at which AI is now being structured into businesses, and it's interesting to see the modest and some less modest thinking back at that time.
For instance, a company implementing AI-driven solutions can improve operational efficiency by up to 50%, a statistic that underscores the power of technology in driving growth. In 2021, a McKinsey report found that companies that fully implement AI across business functions can boost productivity by up to 40%–50% (The state of AI in 2021).
The report detailed that AI applications in operations, supply chain, and customer service were among the most impactful, with automation and decision-making tools leading to substantial cost and time savings.
Although the report is four years old, it is good to see the thoughts on the cost and revenue equation then and what they would be now in 2025.
In 2019, there was the PwC Global Artificial Intelligence Study, which found that AI could contribute up to $15.7 trillion to the global economy by 2030, largely through productivity and efficiency improvements (Figure 1). The main aspect of the report proposed that labour productivity improvements alone are expected to account for 45% of total economic gains from AI (source: PwC Report – Sizing the Prize).
Similarly, an Accenture Report in 2017 released a paper, "Artificial Intelligence Has Potential to Increase Corporate Profitability in 16 Industries by an Average of 38 Percent by 2035" in support of the reasons why AI should be high on investors' watch list.
Finally, in 2022, IBM stated that 35% of companies were already using AI (Figure 2), and those that implemented AI solutions in business workflows reported an average process efficiency gain of 30%–50% (IBM Global AI Adoption Index 2022).
Spotting undervalued companies poised for significant growth can be key, especially on the ASX. Often, smaller firms wield the potential to outperform larger competitors thanks to innovative AI strategies, making them an attractive investment option.
Company Spotlight: Data#3 Limited (ASX: DTL)
One standout company is Data#3 Limited (ASX: DTL). This IT services and solutions provider has successfully integrated AI into its offerings, enhancing software performance and data management. Over the past six months, Data#3's share price has increased by approximately 30%, a reflection of its AI focus and market demand (Figure 3).
Their use of AI analytics tools allows Data#3 to offer customized solutions to clients, further solidifying their competitive edge. For example, by implementing AI in their data analysis processes, Data#3 has improved project delivery times by 20%, showcasing their ability to adapt and thrive in a tech-driven marketplace.
The market capitalisation of DTL at AUD $1.15B and a share price chart like Figure 3 instil confidence that the business is accepted. Like all successful businesses, it has been a long journey. Is this a stock for retail investors? Has it lost its appeal to those who are seeking capital appreciation?
As Data#3 continues to capitalize on AI relevance, it remains an attractive choice for investors seeking companies with solid technological foundations.
Company Highlight: BrainChip Holdings Ltd (ASX: BRN)
Another notable player is BrainChip Holdings Ltd (ASX: BRN), a leader in AI hardware with its neuromorphic computing platform. This innovative technology simulates the human brain’s architecture, providing efficient AI solutions. BrainChip’s stock has surged by more than 40% in the past six months, indicating strong market interest both locally and internationally.
The market appeal for BRN is marketedly different from DTL, as it is clearly shown in Figure 4, however, I still think that the business is worth having a look at. With a market capitalisation of AUD $455M, BRN is no slouch in terms of its place on the ASX.
For the average investor, one must remember that not all business markets move at the same rate, and the potential of AI, in my opinion, has not really been understood as yet. The adoption rate is still just being tested, and in my discussion with people, industries are still "working it out".
Looking at the events for BRN over the last 12 months, it does look like the company is winning in some respects, but as the market understanding continues, I will not be surprised that the "punters" will help maintain BRN's visibility.
The ongoing advancements in their neuromorphic chips position BrainChip as a disruptive force in AI, appealing to various industries ranging from automotive to smart devices. For instance, their technology is being utilized in advanced driver-assistance systems, which have increased in demand as the automotive sector shifts towards autonomy.
By prioritizing AI innovation, BrainChip is establishing a prominent niche in the competitive landscape. Their growth trajectory suggests a bright future as they continue to strengthen their market position.
Emerging Star: Appen Limited (ASX: APX)
Appen Limited (ASX: APX) deserves mention as a major player specializing in AI data. They enhance machine learning datasets using crowd-sourced data collection and high-quality annotation services. In the last six months, Appen’s share price has risen by about 25%, fueled by contracts with major tech firms seeking to refine their AI systems.
I am just learning about APX, and looking at Figure 5, I cannot speak for the past, and I am sure readers can easily ask ChatGPT to summarise the past. Appen Limited has a market capitalisation of AUD $303M and in the last 12 months has had a volatile time (Figure 7). The share price has gone from less than AUD $0.50 to a high of just over AUD $3.00 to a close of AUD $1.15 at the time of writing (7th June 2025).
The demand for accurate AI data has surged, and Appen's established partnerships with global enterprises position it well for future growth. Their data services have become essential for companies like Microsoft and Facebook, who rely on Appen for high-quality training data to improve their AI applications.
As companies worldwide increasingly seek reliable data for AI development, Appen is likely to continue gaining traction, making it a worthwhile consideration for investors.
Convincing Market Performance
These companies showcase rising share prices along with the operational success of AI technologies. Their proactive approaches and strategic positions illustrate how smaller firms can outperform larger ones in stock performance.
The big question for me is whether the growing global interest in AI and the equity aspect of AI companies in the US would translate to similar excitement on the ASX. The ongoing research for Samso is now to expand our coverage into areas that the changing the way we work. An intriguing thought that I have recently had is that with over three decades working in the same industry and seeing innovation within the industry, the outcome of the mineral resource industry is the same; we mine the metals that we explore for in the beginning.
The other industries are creating products that are making or adapting to the changes in global innovation. I just feel that the innovation in technology is the top of the circle of importance in global businesses.
Key Insights
Investing in Australia’s AI landscape presents a unique chance to be part of a transformative technological era – one that could redefine industries and lead to potential substantial financial gains. With these trends unfolding, one may think that the future of investment looks intelligently promising, however, I would pose the question, is the current path of AI the one that will eventually be the real case scenario in 5 years or 10 years time.
As I put forward the three ASX companies utilising AI, Data#3, BrainChip, and Appen, are not arbitrary names in a stock exchange; they are currently the forward-thinking companies that the market feels have a place in the future business of technology.
For anyone assessing investment in the Australian market, particularly in AI, these companies provide a glimpse into a thrilling new frontier that aligns with global investing trends. As always, conducting thorough research and analyzing market dynamics is essential before making any commitments.
Hence, with understanding comes research. Research, in my mind, takes time and a lot of pondering of Ifs and What Ifs. Here at Samso, we look at the companies on the ASX and we ask those questions. For those of us who have the wisdom of time, we have seen technology go from mainstream to extinction several times, such as VCR to Laser Disk, Cassette tape (large to small formats), DVD and then to Netflix.
Our content is well-researched and is only created if I see merit in discussing the company's story. Investors can view our three main products in Coffee with Samso, Samso News and Samso Insights.
There may be numerous paths to success in investing, but the common thread among successful individuals is that they remain committed to making informed decisions. Equip yourself with the right knowledge and tools, and you will be well on your way to achieving your financial goals.
Most importantly, investors need to be absolutely diligent in understanding their own risk-reward tolerance and capabilities. Never bite off more than you can chew is my parting comment. As they say, Rome was not built in a day, and the Great Wall is a great phenomenon because it took centuries to build.
Happy investing—and as always, do your own research.
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Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints.
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