2 ASX Tech Growth Stocks Flying Under the Radar
When people think of the ASX tech sector, names like WiseTech, Xero, or Altium often dominate the headlines. But beneath these giants, a new generation of smaller, focused tech players are building quiet but durable advantages in niche markets. Two standout examples are Audinate Group (ASX: AD8) and Ai-Media Technologies (ASX: AIM) — companies operating at the intersection of audio/video technology and AI-driven accessibility.
They may not be household names yet, but both are laying the groundwork for sustained, software-led growth in industries seeing long-term demand tailwinds. Let’s explore why these two underrated stocks might deserve a closer look.
Audinate (ASX: AD8) — The Dante Standard and a Platform Play
What they do:
Audinate is the creator of Dante, a leading networking protocol that transmits professional-quality audio — and now video — over standard IP networks. It’s the “invisible layer” behind countless sound systems in concert venues, studios, conference centers, and even broadcast setups worldwide.
Instead of selling hardware, Audinate licenses its software and chips to equipment manufacturers (OEMs). That means Dante is built into mixers, cameras, amplifiers, and microphones from hundreds of brands — giving Audinate a recurring and scalable business model.
FY25 snapshot:
FY25 was a transitional year for the company. Revenue and earnings came in line with expectations after a soft patch caused by inventory adjustments in the broader AV industry. However, management highlighted a rebound in second-half performance, supported by strong demand for new products like Dante Director and the Iris platform, which help manage and optimize AV networks.
Why it matters:
Dante has become the de facto global standard in professional audio networking, with millions of devices already in the field. That massive installed base provides a long-term growth runway. Every time an OEM designs a new Dante-enabled product, Audinate earns more licensing fees and software revenue.
The company is also moving beyond pure licensing into platform-based software services, aiming to increase recurring revenue and lift profit margins. Over time, this shift from hardware-linked sales to software subscriptions could transform Audinate’s earnings quality and stability.
Risks and what to watch:
While its long-term prospects are strong, Audinate is not immune to industry cycles. When OEMs reduce inventory or delay new product launches, short-term sales can dip. Investors should monitor OEM design wins, Dante software adoption, and cash flow margins to gauge whether its platform transition is delivering the expected benefits.
Ai-Media (ASX: AIM) — Accessibility + AI = Scalable Services
What they do:
Ai-Media is a pioneer in live and recorded captioning, transcription, and speech-to-text services. The company works with broadcasters, corporates, educators, and event providers that need accurate, accessible media content — a demand increasingly driven by regulation and audience inclusivity goals.
Over the past few years, Ai-Media has been integrating artificial intelligence into its products, such as the LEXI automatic captioning platform, which delivers real-time captions with high accuracy and minimal human input.
FY25 snapshot:
In FY25, Ai-Media reported revenue of $64.9 million, a modest decline from the prior year, alongside a small net loss. However, the company made clear progress toward improving margins, with technology revenue (from its AI-driven platforms) growing faster than human-based services.
Management expects this technology segment to make up an even greater share of total revenue by late 2025, marking a clear pivot toward higher-margin, recurring income.
Why it matters:
The company operates at the crossroads of two powerful trends — the global push for accessibility and the rise of AI in media production. Governments, schools, and corporations are increasingly required to provide captions and transcripts for their content, while AI now makes it affordable and scalable.
If Ai-Media can successfully convert more of its customers from human captioning to automated AI platforms, its profitability could scale rapidly without major cost increases. That makes the coming year pivotal for its long-term story.
Risks and what to watch:
Competition is fierce. Speech recognition and captioning are hot markets attracting global players, from Google to small AI startups. Ai-Media’s success depends on accuracy, latency, multilingual capabilities, and retaining key customers. Investors should track metrics like technology revenue share, gross margins, and new enterprise contracts to assess whether its transformation is gaining traction.
Why These Stocks Are Flying Under the Radar
Despite strong fundamentals, neither stock commands the market attention that larger tech players do. Their modest market capitalizations and niche business models make them less visible to general investors — yet that’s often where long-term opportunities emerge.
- Audinate has a market cap under $1.5 billion and trades at a valuation that could re-rate quickly if the Dante platform expands deeper into video networking.
- Ai-Media, worth under $200 million, could see earnings inflect if automated captioning scales faster than expected.
Both companies operate with tangible, growing demand and are pursuing platform models that favor recurring revenue — a powerful driver of valuation over time.
Final Thought — Quiet Growth, Clear Potential
Not every tech winner needs to dominate headlines. Audinate and Ai-Media are two examples of Australian innovation quietly building competitive moats in growing global niches.
- Audinate’s Dante technology has become the language of professional AV, and its push into software could deliver compounding returns.
- Ai-Media’s AI-powered accessibility tools align perfectly with global trends toward inclusion, regulation, and digital transformation.
Neither stock is without risk, but both offer asymmetric upside — the potential for significant growth if management executes well, with the cushion of real-world demand.
For investors looking beyond the megacaps, these two under-the-radar ASX tech names might just be worth turning up the volume on.
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