The AI rally on the stock market has so far been primarily associated with NVIDIA. But a significantly smaller company is increasingly becoming the focus of investors.
• Little-known AI stock competes with NVIDIA
• Sales quadrupled from 2019 to 2025
• Analysts see further high growth potential
The rally around artificial intelligence has boosted numerous tech stocks in recent years. Chip giant NVIDIA in particular is considered a big winner of the AI boom. But some analysts also see smaller companies with significantly more upside potential. One stock that is being mentioned more and more frequently is Innodata. The company is still relatively unknown to many investors – although the price has already multiplied in recent years.
Innodata: From an inconspicuous service provider to an AI profiteer
Innodata was founded in 1988 and was for a long time a rather unspectacular service provider for content.Digitalizationdigital publishing and data enrichment. Accordingly, growth remained manageable for many years.
The strategic tipping point intensified from the late 2010s (especially around 2019). At that time, the company was building out specialized AI data engineering services that annotate and prepare large amounts of high-quality data.
In practice, tech companies don’t spend a lot of their time developing AI algorithms themselves. According to the financial portal The Motley Fool, a lot of the work goes into preparing the training data. “Tech companies often spent around 80% of their time annotating and preparing the data for their AI projects,” the experts write. Only about 20 percent of the time would actually be used to train the AI.
According to experts, outsourcing this work to specialized providers is more efficient for many companies. This is where Innodata comes in.
Customers from the AI elite
According to the company, at least five of the so-called “Magnificent Seven” are already using Innodata’s services to clean and prepare data for AI projects. The effect is clearly visible in the business figures. The company’s revenue increased from $55.9 million in 2019 to $251.7 million in 2025 – more than quadrupling in just a few years. Profitability also improves. Adjusted EBITDA became positive again in 2023, tripled in 2024 and reached around $57.9 million in 2025, an increase of 68 percent.
At the end of 2025, the company had approximately $82.2 million in cash and short-term investments, positive operating cash flow and relatively low debt. This development is also reflected on the stock market: In the past three years, shares listed on the NASDAQ have risen by more than 450 percent. However, the picture has changed since the beginning of the year: there is a loss of over 19 percent – probably driven by increasing AI concerns in the market (as of March 26, 2026).
Innodata CEO and analysts continue to see strong growth
Despite the share price’s downward trend since the beginning of the year, many market observers believe that the expansion is far from over. According to analyst forecasts referenced by The Motley Fool, Innodata’s revenue and adjusted EBITDA could grow by around 31 percent and 19 percent annually between 2025 and 2027.
Innodata CEO Jack Abuhoff is also extremely optimistic. “We believe we are entering 2026 with exceptional momentum. Demand in frontier model training, agentic AI and physical AI is accelerating, and we believe our role is evolving from a data provider to a strategic lifecycle partner for some of the world’s most advanced AI initiatives,” he is quoted as saying in the 2025 results press release. “Based on current forecasts, we expect revenue growth of approximately 35% or more in 2026, with potential upside as programs scale,” Abuhoff continued.
This combination of growth and stable funding could potentially even make Innodata an acquisition target for larger AI infrastructure companies, according to The Motley Fool.
More potential than NVIDIA stock?
Compared to tech heavyweights like NVIDIA, Innodata is a very small company. However, this is exactly where some investors see the opportunity: While giants valued in the trillions often grow more slowly, smaller AI specialists can scale much more quickly.
However, risks remain. Innodata needs to expand its customer base to reduce its dependence on big tech companies, The Motley Fool points out. The company must also demonstrate that new generative AI technologies do not make its services unnecessary. If this succeeds, the share could potentially continue to benefit greatly from the global AI boom – and thus become an exciting growth stock in the technology sector.
Bettina Schneider, editorial team at finanzen.net
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