As the top maker of picks and shovels for the AI gold rush, Nvidia still has a bright future. From fiscal 2025 (which ended this January) to fiscal 2028, analysts expect its revenue and earnings per share (EPS<\/a>) to both grow at a CAGR of 41% as the AI boom continues. Those are stellar growth rates for a stock that trades at 28 times next year’s earnings, and it could climb another 31% to hit Wall Street’s average 12-month price target of $237.94 per share.<\/p>\n Image source: Getty Images.<\/p>\n Yet analysts expect another oft-overlooked AI stock to deliver even bigger gains than Nvidia. That company is Innodata (INOD<\/a> 1.55%), a data analytics company that helps large tech companies prepare their data for AI projects. Over the next 12 months, analysts expect its price to soar roughly 68% to an average price target of $93.75.<\/p>\n We should take Wall Street’s rosy estimates with a grain of salt, but Innodata has already outperformed Nvidia over the past five years with a gain of nearly 1,400%. Let’s see why Innodata’s stock soared — and if it can actually outperform Nvidia next year.<\/p>\n Today’s Change<\/p>\n (-1.55%) $-0.81<\/p>\n Current Price<\/p>\n $51.46<\/p>\n Key Data Points<\/p>\n Market Cap<\/p>\n $2B<\/p>\n Day’s Range<\/p>\n $49.71 – $52.77<\/p>\n 52wk Range<\/p>\n $26.41 – $93.85<\/p>\n Volume<\/p>\n 1.8M<\/p>\n Avg Vol<\/p>\n 2M<\/p>\n Gross Margin<\/p>\n 41.08%<\/p>\n Dividend Yield<\/p>\n N\/A<\/p>\n What does Innodata do?<\/p>\n Innodata was founded in 1988, and it didn’t attract much attention when it went public in 1993. At the time, it seemed like just another small, slow-growth data services provider. Its content digitization, digital publishing, and data enrichment services all served niche customers, were labor-intensive, and difficult to scale. From 1994 to 2019, its revenue only grew at a CAGR of 6%. At the end of 2019, it was trading at just $1.14 per share, which was 32% below its split-adjusted IPO price<\/a> of $1.67.<\/p>\n But in 2018, Innodata launched a suite of task-specific microservices that efficiently annotated large amounts of high-quality data for AI applications. The market’s demand for these services skyrocketed as the AI boom started, and at least five of the Magnificent Seven<\/a> companies now use its services to clean up and prepare their AI-oriented data.<\/p>\n When large tech companies launch a new AI project on their own, they generally spend 80% of their time simply preparing that raw data and just 20% of the time training the actual algorithm. That’s a painfully expensive and inefficient process, so it’s a lot smarter to outsource all of that work to Innodata.<\/p>\n How fast is Innodata growing?<\/p>\n From 2019 to 2024, Innodata’s revenue grew at a CAGR of 25% from $56 million to $171 million. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA<\/a>) surged from just $3 million in 2019 to $35 million in 2024.<\/p>\n That acceleration was driven by its R&D investments in its new Innodata Labs unit, which focuses on integrating its features into scalable AI data-preparation services. Its previous experience with filtering out large amounts of high-quality data supported that rapid transition.<\/p>\n Innodata expects its revenue to rise at least 45% in 2025 and to deliver “transformative growth” in 2026 as the generative AI market expands and it gains even more big tech customers. Analysts expect its revenue to grow 46% to $249 million in 2025 and 25% to $311 million in 2026.<\/p>\n As Innodata scales up its business, its operating costs should decline and its pricing power should improve. That’s why its adjusted EBITDA is expected to rise 53% to $53 million in 2025, and increase 26% to $67 million in 2026.<\/p>\n Could Innodata outperform Nvidia by the end of 2026?<\/p>\n<\/p>\n
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