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We just covered the 12 Best AI Data Center Stocks to Buy Right Now and Innodata Inc. (NASDAQ:INOD) ranks 12th on this list.

Innodata Inc. (NASDAQ:INOD) has emerged as a data engineering partner for big tech companies in recent months. The firm has successfully pivoted to high-complexity data engineering for the Magnificent Seven and other frontier model builders. This provides it with a deep technical moat. Unlike competitors that use crowdsourced workers, Innodata utilizes subject-matter experts for Supervised Fine-Tuning (SFT) and Reinforcement Learning from Human Feedback (RLHF). In early 2026, Innodata secured a major partnership with Palantir to modernize AI-powered rodeo analytics and expanded its SHIELD contract for LLM safety. The overall financial performance of the company speaks for itself as well.

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Innodata Inc. (NASDAQ:INOD) reported 48% full-year organic revenue growth for 2025, reaching $251.7 million. Management has guided for 35%+ revenue growth in 2026. Hedge funds like Schonfeld Strategic Advisors and Millennium Management have established new or expanded positions to capture this upside. At the end of 2025, the company held $82.2 million in cash, allowing it to self-fund innovation in agentic AI and robotics data without diluting shareholders. It is also expanding into Physical AI. Innodata is now building egocentric and affordance-rich datasets used to train robots and drones. The company recently achieved a 6.45% improvement over previous state-of-the-art benchmarks in drone object detection, positioning it as a critical supplier for autonomous systems.

While we acknowledge the potential of INOD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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