We recently published a list of 10 High Growth IT Stocks To Invest In Now. In this article, we are going to take a look at where Innodata Inc. (NASDAQ:INOD) stands against other high growth IT stocks to invest in now.

The global IT services market is experiencing significant growth and is on track to grow at a compound annual growth rate of 9.5% from 2024 to 2030, as estimated by Grand View Research. This expansion is particularly pronounced in developing economies such as India and China, driven by the increasing adoption of cloud computing and advanced digital technologies.

Growth in this industry is driven by several factors, including increasingly stringent data privacy regulations and heightened concerns over cybersecurity, compelling enterprises to invest heavily in robust IT solutions. The widespread adoption of advanced technologies such as artificial intelligence, machine learning, and the Internet of Things has further fueled market demand.  As businesses across various industries embrace digital transformation, they are turning to IT service providers to meet their evolving needs. The shift towards remote and hybrid work models has necessitated robust IT infrastructure to ensure seamless operations, especially for large enterprises. Cloud computing has emerged as a key driver of market growth, enabling businesses to migrate their critical operations to the cloud and leverage IT services to securely manage these environments. Additionally, the increasing adoption of software-as-a-service models has led to a surge in IT expenditures, as organizations seek to streamline their business processes and focus on core competencies.

Is The Tech Sector Still Booming?

On November 13, Keith Lerner, Co-Chief Investment Officer at Truist Wealth, and Mark Malek, Chief Investment Officer at Siebert Financial, appeared on CNBC and highlighted their outlook for the tech sector outlook.

Lerner expressed a continued preference for technology stocks, particularly those involved in software development. He noted that software companies are increasingly automating processes and driving efficiency across various sectors. This trend positions them well for future growth, even if there are short-term fluctuations in the market. Lerner highlighted that despite any potential pullback due to rising yields or inflation concerns, he views software stocks as having strong leadership potential.

Malek concurred with Lerner’s positive outlook on technology but emphasized a selective investment approach within this sector. He pointed out that ongoing supply chain issues are affecting the chip industry, which could impact performance in certain areas of technology. However, he maintained that significant opportunities exist within the AI ecosystem and other technology-related fields.

As the global IT services market continues to expand at an impressive pace, driven by technological advancements and increasing digital adoption, information technology stocks may be well-positioned to go higher. Given this context, we’re here with a list of 10 high growth IT stocks to invest in now.

Our Methodology

We used Finviz to compile an initial list of IT stocks with high 5-year compound annual growth rates. From that list, we narrowed our choices to 10 high-growth IT stocks that analysts were the most bullish on. The stocks are ranked in ascending order of analysts’ upside potential.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Innodata Inc. (NASDAQ:INOD)

5 Year Revenue CAGR: 19.59%

Average Upside Potential as of November 14: 17.43%

Innodata Inc. (NASDAQ:INOD) provides business process, technology, and consulting services. It also provides products that aim to help clients create, manage, use, and distribute digital information. It’s a global data engineering company specializing in AI data preparation, data engineering support services, medical record transformation, and marketing communications. It serves a range of industries including banking, insurance, finance, technology, and media.

The company’s third quarter was marked by significant growth, driven by increased demand for AI-related services. It generated $30.6 million in revenue from a single Big Tech customer, exceeding initial projections of $27.6 million per quarter, due to the company’s ability to provide critical data engineering services, particularly in the realm of GenAI. The overall revenue for Q3 totaled $52.22 million.

It’s focused on supporting Big Tech companies in developing cutting-edge GenAI models. This involves providing high-quality data, including supervised fine-tuning data and pre-training data. The company is also addressing the growing challenges of data privacy and model quality, particularly as AI models become more sophisticated.

In addition to Big Tech partnerships, Innodata Inc. (NASDAQ:INOD) is expanding its enterprise services to help businesses adopt GenAI. This includes providing consulting, AI services, and digital services to enable businesses to leverage AI-powered solutions. It’s also developing B2B industry applications and enterprise platforms, such as Agility, to address specific niche use cases. Its strong financial performance, coupled with its strategic focus on AI, positions the company for continued growth and success.

Overall, INOD ranks 6th on our list of high growth IT stocks to invest in now. As we acknowledge the growth potential of INOD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INOD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.