Top 10 Stocks Offering High Upside Potential in Data Centers and AI

8. Innodata Inc. (NASDAQ:INOD)

Stock Upside Potential: 63.87%

Number of Hedge Fund Holders: 16

Innodata Inc. (NASDAQ:INOD) is one of the top stocks offering high upside potential in data centers and AI. On November 11, BWS Financial analyst Hamed Khorsand reiterated a Buy rating on Innodata Inc. (NASDAQ:INOD) with a $110 price target, citing better-than-expected Q3 results and strong future prospects. With a projected 26% revenue increase by 2026, Khorsand highlighted Innodata’s solid trajectory as the basis for his optimistic outlook.

Earlier on November 6, Innodata Inc. delivered another record-setting performance, with third-quarter revenue, profitability, and cash coming at all-time highs. Chief Executive Officer Jack Abuhoff reiterated that they expect the growth to continue, backed by deepening ties with big tech and AI innovation labs.

Revenue in the quarter totaled $62.6 million, driven by 20% year-over-year organic growth. For the first nine months of the year, revenue totaled $179.3 million, representing 61% organic growth. The company ultimately reported adjusted EBITDA of $16.2 million for the quarter, representing a 17% increase, as net income came in at $8.3 million, or $0.26 per share.

“Looking ahead, in 2026, we anticipate a continuation of our transformative growth, fueled by (1) deepening relationships with the world’s leading Big Tech and AI innovation labs, as evidenced by verbal confirmation of an expansion with our largest customer that could potentially result in substantial revenue, verbal confirmation of a deal with another Big Tech which could potentially result in $6.5 million of annualized revenue run rate [..],” said CEO Abuhoff.

Innodata Inc. (NASDAQ:INOD) is a global data engineering company that helps businesses solve complex data challenges and drive Artificial Intelligence (AI) and Generative AI innovation. It combines advanced machine learning and AI technologies with a global workforce of subject matter experts to provide high-quality data solutions.