Watch 3 Little-Known Mid-Cap AI Stocks That Have Climbed Past Month
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The artificial intelligence (AI) frenzy remains intact in the United States despite the uncertainty related to the Trump administration’s tariff and trade policies. Four of the “magnificent 7” stocks have decided to invest a massive $325 billion in 2025 as capital expenditure for AI-infrastructure development. This marks a significant 46% year-over-year increase in capital spending on the AI ecosystem.
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This huge spending on AI infrastructure will dramatically change the world in the next five years in fields like hyperscale automation, robotics, autonomous vehicles, life-science revolutions, energy and materials.
At this stage, we recommend investors to keep a close watch on three little-known AI stocks that have popped in the past month with double-digit returns. These two stocks have a lot of value supported by global AI spending that will be unveiled in the long term. These stocks are: Innodata Inc. INOD, Fastly Inc. FSLY and AeroVironment Inc. AVAV.
The chart below shows the price performance our three stocks in the past month.
Image Source: Zacks Investment Research
Innodata Inc.
Innodata has established itself as a crucial partner in this AI revolution by providing high-quality data needed to train advanced language models. INOD is expected to benefit from the massive demand for supplying state-of-the-art data engineering to large language model building and maintenance over the long term.
INOD’s football-to-dime analogy effectively illustrates the vast untapped potential in AI data — if all possible human knowledge that could be captured as data represents a football, today's best AI models have only trained on data equivalent to the size of a dime.
The recent beta launch of Innodata's Generative AI Test & Evaluation Platform, powered by NVIDIA technology, represents a strategic expansion of the company's AI services portfolio. Investors should monitor how effectively INOD is commercializing new offerings such as the AI Test & Evaluation Platform.
The long-term growth of Innodata’s business model is set to be backed by big techs, other big enterprises, industry-specific demand, federal agencies, public relations and healthcare. One of the most promising aspects of INOD’s strategy is its successful customer diversification efforts. INOD currently carries a Zacks Rank #3 (Hold).
Innodata has an expected revenue and earnings growth rate of 40.3% and -19.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings remained the same over the last 30 days.
Fastly Inc.
Fastly provides infrastructure software offering cloud computing, image optimization, security, edge computer technology and streaming solutions. On Dec.16, 2024, FSLY unveiled Fastly AI Accelerator, a semantic caching solution that allows developers to optimize their LLM (large language model) generative AI applications.