INOD Stock Eyes Second Week Of Gains: Wedbush Says Innodata’s AI Growth Story Is Still Early

• Wedbush sees Innodata’s data preparation and model-training support as increasingly important to AI development. 
• The firm believes Innodata can continue delivering strong revenue growth through 2026 and beyond. 
• In May, Innodata reported Q1 revenue growth of 54% to $90.1 million. 

Innodata Inc. (INOD) stock is on track for a second week of gains, and its standout performance so far this year has prompted a positive view from Wedbush, which raised its price target on the artificial intelligence data services company. 

Wedbush Sees Continuous AI Demand For INOD 

Wedbush raised its price target on Innodata shares to $120 from $100 while maintaining its ‘Outperform’ rating. The new price target, however, matches the stock’s latest closing price. 

The firm said its outlook reflects growing conviction that the company is well-positioned to benefit from rising demand for AI-related services and products. 

Analysts highlighted Innodata's increasing importance within the artificial intelligence ecosystem. As technology companies race to develop more advanced AI systems, the need for high-quality data preparation, annotation, and model-training support has become more critical.

Wedbush believes Innodata has become an important part of building AI models. The firm expects the company to continue growing its revenue through 2026 and possibly beyond. 

Innodata stock traded over 1% lower overnight, after hitting a 52-week high of $112.5 in Thursday’s regular session. The stock has outperformed AI-related exchange-traded funds such as the Global X Artificial Intelligence & Technology ETF (AIQ) and the Roundhill Generative AI & Technology ETF (CHAT).

INOD’s Rise From Digital Services To AI Infrastructure Provider 

Instead of viewing Innodata as a traditional digital-services company, investors now see it as an important partner for major tech companies developing advanced AI models. 

As AI developers push to create more capable large language models, access to reliable and legally sourced training data has become important, and Innodata has positioned itself to address those issues. The company helps technology clients generate, organize and refine data that can be used to train sophisticated AI systems.

The New York-based company said in May that its fiscal first-quarter (Q1) revenue jumped 54% to $90.1 million. Earnings came in at $0.42 per share, beating analysts' expectations of $76.47 million in revenue and $0.08 per share, according to Fiscal AI.

The company’s adjusted gross margin improved to 47%, up 4 percentage points from last year, showing better operational efficiency. Net profit almost doubled to $14.9 million.

Innodata also increased its forecast for 2026 revenue growth to around 40% or more, pointing to stronger-than-expected customer demand and a growing pipeline of new business opportunities.

INOD Retail Traders View

On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory with a 341% rise in message volume in 24 hours. 

A user said, “This 120 PT makes no sense to me. The price target should be at 200 or above. In my view. $INOD will likely be above 200 in 12 months. Not 120. Technically looking at the monthly chart, it's a high probability technically.”

Another user said, “bought this last year and watched it lag for months. Now this incredible move. Patience pays!”

INOD stock has gained over 138% year-to-date. 

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