10 Worst AI Stocks to Buy According to Reddit

4. Innodata Inc. (NASDAQ:INOD)

Short % of Shares Outstanding As of August 30: 12.45%

Number of Hedge Fund Holders: 6

Innodata Inc. (NASDAQ:INOD) provides business process, technology, and consulting services through products that aim to help clients create, manage, use, and distribute digital information. The platform uses AI-powered algorithms to automate data annotation, classification, and validation, ensuring data accuracy and consistency.

The company secured a new customer in a major social media platform for its GenAI solutions recently. It also landed a deal with a clinical provider in the healthcare market, marking the first use of its Synodex platform in a clinical context. Furthermore, a federal government agency has contracted Innodata Inc. (NASDAQ:INOD) to provide news briefs and media monitoring using the new GenAI capabilities of their Synodex platform.

In June, it secured two significant new LLM development programs from one of its existing Magnificent 7 Big Tech customers. These programs are projected to deliver approximately $44 million in annual recurring revenue and represent the largest customer win.

All of these expansions together brought the account’s total value to approximately $110.5 million of expected annual run-rate revenue by the end of Q2 2024. The company’s revenue was up 66% year-over-year in this second quarter. Its PR CoPilot AI layer, integrated with the Agility platform, despite only being completed 30%, delivered over $5 million in Q2 revenue.

Innodata Inc. (NASDAQ:INOD) is well-positioned to benefit from the growing demand for GenAI by providing Big Tech companies with essential data and computational resources.