Saturday, January 3, 2026

4 Under-the-Radar AI Stocks to Buy for 2026

For investors bearish on artificial intelligence, watching the market action in 2025 had to feel like watching a zombie apocalypse movie. There were so many moments this year when it seemed the AI bull market was cooked, only to rise again like the undead and move forward with its insatiable thirst for more capital.

With the S&P 500 and Nasdaq 100 both closing in on another 20% annual gain, you might think every rock in the AI landscape has been turned over, and there are no diamonds left to mine.

But 2025 also showed us that AI is more than just hyperscalers and semiconductors; there’s a whole ecosystem of companies needed to keep data centers humming along.

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Today we’ll look at four stocks that are still flying under the radar in the AI industry.

Each company chosen here has a market cap under $5 billion and at least 30% year-over-year (YOY) revenue growth over the last three years, with growing profit margins. These stocks were all big winners in 2025, so they might not stay under the radar for long if the AI rally continues.

Innodata (NASDAQ:INOD) made headlines earlier this year when it posted a DiMaggio-esque streak of 19 gains in 20 trading sessions. But like META before it, the impressive streak was followed by a swift and sharp decline. The stock is still beating the S&P 500 year-to-date (YTD), but it’s now down over 30% in the last three months. However, both the fundamental and technical data point to a prosperous 2026. The company posted record revenue of over $62 million in Q3 2025, its fifth consecutive top- and bottom-line earnings beat. The $62 million represented a 20% YOY growth from Q3 2024, and management confirmed the full-year 2025 expectation of 45% YOY growth from 2024. Margins have also grown to a comfortable 26%, which should unlock even more EPS growth moving forward.

INOD shares slumped following their impressive winning streak, but the stock still retained a more than 30% YTD gain as 2025 draws to an end. And despite the recent slump, the technical picture is beginning to show improvement. The stock has once again found support along the 200-day simple moving average (SMA), an area where buyers have repeatedly flooded in this year. With the Moving Average Convergence Divergence (MACD) showing signs of turning bullish and Benzinga Edge Scores of 96.36 for Growth and 98.53 for Quality, INOD shares could be an even bigger winner in 2026.

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