Innodata, MicroStrategy, and Lumen might skyrocket within the close to future.
The fast development of the factitious intelligence (AI) market drove many shares to report highs over the previous few years. That’s why shares of Nvidia, the chipmaking bellwether of that booming market, surged 2,760% over the previous 5 years.
Some traders may be reluctant to chase these breakneck positive aspects, however loads of missed AI stocks might nonetheless go parabolic sooner or later. Let’s check out three shares that match this description: Innodata (INOD 75.76%), MicroStrategy (MSTR -0.14%), and Lumen Applied sciences (LUMN 4.35%).

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1. Innodata
Innodata was as soon as thought of a slow-growth IT providers and enterprise software program firm. Nevertheless, its inventory soared from about $1 on the finish of 2019 to about $32 at the moment. That large rally was the results of an AI-driven acceleration in its high line.
Income rose 10% in 2023. However within the first 9 months of 2024, gross sales soared 83% 12 months over 12 months to $111 million as its adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) jumped 266% to $20 million. It additionally turned worthwhile on the idea of typically accepted accounting ideas (GAAP). That explosive development stemmed from its rollout of generative AI instruments for 5 of the “Magnificent Seven” corporations.
For the total 12 months, Innodata expects its income to soar within the vary of 88% to 92% as extra corporations undertake its generative AI providers. From 2024 to 2026, analysts count on its gross sales to have a compound annual development fee (CAGR) of 25% as its adjusted EBITDA experiences a CAGR of 29%.
These are stellar development charges for a inventory that trades at 4 occasions subsequent 12 months’s gross sales and 37 occasions its adjusted EBITDA. Innodata has already had an important run over the previous 5 years, nevertheless it might head even increased because it locks in additional large tech corporations with its knowledge processing and AI capabilities.
2. MicroStrategy
MicroStrategy was as soon as dismissed as a slow-growing enterprise software program firm, then it began to hoard Bitcoin in 2020. On the finish of its newest quarter, it held 252,220 of the digital tokens with a present market worth of $19.26 billion. That’s practically a 3rd of MicroStrategy’s enterprise worth of $59.1 billion.
The bulls imagine MicroStrategy’s hoarding strategy will repay if the highest cryptocurrency’s value skyrockets over the following few years. In concept, the rising worth of its Bitcoin holdings might offset the slower development of its enterprise software program enterprise.
Nevertheless, MicroStrategy can also be a generative AI firm. Final October, it rolled out MicroStrategy AI, a platform that permits corporations to combine generative AI options into their present knowledge purposes. It expects these new options, together with the transformation of its on-site purposes into cloud-based providers, to stabilize the expansion of its core software program enterprise because it accumulates extra crypto.
Analysts solely count on MicroStrategy’s income to have a CAGR of 1% from 2023 to 2026, because it stays unprofitable on a GAAP foundation. However the worth of its Bitcoin holdings might continue to grow — and its generative AI enterprise might expertise a sudden development spurt like Innodata if it locks in additional prospects.
3. Lumen
Lumen, the telecom firm previously often known as CenturyLink, suffered 5 consecutive years of income declines. It was additionally unprofitable over the previous two years and suspended its dividend in 2022. That’s why its inventory value dropped under $1 this June.
In contrast to a lot of its telecom friends, Lumen did not broaden into the wi-fi market to cut back its dependence on wireline connections. As an alternative, it doubled down on the slow-growth wireline market and bundled extra cloud, safety, and collaboration providers with its enterprise wireline plans.
It additionally expanded into the higher-growth fiber market. Lumen initially anticipated to generate sluggish however secure development as economies of scale kicked in, however its declining enterprise wireline income persistently offset its rising fiber income. In consequence, its rising prices overwhelmed its declining income and its losses widened.
However over the previous few months, Lumen struck a sequence of AI connectivity offers value $5 billion — together with (*3*) the information middle infrastructure of Microsoft‘s Azure cloud platform to deal with extra generative AI purposes.
These new offers lit a hearth beneath Lumen’s inventory and drove it again to about $9. However even after that rally, its enterprise worth of $25.5 billion is lower than 2 occasions increased than its projected gross sales for 2024. Analysts count on its income to say no once more in 2024 and 2025, however its new AI contracts might assist it clear these low expectations. If that occurs, Lumen’s inventory might go parabolic because it attracts extra value-seeking traders.
Leo Sun has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Bitcoin, Microsoft, and Nvidia. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure policy.