lang icon English
Nov. 9, 2024, 11:31 p.m.
4388

Undervalued AI Stocks Poised for Growth: Innodata, MicroStrategy, and Lumen

The artificial intelligence (AI) market has experienced rapid growth, leading to significant gains for stocks like Nvidia, which soared 2, 760% in the last five years. While some investors may hesitate to pursue such gains, there are still undervalued AI stocks poised for future growth, such as Innodata, MicroStrategy, and Lumen Technologies. 1. **Innodata**: Once a slow-growth IT services firm, Innodata's stock skyrocketed from $1 in 2019 to $32 today due to increased demand for its AI tools. In 2023, revenue grew by 10%, but exploded by 83% in the first nine months of 2024, reaching $111 million, while adjusted EBITDA surged 266% to $20 million. Innodata anticipates 88%-92% revenue growth for the full year as its generative AI services gain popularity. Analysts project a compound annual growth rate (CAGR) of 25% for sales and 29% for adjusted EBITDA from 2024 to 2026, making its current valuation of 4 times next year's sales and 37 times its adjusted EBITDA appear promising. 2. **MicroStrategy**: Known for hoarding Bitcoin since 2020, MicroStrategy holds 252, 220 tokens valued at $19. 26 billion, a significant portion of its $59. 1 billion enterprise value. This strategy could pay off if Bitcoin's price surges.

In addition, MicroStrategy has entered the generative AI market, launching MicroStrategy AI last October to help companies enhance their data applications. While revenue is expected to grow at a muted 1% CAGR from 2023 to 2026 and the company remains unprofitable on a GAAP basis, its Bitcoin holdings and AI ventures could drive future growth. 3. **Lumen**: Formerly CenturyLink, Lumen has faced five years of declining revenue and halted dividends in 2022, dropping its stock below $1. Unlike competitors, it hasn't expanded into wireless services, instead focusing on wireline connections and business-related services. Despite setbacks, Lumen recently secured $5 billion in AI connectivity deals, including a partnership with Microsoft's Azure. These developments sparked a stock rally to about $9, yet its enterprise value remains less than twice its projected 2024 sales. Although revenue is expected to decline in 2024 and 2025, new AI contracts might surpass expectations, potentially boosting its stock further. These companies highlight the ongoing opportunities within the AI market, suggesting that careful investment in overlooked stocks may yield significant returns.



Brief news summary

The rise of AI has reshaped the stock market, notably exemplified by Nvidia's share surge of 2,760% over five years. Companies like Innodata, MicroStrategy, and Lumen Technologies are now seen as promising investments due to strategic AI-focused initiatives. **Innodata** has transformed from a small IT service provider to a significant AI entity, with its stock jump from $1 in 2019 to $32. The company's revenue grew by 10% in 2023, and by 83% to $111 million in the first nine months of 2024, thanks to its generative AI tools. Innodata anticipates 88% to 92% revenue growth, with analysts projecting a 25% CAGR in sales and a 29% EBITDA improvement from 2024 to 2026. Its valuation stands attractively at four times the expected sales for next year. **MicroStrategy** has pivoted from software to investing in Bitcoin, currently holding 252,220 tokens worth $19.26 billion. Despite predicting only a 1% CAGR in revenue growth from 2023 to 2026, its generative AI platform and the increasing Bitcoin value could boost its future prospects. **Lumen Technologies**, formerly CenturyLink, has experienced revenue drops, with shares sinking below $1. By refocusing on wireline services and investing in cloud, security, and fiber technologies, its stock has climbed to $9. AI advancements through Microsoft's Azure have supported this recovery, despite anticipated revenue declines in 2024 and 2025. However, successful AI projects may exceed expectations, drawing investor interest. Each company demonstrates diverse strategies within the AI sector, presenting opportunities for significant investment gains.

Watch video about

Undervalued AI Stocks Poised for Growth: Innodata, MicroStrategy, and Lumen

Try our premium solution and start getting clients — at no cost to you

I'm your Content Creator.
Let’s make a post or video and publish it on any social media — ready?

Language

Content Maker

Our unique Content Maker allows you to create an SEO article, social media posts, and a video based on the information presented in the article

news image

Last news

The Best for your Business

Hot news

Oct. 26, 2025, 2:30 p.m.

WPP Launches a Self-Serve Version of Its AI Platf…

British advertising giant WPP is launching WPP Open Pro, a self-serve, AI-driven marketing platform that allows marketers to independently build campaigns, create creative assets, and activate them with AI assistance.

Oct. 26, 2025, 2:21 p.m.

AI Video Surveillance Systems Improve Public Safe…

Law enforcement agencies and security firms worldwide are increasingly implementing advanced Artificial Intelligence (AI) video surveillance systems to improve the monitoring of public spaces.

Oct. 26, 2025, 2:16 p.m.

“AI SMM”, new training from Hallakate – Learn how…

In an era where technology is transforming content creation and social media management, Hallakate introduces new training tailored to this modern landscape: AI SMM.

Oct. 26, 2025, 2:13 p.m.

Oracle AI Agents Help Sales Teams Create More Mea…

Oracle has introduced advanced AI agents within its Fusion Cloud Sales platform to revolutionize the sales process by enhancing efficiency and enabling sales teams to concentrate on building meaningful customer relationships.

Oct. 26, 2025, 2:12 p.m.

Digital Silk Analyzes Google's AI Overviews and t…

Digital Silk, a prominent digital marketing agency in the United States specializing in web development and SEO strategy, has announced a thorough review of the recent changes Google has introduced regarding AI-generated content overviews.

Oct. 26, 2025, 2:12 p.m.

OpenAI's $6.6 Billion Share Sale Valuates Company…

OpenAI has recently completed a remarkable $6.6 billion share sale, boosting the company’s valuation to an extraordinary $500 billion.

Oct. 26, 2025, 10:22 a.m.

Sora app’s hyperreal AI videos ignite online trus…

Scrolling through the Sora app feels like entering a surreal multiverse where absurd and hyperreal short videos abound: Michael Jackson performing standup, the Predator alien flipping burgers, a moose crashing through a glass door, and Queen Elizabeth diving off a pub table.

All news

AI Company

Launch your AI-powered team to automate Marketing, Sales & Growth

and get clients on autopilot — from social media and search engines. No ads needed

Begin getting your first leads today