<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Innodata shares jumped over 100% after the company reported record Q1 results.</li><li>A new contract with an unnamed AI hyperscaler could generate $51 million in revenue this year.</li><li>Investors now see Innodata as an emerging AI play, pushing the stock to 77 times trailing earnings.</li><li>10 stocks we like better than Innodata ›</li></ul>Shares of Innodata (NASDAQ: INOD) soared 101.3% higher on Friday morning, peaking near 11 a.m. ET. The data engineering expert backed down a bit from that extreme level, but was still up by 86% as of this writing at 2:20 p.m. ET. Innodata shareholders can thank a fantastic earnings report for this massive jump.<h2>A classic blowout quarter</h2>Let's start with the numbers. First-quarter sales rose 54% year over year to $90.1 million. Earnings nearly doubled over the same period, jumping from $0.22 to $0.42 per diluted share.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »The Street consensus had called for earnings near $0.23 per share on revenue in the neighborhood of $72.1 million. Look up &#34;blowout&#34; in the dictionary, and you might just see Innodata's report instead of a standard definition.<h2>AI is the engine behind the growth</h2>Of course, Innodata's sudden growth spurt is powered by artificial intelligence (AI). What huge jump isn't AI-based nowadays?The company sells data engineering services to other companies. It provides the data sets and data quality evaluation tools needed to build effective AI platforms. The company is signing many data engineering deals right now, including a massive contract with an unnamed AI hyperscaler.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2OTI4MS9haS1hbmRyb2lkLWJsYWNrLXJvYm90LWhlYWQuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2OTI4MS9haS1hbmRyb2lkLWJsYWNrLXJvYm90LWhlYWQuanBnJnc9NzAw"/>Who is Innodata's new hyperscaler customer? Image source: Getty Images. &#34;We believe these engagements could potentially generate $51 million of revenue this year,&#34; CEO Jack Abuhoff said on the earnings call. &#34;Twelve months ago, our revenue from this customer was zero. But this year, we expect it to become our second-largest customer.&#34;That's the kind of mega-customer attention that turns heads on Wall Street. Yesterday, Innodata was a modestly priced growth stock with unclear long-term prospects. Today, investors see an emerging AI superstar, and the stock trades at 77 times trailing earnings. Whether that premium valuation holds will depend on Innodata's ability to convert these new AI contracts into sustained revenue growth.<h2>Should you buy stock in Innodata right now?</h2> Before you buy stock in Innodata, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Innodata wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 8, 2026. Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Innodata's stock surged over 100% following a record Q1 earnings report, with sales rising 54% to $90.1 million and earnings nearly doubling to $0.42 per share. A new contract with an unnamed AI hyperscaler is expected to generate $51 million in revenue this year, positioning Innodata as a promising AI investment. The stock now trades at 77 times trailing earnings, reflecting investor optimism about its growth potential in the AI sector.

Why Innodata Stock Doubled Today (Yes, Really!)