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Watch 3 Little-Known Mid-Cap AI Stocks That Have Climbed Past Month
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Key Takeaways
INOD gains from surging demand for data services in training and maintaining large language models.
FSLY's AI Accelerator boosts developer tools for generative AI via efficient edge cloud infrastructure.
AVAV integrates AI and computer vision into defense-focused robotic systems for U.S. and global clients.
The artificial intelligence (AI) frenzy remains intact in the United States despite the uncertainty related to the Trump administration’s tariff and trade policies. Four of the “magnificent 7” stocks have decided to invest a massive $325 billion in 2025 as capital expenditure for AI-infrastructure development. This marks a significant 46% year-over-year increase in capital spending on the AI ecosystem.
This huge spending on AI infrastructure will dramatically change the world in the next five years in fields like hyperscale automation, robotics, autonomous vehicles, life-science revolutions, energy and materials.
At this stage, we recommend investors to keep a close watch on three little-known AI stocks that have popped in the past month with double-digit returns. These two stocks have a lot of value supported by global AI spending that will be unveiled in the long term. These stocks are: Innodata Inc. (INOD - Free Report) , Fastly Inc. (FSLY - Free Report) and AeroVironment Inc. (AVAV - Free Report) .
The chart below shows the price performance our three stocks in the past month.
Image Source: Zacks Investment Research
Innodata Inc.
Innodata has established itself as a crucial partner in this AI revolution by providing high-quality data needed to train advanced language models. INOD is expected to benefit from the massive demand for supplying state-of-the-art data engineering to large language model building and maintenance over the long term.
INOD’s football-to-dime analogy effectively illustrates the vast untapped potential in AI data — if all possible human knowledge that could be captured as data represents a football, today's best AI models have only trained on data equivalent to the size of a dime.
The recent beta launch of Innodata's Generative AI Test & Evaluation Platform, powered by NVIDIA technology, represents a strategic expansion of the company's AI services portfolio. Investors should monitor how effectively INOD is commercializing new offerings such as the AI Test & Evaluation Platform.
The long-term growth of Innodata’s business model is set to be backed by big techs, other big enterprises, industry-specific demand, federal agencies, public relations and healthcare. One of the most promising aspects of INOD’s strategy is its successful customer diversification efforts. INOD currently carries a Zacks Rank #3 (Hold).
Innodata has an expected revenue and earnings growth rate of 40.3% and -19.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings remained the same over the last 30 days.
Fastly Inc.
Fastly provides infrastructure software offering cloud computing, image optimization, security, edge computer technology and streaming solutions. On Dec.16, 2024, FSLY unveiled Fastly AI Accelerator, a semantic caching solution that allows developers to optimize their LLM (large language model) generative AI applications.
FSLY operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. FSLY’s Edge Cloud Platform offers more efficient performance as developers need only a single line of code instead of repeated calls to the AI provider to update their application to a new API endpoint. FSLY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fastly has an expected revenue and earnings growth rate of 8.7% and 16.7%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 10% over the last 30 days.
AeroVironment Inc.
Zacks Rank #3 AeroVironment designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. AVAV operates through the UnCrewed Systems, Loitering Munition Systems, and the MacCready Works segments.
AVAV applies advanced technological innovations, seamlessly integrating AI and cutting-edge computer vision into agile, effective solutions. AVAV supplies uncrewed aircraft and ground robot systems, loitering munitions systems, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments.
AeroVironment also offers airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems.
In addition, AVAV offers small UAS products, including training, spare parts, product repair, product replacement, maintenance, and upgrade services. Further, it develops mars Helicopters and high-altitude pseudo-satellite UAS systems.
AeroVironment has an expected revenue and earnings growth rate of 26.1% and 33.6%, respectively, for the current year (ending April 2026). The Zacks Consensus Estimate for current-year earnings has remained the same over the last seven days.
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Watch 3 Little-Known Mid-Cap AI Stocks That Have Climbed Past Month
Key Takeaways
The artificial intelligence (AI) frenzy remains intact in the United States despite the uncertainty related to the Trump administration’s tariff and trade policies. Four of the “magnificent 7” stocks have decided to invest a massive $325 billion in 2025 as capital expenditure for AI-infrastructure development. This marks a significant 46% year-over-year increase in capital spending on the AI ecosystem.
This huge spending on AI infrastructure will dramatically change the world in the next five years in fields like hyperscale automation, robotics, autonomous vehicles, life-science revolutions, energy and materials.
At this stage, we recommend investors to keep a close watch on three little-known AI stocks that have popped in the past month with double-digit returns. These two stocks have a lot of value supported by global AI spending that will be unveiled in the long term. These stocks are: Innodata Inc. (INOD - Free Report) , Fastly Inc. (FSLY - Free Report) and AeroVironment Inc. (AVAV - Free Report) .
The chart below shows the price performance our three stocks in the past month.
Image Source: Zacks Investment Research
Innodata Inc.
Innodata has established itself as a crucial partner in this AI revolution by providing high-quality data needed to train advanced language models. INOD is expected to benefit from the massive demand for supplying state-of-the-art data engineering to large language model building and maintenance over the long term.
INOD’s football-to-dime analogy effectively illustrates the vast untapped potential in AI data — if all possible human knowledge that could be captured as data represents a football, today's best AI models have only trained on data equivalent to the size of a dime.
The recent beta launch of Innodata's Generative AI Test & Evaluation Platform, powered by NVIDIA technology, represents a strategic expansion of the company's AI services portfolio. Investors should monitor how effectively INOD is commercializing new offerings such as the AI Test & Evaluation Platform.
The long-term growth of Innodata’s business model is set to be backed by big techs, other big enterprises, industry-specific demand, federal agencies, public relations and healthcare. One of the most promising aspects of INOD’s strategy is its successful customer diversification efforts. INOD currently carries a Zacks Rank #3 (Hold).
Innodata has an expected revenue and earnings growth rate of 40.3% and -19.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings remained the same over the last 30 days.
Fastly Inc.
Fastly provides infrastructure software offering cloud computing, image optimization, security, edge computer technology and streaming solutions. On Dec.16, 2024, FSLY unveiled Fastly AI Accelerator, a semantic caching solution that allows developers to optimize their LLM (large language model) generative AI applications.
FSLY operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. FSLY’s Edge Cloud Platform offers more efficient performance as developers need only a single line of code instead of repeated calls to the AI provider to update their application to a new API endpoint. FSLY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fastly has an expected revenue and earnings growth rate of 8.7% and 16.7%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 10% over the last 30 days.
AeroVironment Inc.
Zacks Rank #3 AeroVironment designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. AVAV operates through the UnCrewed Systems, Loitering Munition Systems, and the MacCready Works segments.
AVAV applies advanced technological innovations, seamlessly integrating AI and cutting-edge computer vision into agile, effective solutions. AVAV supplies uncrewed aircraft and ground robot systems, loitering munitions systems, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments.
AeroVironment also offers airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems.
In addition, AVAV offers small UAS products, including training, spare parts, product repair, product replacement, maintenance, and upgrade services. Further, it develops mars Helicopters and high-altitude pseudo-satellite UAS systems.
AeroVironment has an expected revenue and earnings growth rate of 26.1% and 33.6%, respectively, for the current year (ending April 2026). The Zacks Consensus Estimate for current-year earnings has remained the same over the last seven days.