Innodata is a little-known artificial intelligence play that investors don’t want to miss, according to Wedbush. Senior Analyst Daniel Ives initiated coverage of the data engineering stock at an outperform rating with a $48 price target. That target suggests shares can surge 40.4% over Wednesday’s closing level. Ives pointed to the Innodata’s work on custom large language models, which can be utilized by industries looking for a precession within AI that he said broadly used GPT can’t completely offer. He said these special models can instead provide sectors with unique products that are “tailored” to their nuances and challenges. “We believe Innodata’s expertise in data annotation and AI over its decades of experience will lead the company to be a leader in this developing space,” Ives wrote to clients in a Thursday note. Ives noted the five of the Magnificent 7 megacap companies already have contracts with Innodata, underscoring its status as a “partner of choice” for data needs. Two more deals are expected this year, he added. Additionally, he said the New Jersey-based company has an opportunity to expand beyond Big Tech to other industries that can benefit from AI. Ives said Innodata can lead on IT services related to AI, which he estimated could have a $200 billion total addressable market by 2029. Shares popped more than 3% before the bell on Thursday following Ives’ call. The stock has soared around 320% in 2024, building on last year’s rally of more than 174%. INOD YTD mountain Innodata, year to date