Innodata (INOD +3.32%) has existed as a company since 1988. However, a shift into artificial intelligence (AI) remade the data engineering company as a low-code software platform that helped with data collection and helped to streamline business processes for customers in specific industries.
Not surprisingly, its rising popularity has helped boost the stock, and investors who bought shares five years ago and held them are likely happy with their gains.
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Innodata over the last five years
Five years ago, Innodata sold for $7.25 per share, allowing an investor to buy 14 shares for $101.50. Today, those shares would be worth $662 as of the time of this writing, far above the $195 one would have earned from the S&P 500 index.
Admittedly, such an investor would have been down on this investment until May 2024, when the company began to emerge as a partner for companies building generative AI models. From that point, the one-time penny stock began appreciating rapidly, peaking at almost $94 per share.
NASDAQ: INOD
Key Data Points
Indeed, the stock has lost about half of its value since its high in October as valuation concerns and worries about an "AI bubble" have weighed on the stock.
Nonetheless, investors may have good reason to keep holding despite the sale. The pullback has taken its P/E ratio to 49, a level higher than the S&P 500 average of 30, but not a level that is unusual for a growth stock.
Moreover, its $179 million in revenue grew by 61% in the first nine months of 2025, indicating its AI boom is not ending anytime soon. Amid that robust growth, its relatively low P/E ratio could help it to continue crushing the market, which indicates its market-beating returns are unlikely to end soon.
