2 Underrated AI Stocks Wall Street Is Raving About

Key Takeaways

ASML is a leading player in extreme ultraviolet (EUV) lithography, essential for advanced semiconductors, and reports significant revenue growth.
Innodata has transitioned from obscurity to prominence in AI, increasing revenue by 48% in 2025 and now offering crucial data services for generative AI models.
Despite their growth, ASML and Innodata remain largely unnoticed by investors, presenting potential opportunities for savvy stock buyers.

ASML: An Underrated Leader in Chipmaking

ASML Holdings, a Netherlands-based company, has positioned itself as a major player in the chipmaking industry, particularly with its extreme ultraviolet (EUV) lithography technology, vital for producing advanced semiconductors. ASML cites itself as “the most important company you’ve never heard of,” an assertion supported by its dominance in the market, outpacing competitors like Canon and Nikon.

The company boasts robust financial growth, with revenue projected to reach between 34 billion euros and 39 billion euros in 2026, marking a 14% increase compared to the previous year. For 2025, ASML reported a revenue of nearly 33 billion euros and a net income of approximately 9.6 billion euros, signifying a substantial rise. The significant demand for AI capabilities in semiconductor manufacturing has contributed to a nearly doubled stock value over the past year, despite a high P/E ratio of 52.

Innodata: From Information Services to AI Growth

Innodata, established in 1988, has seen a transformation in its business model, leveraging AI to provide services like data curation and model evaluation intended for generative AI models. This shift has catalyzed revenue growth, which surged by 48% in 2025, reaching around $252 million, with a profit margin of $32 million.

Despite the impressive growth, analysts predict a deceleration in revenue to 26% in 2026. Nonetheless, Innodata’s stock, currently around $45 per share, remains a significant recovery from its lows in 2024. With a P/E ratio of 48, it still has potential for further valuation improvement as its profitability increases.

Investment Considerations

While ASML and Innodata present enticing growth prospects, investors should conduct thorough research before investing. The Motley Fool’s Stock Advisor recently highlighted its top ten stock picks, excluding ASML, emphasizing the need for investors to remain informed about these emerging technologies and companies before making investment decisions. With growing demand for AI technologies, both companies could offer valuable investment opportunities that merit closer examination.

The content above is a summary. For more details, see the source article.