The Zacks Analyst Blog Highlights Innodata, Five9 and UiPath

Zacks.com's Analyst Blog from October 21, 2025, recommends three mid and small-cap AI infrastructure stocks—Innodata Inc. (INOD), Five9 Inc. (FIVN), and UiPath Inc. (PATH)—as "Strong Buys" (Zacks Rank #1) for potential gains in 2026, citing their strong positioning in the booming AI sector. Innodata is highlighted for its data engineering services and new GenAI testing platform, projecting significant revenue and earnings growth. Five9 is noted for its AI-powered contact center solutions and strategic tech partnerships, while UiPath is recognized for its automation platform with embedded generative AI features. All three companies are presented as key beneficiaries of increasing AI infrastructure spending, with each forecasting solid financial expansion.

Analysis

The Zacks Analyst Blog highlights Innodata (INOD), Five9 (FIVN), and UiPath (PATH) as "Strong Buy" (Zacks Rank #1) mid and small-cap AI infrastructure stocks, projecting significant gains for 2026. This bullish outlook is driven by an "extremely bullish demand scenario" and "huge spending" in the AI sector, indicating a robust growth environment for foundational AI services. The overall sentiment is strongly positive (0.85) and bullish, reinforcing the optimistic investment thesis for these AI-centric firms.

Innodata, a data engineering provider, is expected to benefit from long-term demand for LLM building and maintenance, supported by its new GenAI Test and Evaluation Platform built on NVIDIA's NIM microservices. The company forecasts 42.8% current-year revenue growth and 46.6% next-year earnings growth, with recent positive revisions to earnings estimates.

Five9, a contact center software provider, is experiencing growth from subscription and Enterprise AI revenues, leveraging strategic partnerships with Google Cloud, Salesforce, and Microsoft for its intelligent CX platform. UiPath, an automation platform, is enhancing its offerings with generative AI features like specialized LLMs, showing strong current-year earnings growth of 22.6% and significant estimate upgrades.

The article underscores the transformative impact of AI infrastructure spending across diverse fields over the next five years, suggesting sustained tailwinds for these companies. Each company demonstrates specific product developments and strategic alignments positioning them to capitalize on this market expansion.

Key Decisions for Investors

• Investors should consider initiating or increasing positions in mid and small-cap AI infrastructure stocks like INOD, FIVN, and PATH, aligning with their Zacks #1 Strong Buy ratings and strong growth forecasts.
• Monitor the successful rollout and adoption of new AI-specific platforms and features, such as Innodata's GenAI Test and Evaluation Platform and UiPath's specialized LLMs, as these are critical for sustaining competitive advantage and growth.
• Assess the long-term sustainability of high AI infrastructure spending and the evolving competitive landscape, particularly for companies whose growth is tied to partnerships with larger technology giants.