Zacks Equity Research has spotlighted three mid-cap AI infrastructure stocks currently trading at discounts exceeding 45% from their 52-week highs, each carrying significant near-term upside potential.

The artificial intelligence frenzy remains intact as the AI infrastructure space stays rock solid, supported by what analysts describe as an extremely bullish demand scenario across global markets.

U.S. stock markets maintained their northward journey in 2026 after an astonishing rally over the prior three years, with strong performance primarily driven by a rejuvenated AI trade.

Innodata Inc. (NASDAQ: INOD), Calix Inc. (NYSE: CALX), and Applied Optoelectronics Inc. (NASDAQ: AAOI) are the three stocks identified, each currently carrying a Zacks Rank of 3, or Hold.

Innodata specializes in finding, cleaning, prepping, and labeling messy data so that generative, agentic, and physical AI models can mine and model it, with services extending into reasoning datasets, trust and safety, and model evaluation.

On January 29, 2026, Innodata entered into a partnership with Palantir Technologies Inc. (NYSE: PLTR) to provide data engineering and annotation capabilities supporting Palantir’s expanding AI platform deployments for event analytics.

Innodata has an expected revenue and earnings growth rate of 42.1% and 28.3%, respectively, for the current year, with its stock trading at a 50.4% discount to its 52-week high price.

The short-term average brokerage price target for Innodata represents an increase of 99.3% from the last closing price of $62.04, with targets ranging from $111 to $140, implying a maximum upside of 125.7%.

Calix continues to broaden customer relationships through its AI-native Calix One platform, adding 14 new customers during the second quarter of 2026 across residential, business, and MDU markets.

Remaining performance obligations for Calix reached $386.4 million in the second quarter of 2026, with management expecting AI-driven services and agentic capabilities to contribute more meaningfully during the second half of 2026 and beyond.

New Calix offerings including HomeOfficeIQ, SmartMDU, and expanded Wi-Fi 7 solutions increase opportunities to grow average revenue per subscriber and improve customer retention for service providers.

Calix has an expected revenue and earnings growth rate of 19.3% and 28.9%, respectively, for the current year, with its stock trading at a 47.7% discount to its 52-week high price.

The short-term average brokerage price target for Calix represents an increase of 67.4% from its last closing price of $37.24, with targets ranging from $52 to $85, implying a maximum upside of 128.2%.

Applied Optoelectronics is benefiting from an AI-driven optical upgrade cycle as 800G shipments scale and 1.6T products move toward volume production, serving data center, cable television, telecommunications, and fiber-to-the-home markets.

Applied Optoelectronics reported 800G revenue of $12.8 million in the second quarter of 2026, representing 11.9% of data center revenue and increasing more than tenfold year over year, with management expecting nearly fivefold sequential growth in the third quarter.

The company holds more than $200 million of 1.6T orders and management expects forecast demand for 800G and 1.6T products to exceed production capacity through mid-2027.

Applied Optoelectronics targets more than 650,000 manufacturing units per month by year-end 2026 and more than 930,000 units per month by year-end 2027, with more than half of 2027 output expected from Texas.

Applied Optoelectronics has an expected revenue and earnings growth rate of more than 100% each for the current year, with its stock trading at a 53.1% discount to its 52-week high price.

The short-term average brokerage price target for Applied Optoelectronics represents an increase of 49% from its last closing price of $109.64, with targets ranging from $109 to $220, implying a maximum upside of 110%.