Key Takeaways
- Grid Dynamics Ltd (GDYN) is evolving into a high-end enterprise AI engineering partner, with GDYN stock gaining attention as AI services exceed 25% of revenue.
- Telos Corporation (TLS) has reached a profitability inflection point, with TLS stock supported by strong TSA PreCheck expansion and government contract wins.
- Both Grid Dynamics and Telos operate in mission-critical layers of digital infrastructure—AI implementation and identity security.
- Analyst sentiment has turned bullish on GDYN and TLS, with price targets implying meaningful upside from recent levels.
Introduction
The next phase of digital transformation is no longer about testing artificial intelligence. It is about deploying AI securely at scale.
As enterprises and governments move from experimentation to execution, two infrastructure layers have become essential: the engineers who build AI-native systems and the identity platforms that protect them. This shift is drawing investor attention toward AI infrastructure stocks that sit beneath the hype cycle.
Among the companies gaining traction in this space are Grid Dynamics and Telos Corporation. One focuses on enterprise AI implementation. The other operates at the heart of cybersecurity and identity verification for government networks.
Together, they represent two sides of the same structural trend: secure digital execution.
What Are AI Infrastructure and Identity Security Stocks?
AI infrastructure stocks differ from consumer-facing technology names. Instead of selling apps or hardware, these companies provide the architecture, engineering, and security frameworks that allow AI systems to function reliably.
Enterprise AI services firms help corporations modernize data systems, migrate to cloud platforms, and deploy generative AI into production environments. Their revenue is tied to consulting, integration, and long-term digital transformation contracts.
On the security side, identity infrastructure companies focus on Zero Trust architectures, compliance platforms, and biometric verification systems. These tools ensure that only authorized users can access sensitive networks. The growing adoption of Zero Trust across federal and enterprise systems is outlined in the U.S. Cybersecurity & Infrastructure Security Agency (CISA) Zero Trust Maturity Model, which provides a framework for strengthening identity-driven security.
Unlike speculative AI software startups, these businesses often generate revenue from long-term contracts, recurring services, and mission-critical government relationships.
Why Investors Are Watching This Segment in 2026
Several macro trends are driving renewed interest in AI infrastructure stocks.
First, corporate IT budgets are stabilizing. After a period of cautious spending amid higher interest rates, enterprises are prioritizing ROI-driven AI investments. Companies are moving from pilot programs to full-scale deployments. This broader shift toward measurable AI returns is reflected in research from McKinsey’s State of AI report, which highlights how organizations are increasingly integrating AI into core business processes.
Second, geopolitical tensions are reinforcing government cybersecurity spending. Identity management and compliance platforms are no longer discretionary.
Finally, hyperscale cloud providers are consolidating partnerships, favoring elite engineering firms that can co-develop AI solutions. This creates a competitive moat for specialized players.
Within this context, Grid Dynamics and Telos Corporation stand out.
Key Drivers, Risks, and Industry Trends
AI adoption is entering a production phase. This benefits firms that specialize in complex integration rather than experimental tooling.
For AI engineering companies, hyperscaler partnerships and recurring enterprise contracts are key growth drivers. Margin expansion often follows once initial investment cycles mature.
For cybersecurity identity providers, federal contract wins and enrollment-based revenue models can accelerate top-line growth. However, these firms remain sensitive to government budget cycles.
Risks include client concentration, valuation volatility, and execution challenges during scale-up phases.
Investors evaluating this space should balance growth momentum with operational discipline.
Grid Dynamics Ltd (GDYN)
Grid Dynamics Ltd (GDYN) is a Silicon Valley-based digital engineering firm specializing in high-end cloud, data, and AI consulting.
The company focuses on complex transformation projects rather than routine IT maintenance. Its engineering-services model relies primarily on time-and-materials contracts.
Grid Dynamics generates revenue across several verticals, including retail and e-commerce, technology and telecommunications, and emerging areas such as finance and healthcare. AI-related services now account for more than 25% of organic revenue.
Financial Performance and Strategic Developments
GDYN reported record quarterly revenue of $104.2 million in late 2025, reflecting 19.1% year-over-year growth.
AI services expanded sequentially, signaling that enterprise demand is translating into billable engineering hours. Operationally, the company improved revenue per employee while maintaining a lean non-billable structure.
A key milestone came with its Preferred Vendor designation from a major global hyperscale cloud provider. This positions Grid Dynamics among a select group of elite AI transformation partners.
The company also launched an Nvidia Solutions Center to accelerate generative AI deployment across clients.
Valuation and Analyst Views
Grid Dynamics maintains a strong balance sheet with over $338 million in cash and no debt.
While GAAP margins remain tight, Non-GAAP EBITDA reached approximately $12.7 million, representing a 12.2% margin.
GDYN stock currently carries a “Strong Buy” consensus among analysts, with an average 12-month price target around $11.00. Some projections range higher, reflecting optimism around hyperscaler-driven growth.
Investment Suitability
Grid Dynamics may appeal to investors seeking exposure to enterprise AI implementation without manufacturing risk.
Key metrics to monitor include hyperscaler-related revenue, top customer concentration, and margin expansion toward the mid-teens.
As a high-beta AI services play, GDYN stock can be volatile, but it offers leveraged exposure to large-scale AI adoption.
Telos Corporation (TLS)
Telos Corporation (TLS) operates in cybersecurity and identity management, serving U.S. government agencies and enterprise clients.
The company has shifted toward higher-margin recurring revenue streams, with Security Solutions accounting for roughly 90% of total revenue.
Its offerings include biometric identity services such as TSA PreCheck enrollment, cyber-compliance software, and governance, risk, and compliance platforms.
Financial Performance and Strategic Developments
Telos delivered a significant turnaround in late 2025.
Revenue reached $51.4 million in Q3 2025, up 116% year-over-year. The company posted adjusted EPS of $0.09, far exceeding expectations.
Cash gross margins improved to 44.8%, reflecting a more favorable product mix.
TLS secured placement on the Missile Defense Agency SHIELD IDIQ contract vehicle, expanding its long-term government pipeline. It also renewed commercial cybersecurity engagements, demonstrating diversification beyond federal clients.
Valuation and Analyst Views
TLS stock trades at a Price-to-Sales ratio near 2.1x, below broader software industry averages.
Analyst sentiment has shifted to a “Buy” consensus, with a 12-month average price target near $7.75. Some projections extend higher, reflecting optimism around TSA PreCheck growth and backlog conversion.
The company has transitioned from cash burn to positive operating cash flow, strengthening its financial profile.
Investment Suitability
Telos may suit investors looking for a cybersecurity turnaround with government-backed revenue visibility.
Key variables include TSA enrollment volumes, backlog-to-revenue conversion from large contract vehicles, and continued margin expansion.
While past volatility warrants caution, TLS stock offers exposure to identity infrastructure within national security frameworks.
Investment Strategies for AI Infrastructure Investors
Long-term investors may view AI infrastructure stocks as foundational exposure to digital transformation rather than short-term trades.
Diversification across both engineering and cybersecurity layers can reduce reliance on a single growth driver.
Monitoring contract wins, analyst revisions, and margin trends can provide insight into execution quality.
Given valuation swings in emerging technology segments, risk-aware position sizing is essential.
Conclusion
Global digital systems no longer scale through experimentation. They scale on secure execution.
Grid Dynamics Ltd (GDYN) represents the engineering layer that turns enterprise AI ambition into operational reality. Telos Corporation (TLS) represents the identity and cybersecurity layer that protects those systems.
For investors evaluating AI infrastructure stocks in 2026, both companies offer differentiated exposure to mission-critical digital foundations. While each carries distinct risks, their improving financial momentum and structural tailwinds position them as notable participants in the next stage of secure AI adoption.