Artificial intelligence (AI) is an innovative technology that has become increasingly important in various industries. AI has the potential to transform businesses and improve efficiency, leading to significant growth opportunities for artificial intelligence company stocks in India. The growing importance of artificial intelligence stocks in India has also been reflected in the stock market, with AI stocks attracting investors’ attention. In this blog, we will explore the benefits, risks, and top AI stocks to invest in India.
The world is changing at an unprecedented speed. A decade one would think twice before watching an online high-resolution video, today we have self-driving electric cars entering the Indian markets and human intelligence-like machines and robots doing our work. This has also opened new opportunities for investors to jump in early into these prospects.
Top Artificial Intelligence Stocks in India
One way to invest in artificial intelligence shares in India is through traditional stock market investing. This involves researching individual companies and buying shares of stock directly.
AI stocks refer to stocks of companies that are involved in the development, implementation, or utilization of artificial intelligence (AI) technology. These are publicly traded companies listed on various stock exchanges, and investors can buy and sell their shares on the open market.
AI stocks are associated with companies that are at the forefront of AI research and innovation. These companies are developing AI-related products, services, and solutions that have the potential to disrupt traditional industries and drive significant growth in the technology sector.
AI technology encompasses various aspects, including machine learning, natural language processing, computer vision, robotics, and data analytics. Companies working in these areas and incorporating AI into their business strategies are often referred to as AI stocks.
Investing in AI stocks can provide investors with exposure to the growing AI industry and the potential for substantial returns if the companies’ technologies and products gain widespread adoption. However, it’s essential to conduct thorough research and consider factors such as the company’s financial health, competitive position, and growth prospects before making investment decisions.
Growth of the Artificial Intelligence Market in India
India is one of the countries with the largest internet user base, where around 76 cr. citizens have access to the internet. India could achieve this number due to government actions, new applications, commercial innovation and investments. With the increase in digital users, the artificial intelligence market is also growing at a good pace. In 2022, the Indian AI market size reached $680.1 mn. According to the International Market Analysis Research and Consulting Group (IMARC), this market is expected to touch $3,935.5 mn by 2028, with a CAGR of 33.28% in 2023-2028.
Examples of Companies Associat with AI Stocks
Some well-known examples of companies associated with AI stocks include:
- Alphabet Inc. (GOOG, GOOGL) – The parent company of Google is involved in various AI-related ventures, such as Google AI, DeepMind, and Waymo (self-driving cars).
- Microsoft Corporation (MSFT) – Microsoft invests heavily in AI and machine learning, incorporating AI technology into its products like Microsoft Azure and Cortana.
- Amazon.com, Inc. (AMZN) – Amazon uses AI in its e-commerce platform for product recommendations, logistics optimization, and more.
- NVIDIA Corporation (NVDA) – A leading provider of AI hardware, particularly graphics processing units (GPUs) used in AI computations.
- IBM (IBM) – IBM is involved in AI research, with projects like Watson, focusing on natural language processing and cognitive computing.
- Tesla, Inc. (TSLA) – Known for its electric vehicles, Tesla also develops AI software and hardware for its self-driving capabilities.
- Salesforce.com, Inc. (CRM) – Salesforce incorporates AI into its customer relationship management (CRM) platform with tools like Einstein AI.
Benefits of Investing in AI Stocks in India
Let’s have a look at some of the advantages of investing in artificial intelligence stocks in India.
Investing in AI stocks in India offers several benefits, including potential growth opportunities. AI is a rapidly growing industry, with a market size projected to reach USD 267 billion by 2027. As AI continues to transform industries such as healthcare, finance, and retail, companies that are leaders in AI technology are expected to experience significant growth.
Investing in artificial intelligence stocks in India can provide many benefits, including the potential for high growth and returns. The AI industry is still in its early stages, and there is a lot of room for growth. As more companies adopt AI technology, the demand for AI products and services will continue to rise, leading to increased profits and stock prices.
Another advantage of investing in artificial intelligence stocks in India is the potential for diversification. AI technology is used in various industries, including healthcare, finance, and retail, which means that investing in AI stocks can provide exposure to multiple sectors. This diversification can help reduce risk and provide stability to your investment portfolio.
Top Artificial Intelligence Stocks in India
Tata Elxsi Ltd
Tata Elxsi, the mid-cap stock from Tata Group, is into the design and development of computer hardware and software. The company operates in two segments – System integration and support and Software Development and Services.
The return on equity of Tata Elxsi is 37.23%, and for the last 5 yrs, the company’s debt-to-equity ratio has been 3.88%, while the industry average is 9.85%.
Kellton Tech Solutions
Founded in 1993 and based in Hyderabad, Kellton Tech Solutions is an information technology and outsourcing company.
The company provides services for digital transformation, digital connected enterprise, SAP, outsourced product development, and digital commerce and marketing.
They are focused on using AI to solve challenges that would otherwise take a lot of human intellect. The company does this by automating complex tasks helping businesses get more out of machines.
Tata Consultancy Services Limited (TCS)
TCS is a multinational IT services and consulting company. They have been actively involved in AI research and development, offering AI-driven solutions to various industries.
The small-cap IT company, Saksoft offers business intelligence, testing and software solutions across various industries and verticals. The company’s return on equity is 21.9%, and for the last 5 yrs, Saksoft’s debt-to-equity ratio has been 17.6%, while the industry average is 12.68%.
KPIT Technologies Limited
KPIT Technologies is a global technology company that focuses on providing digital transformation solutions. They have been involved in AI research and development, particularly in the automotive sector.
Founded in 1993 and based in Pune, Persistent Systems offers its clients secure and scalable mobile networking capability.
The company uses modern Wave Relay MANET technology for this purpose. The company uses AI to help companies improve and scale their operations, prioritize cases and design platform architecture.
Is AI a Good Stock to Buy?
AI as a revenue segment earns lesser income than the other larger divisions for tech companies in India. So investors hoping to enter a tech company in the hope of an AI boom must take this into account. There is not any listed stock in India that earns a majority of its revenues from an AI product.
Thus, at this point in time, investors should take a holistic approach to investing in companies instead of being solely focused on their AI capabilities.
Why should I invest in AI stocks?
AI stocks have the capability to transform unimaginable into reality. Therefore, they might give you immense returns if you have the risk to bet on hi-tech and AI based solutions. There is no doubt that AI stocks are emerging as one of the hottest new investment trends in years to come.
How can I invest in AI stocks in India?