Top 10 Artificial Intelligence Stocks in India

Looking for Artificial Intelligence (AI) stocks in India? According to the State of the Education Report (2022), Artificial Intelligence Market in India is expected to grow at a CAGR of 20.2% to reach US$7.8 billion by 2025 from US$ 3.1 billion in 2020. India has a significant share in AI as the global market in this space is anticipated to reach US$422.37 billion by 2028.

A considerable number of start-ups are entering the space, and between 2000 and 2022, the number of AI start-ups has increased by 14X. Having said that, a handful of artificial intelligence stocks in India are changing the game. Here are ten such artificial intelligence stocks, the top AI company stocks per market capitalization, products, and services they offer.

What are AI Stocks in India?

AI Stocks can be classified as stocks of publicly traded companies involved in developing, implementing, or utilizing AI technologies. Such companies have specialization in various aspects of artificial intelligence, including machine learning, natural language processing, computer vision, robotics, and automation. Investing in AI stocks allows investors to participate in the growth of the AI industry, which is having a transformative impact on the various sectors of the economy.

Also Read: Top Semiconductor Stocks in India

The Indian AI Sector: An Overview

The artificial intelligence sector is rapidly evolving, from predictive AI to generative AI, and has opened new dimensions in the decision-making process and improved productivity. It will profoundly impact every sector of the economy and complement and supplement human intelligence.

In 2021, the global AI market was valued at nearly $60 billion and is projected to grow at a CAGR of 39.4% through 2028 to reach $422 billion. The India AI market is projected to grow at a CAGR of 20.2% to reach nearly $8 billion by 2025 from $3.1 billion in 2020. Also, the Indian AI sector will benefit from the Indian Semiconductor Mission (ISM), a major government push to increase electronics manufacturing in the country.

AI Stocks List: Top 10 Artificial Intelligence Stocks at a Glimpse

S.No.	Name	Closing Price (06-07-2024)	Market Cap Rs.Cr.	1Yr return %	5Yrs return %
1	TCS	4011.8	1451504.35	20.5	13.02
2	Infosys	1647.45	684025.93	23.85	18.08
3	HCL Technologies	1519.4	412314.27	31.25	23.94
4	Wipro	535.1	279866.09	35.18	14.93
5	LTIMindtree	5421.7	160570.89	6.01	27.14
6	Tech Mahindra	1461.35	142902.84	26.41	16.52
7	Oracle Fin.Serv.	10425.45	90400.98	173.89	26.51
8	Persistent Sys	4771.25	73501.11	97.59	73.11
9	L&T Technology	5125.4	54241.75	29.98	25.59
10	Tata Elxsi	7054.45	43932.6	-6.46	52.44

AI Stocks List: Top 10 Artificial Intelligence Stocks at a Glance

Discover the top 10 artificial intelligence stocks in India based on market capitalization, products, and services:

1. Tata Consultancy Services (TCS)

Tata Consultancy Services (TCS) stands out as a leader in the AI sector, with a current market price of Rs. 4011.8 and a market capitalization of Rs. 14,51,504.35 Cr as of 06-07-2024. Over the past year, TCS has delivered a return of 20.5% and a five-year return of 13.02%. The company’s AI solutions span predictive analytics, automation, and machine learning, aiding industries like financial services, healthcare, and retail in enhancing operational efficiency and customer experiences. Financially, TCS showcases robust health with a debt-to-equity ratio of 0.09, profit growth rate of 10.62%, sales growth of 6.85%, and a high ROE of 51.51%.

2. Infosys

With a market price of Rs. 1647.45 and a market cap of Rs. 6,84,025.93 Cr, Infosys has shown significant growth, yielding a one-year return of 23.85% and a five-year return of 18.08%. Financially, Infosys is stable with a debt-to-equity ratio of 0.09, profit growth rate of 8.49%, sales growth of 4.7%, and an ROE of 31.83%. Infosys’s AI capabilities, delivered through its Infosys Nia platform, support businesses in data analytics, machine learning, and AI-driven transformation, keeping them competitive in an evolving market. 

3. HCL Technologies

Having healthy financials, HCL Technologies maintains a debt-to-equity ratio of 0.13, profit growth rate of 7.23%, sales growth of 8.34%, and an ROE of 23.49%. HCL Technologies, trading at Rs. 1519.4 and boasting a market capitalization of Rs. 4,12,314.27 Cr, has offered substantial returns of 31.25% over one year and 23.94% over five years. HCL’s AI services, provided through its HCL AI & Automation platform, include AI-driven customer service, data analysis and generative AI, crucial for businesses aiming for operational excellence and innovation. 

4. Wipro

Wipro, priced at Rs. 535.1 with a market cap of Rs. 2,79,866.09 Cr, has seen a one-year return of 35.18% and a five-year return of 14.93%. Wipro’s AI services, especially through its Wipro AI360, cover cognitive computing, machine learning, and advanced analytics, enabling businesses to automate processes, enhance decision-making, and improve customer interactions. Financially, Wipro’s metrics include a debt-to-equity ratio of 0.22, profit growth rate of -4%, sales growth of -0.8%, and an ROE of 14.31%.

5. LTIMindtree

Financially, the company maintains a debt-to-equity ratio of 0.1, profit growth rate of 3.94%, sales growth of 7.03%, and an ROE of 25.03%. LTIMindtree, with a closing price of Rs. 5421.7 and a market capitalization of Rs. 1,60,570.89 Cr, has achieved moderate growth with a one-year return of 6.01% and a strong five-year return of 27.14%. LTIMindtree’s AI and analytics solutions include data analytics, machine learning models, and AI-driven business intelligence, helping organizations leverage AI for better decision-making and operational efficiency. 

6. Tech Mahindra

Tech Mahindra, with a market price of Rs. 1461.35 and a market cap of Rs. 1,42,902.84 Cr, has delivered solid returns of 26.41% over one year and 16.52% over five years. TechM amplifAI, has a huge suite of use cases from Digital workforce management to Generative AI. It supports all. Financially, the company’s metrics show a debt-to-equity ratio of 0.1, a profit growth rate of -51.2%, sales growth of -2.43%, and an ROE of 8.63%.

7. Oracle Financial Services Software Limited

Specializing in AI solutions for the financial sector,  Oracle Financial provides anti-money laundering, fraud detection, and customer experience management, essential for enhancing the security and efficiency of financial services. Financially, the company’s strong metrics include a debt-to-equity ratio of 0.01, profit growth rate of 22.88%, sales growth of 11.84%, and an ROE of 28.98%. Oracle Financial Services Software Limited, trading at Rs. 10425.45 with a market capitalization of Rs. 90,400.98 Cr, has witnessed a remarkable one-year return of 173.89% and a five-year return of 26.51%. 

8. Persistent Systems

Persistent Systems, priced at Rs. 4771.25 with a market cap of Rs. 73,501.11 Cr, has provided impressive returns of 97.59% over one year and 73.11% over five years. The company offers a wide range of AI and machine learning solutions across industries like BFSI, healthcare, and technology, enabling businesses to leverage AI for innovation and efficiency. Financially, Persistent Systems displays a debt-to-equity ratio of 0.09, a profit growth rate of 15.28%, sales growth of 17.62%, and an ROE of 23.99%.

9. L&T Technology Services

Financially, L&T Technology Services maintains a debt-to-equity ratio of 0.12, profit growth rate of 6.74%, sales growth of 9.72%, and an ROE of 25.79%. A driving factor behind it can be companies’ AI solutions, provided for manufacturing, automation, and healthcare sectors. With a market price of Rs. 5125.4 and a market capitalization of Rs. 54,241.75 Cr, L&T Technology Services has shown a one-year return of 29.98% and a five-year return of 25.59%. The company provides AI solutions for the industrial and manufacturing sectors, including predictive maintenance, smart manufacturing, and automation, optimizing operations and enhancing productivity. 

10. Tata Elxsi

Tata Elxsi, trading at Rs. 7054.45 with a market cap of Rs. 43,932.6 Cr, has faced a challenging year with a one-year return of -6.46% but boasts a strong five-year return of 52.44%. Tata Elxsi’s AI solutions cater to industries like video analytics, healthcare, automotive, and broadcasting. Their offerings include automated testing, deep learning, and predictive analytics, driving innovation and efficiency. Financially, the company’s health is reflected in its debt-to-equity ratio of 0.09, profit growth rate of 4.54%, sales growth of 12.96%, and an ROE of 34.47%.

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Why Invest in the Open AI Stock Industry in India?

As we read and talk, AI technologies are gradually making their way into our lives. It is driven by the need for efficiency, accuracy, and cost-effectiveness, which indicates its long-term sustainability. There are several reasons why the Open AI stock industry in India can be beneficial:

The AI industry is rapidly expanding, and investing in AI stocks exposes investors to it. Also, in the coming days, it will revolutionize the investing world with unmatched opportunities to make informed investment decisions.

And, with major tech companies investing heavily in developing AI technologies and a large talent pool, India has the potential to become a global leader in the AI market.

Factors to Consider Before Investing in AI Stocks in India

The AI sector is rapidly evolving in technology, with new and innovative platforms being released every other day. As a result, several factors must be carefully considered before investing in AI stocks in India.

Industry Trends: The world is rapidly transitioning from predictive AI to generative AI technologies. As a result, there is a rise in the development of AI platforms that allow people to customize powerful language models and develop their own mini chatbots that cater to their specific requirements. Consider how emerging trends impact various sectors and different companies’ growth prospects.

Technology and Intellectual Property: As new AI platforms come up every other day, claiming to be unique and capable of solving a variety of problem sets, evaluating a company’s AI technology and intellectual property portfolio becomes critical. Consider patents and proprietary algorithms to evaluate the platform’s competitive advantages.

Competitive Landscape: Generative AI has taken the world by storm, and every other technology company has significantly invested in its development. Before investing in AI stocks, evaluate the company’s market share, customer base, and competitive advantage that differentiate it from its peers.

Valuation: For companies and individuals, valuations are subjective. What may look reasonable or expensive to you might be cheap for others. Therefore, consider the company’s valuation relative to its growth prospects and peers in the industry.

Risks: In the world of technology, what is popular today may become redundant tomorrow. Identify the risks associated with investing in AI stocks, such as technological risks, regulatory risks, competition from other players, etc. Therefore, it is important to diversify your investments in AI stocks rather than focusing on picking the winning stock.

How to Invest in AI Stocks in India?

There are two ways through which you can invest in AI stocks in India, such as:

• Investing directly in AI stocks: You can purchase shares of publicly listed companies developing AI technologies.
• Index Funds or ETFs: Multiple mutual fund houses have created ETFs of global indices that have exposure to AI stocks. For example, Nasdaq 100 and S&P 500 indices have the most exposure to AI stocks. Investing in such instruments offers you broader exposure to AI stocks in the most efficient way.

Difference Between Artificial Intelligence and Robotics

Many people confuse artificial intelligence with robotics, but they are different and serve different purposes. For instance, in robotics, the hardware and software are designed and programmed to perform a specific task with precision millions of times without human assistance.

On the other hand, artificial intelligence is designed to copy the human mind that focuses on thinking, solving problems, and making decisions without specific human instructions. And AI can also train robots to perform specific tasks.

Wrapping up

The growth of AI is inevitable across the globe and similarly in the domestic market. Every business sector transforms with AI solutions; this is just the tip of the iceberg. Given the situation, artificial intelligence stocks in India are catching demand. As you can see, some stocks have even garnered over a thousand percent return in the past five years. However, before investing in any AI stock, you must evaluate the business and company’s performance in detail.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Frequently Asked Questions on Artificial Intelligence Stocks