Top 10 Ai Stocks in India 2024

The artificial Intelligence market in India is anticipated to grow by 25%-35% between 2024 and 2027 reaching nearly $17 billion by the end of this period. Artificial Intelligence or AI has been the talk of the world for the last few years and is gaining more popularity daily.

While a set of people curse this innovative technology, the others are highly in awe of the technology. As the market is growing for this tech, the artificial intelligence stocks in India are also gaining traction and can be a good investment option, especially for people interested in investing in the technology sector.

This article will delve into the top artificial intelligence stocks in India and talk about the things investors should consider before investing in these stocks, and benefits of investing in these stocks, and more.

What are Artificial Intelligence Stocks?

Artificial Intelligence can be defined as an innovative technology that is used to replicate human intelligence, to make things easier for humans. This is a technology, which helps in automating operations with minimal human interference. There are multiple facets of AI, which include natural language processing, machine vision, speech recognition, and a lot more. So, AI stocks can be referred to the companies that are dealing in AI technology. In every sector be it manufacturing, banking and finance, and even in the healthcare sector, AI has started penetrating. Thus, if you are keen on investing in technology stocks in the long run, these artificial intelligence stocks can offer good opportunities.

Top 10 AI Stocks to Invest in India

As you can see in the table above, these are the top ten artificial intelligence stocks in India as per market capitalization and returns they have been providing over the years. Here are the details of these AI stocks in India –

• Bosch Ltd.: Bosch is a renowned name in the technology industry in India. Though it is a German multinational company dealing in engineering and technology, its Indian subsidiary has a predominant market share. Bosch offers services such as automation, industrial technology, and technology products for consumers. The share price of Bosch increased by around 56.58% in the past year while its market capitalization stands at ₹86577.11 crores.
• Persistent Systems Ltd.: The next stock for ai is Persistent Systems, which started in India and now has spread its wings into different nations becoming a multination entity. This company mainly deals in different software product development, integration of those products and services, and support services. The main clients of Persistent Systems are in the healthcare industry, telecommunications, life science, and financial services. Some of the advanced services that the company offers include enterprise mobility, digital transformation, cloud computing, and cybersecurity. In the past year, the stock price zoomed 56.85% with a market capitalization of ₹53630.20 crores.
• Oracle Financial Services Software Ltd.: Oracle is a known name when it comes to financial services. Oracle Financial Services Software Ltd. is a designated company under the Oracle Corporation, which delivers financial technology solutions to different financial service providers across the globe. Its clientele includes retail and corporate banks, financial crime detection, risk and finance departments, compliance management, and more. The current market capitalization of the company is around ₹64337.80 crores and it delivered a whopping 116.87% return in the past year.
• Tata Elxsi Ltd.: Tata Elxsi is the segment of Tata Group, which deals in advanced technology, Artificial intelligence, machine learning, automation, and others. It has a market capitalization of ₹46541.99 crores and it delivered a 19.07% return in the past year. The clients of Tata Elxsi are mainly in healthcare, communications, broadcast, and automotive.
• Cyient Ltd.: Earlier known as Infotech Enterprise Ltd., this company started its journey in the year 1991. Cyient Ltd. primarily engages in geospatial engineering, data analytics, and other IT solutions. It offers its services across the globe while its headquarters is in India. The current market capitalization of the firm stands at around ₹21505.42 crores and its share price surged 64.94% in the past year.
• Affle (India) Ltd.: This tech company has been revolutionizing the world of artificial intelligence with its latest technology offerings. The current market capitalization of the firm stands at around ₹14870.57 crores. The company has also been quite profitable in the past year where its revenue has grown significantly. Its share price zoomed 17.35% in the past year too.
• Zensar Technologies Ltd.: With a market presence of over fifty years, this tech firm has been a leading player in the technology industry, especially when it comes to digital solutions and technology services. It has major partnerships with multiple international firms such as Fujitsu in Japan, the UK's ICL, and Northern Telecom in Canada. Zensar is known for its digital transformation services and currently, it has a market capitalization of ₹13042.74 crores, and its shares have delivered a massive 111.36% return in the past year.
• Happiest Minds Technologies Ltd.: When it comes to augmented intelligence, image analytics, AR, VR, and similar technology these days, one of the leading names in this segment is Happiest Minds Technologies Ltd. The tech firm has been undergoing an administrative shift, which is dragging its returns down nowadays; however, the potential of the firm is noteworthy. The current market capitalization is ₹12348.73 crores and its shares have delivered 1.85% only in the past year.
• Kellton Tech Solutions: Kellton Tech is a leading tech firm, which is also one of the top artificial intelligence stocks in India. It offers services, which include Digital Experience, AI, ML, Product Engineering, Cloud Engineering, Data Science Engineering, and NextGen services. Kellton has clients from different industries which include Retail, Travel, Hospitality, Manufacturing, Chemicals, automotive, fintech, banking, healthcare, and more. The current market capitalization of the firm is ₹983.85 crores and it delivered a whopping 94.28% return in the past year.
• Saksoft: This tech firm mainly deals in AI-based end-to-end services, which involve AI consulting, ML Development, data mining, NLP-powered aspect-based sentiment analysis, and more. The market capitalization of Saksoft is currently around ₹2871.50 crores and in the last year, the share price of the firm zoomed 55.67%.

Advantages of Investing in AI Stocks

• Exponential Growth Potential: The first advantage of investing in these ai stocks in India includes the growth potential of these stocks. Since India is adopting digitalization, and there is huge room for the same now, the growth of these tech firms is inevitable. Therefore, investing in these future-led tech firms can be beneficial in the end.
• Diversification: Since these firms offer new-age technology, people looking to invest in the tech sector do not have to go for only traditional technology companies. These stocks can add diversification to the portfolio as well.
• Excellent Returns: As you can see in the table given above, many of these top artificial intelligence stocks delivered excellent returns in just one-year time. Some of the firms have even triple-digit returns, which is astonishing.
• Fundamentals: As AI companies are usually new, the investors need to look at the financials and fundamentals of the company. It is important to check whether the company is using the resources optimally or not, their growth prospect, and research and development. All these help in understanding the potential of the ai stock in India.
• Clientele: Another important factor that investors must check is the diversity in the clientele of the company. It is better to have clients from different sectors rather than from a single sector.
• Partnerships: One can also evaluate the partnerships that AI companies have to understand the value of the company.
• Excessive competition: IT and tech companies are growing like mushrooms all over the country. Thus, the competition in this space is too high. For an investor, it is crucial to understand the ‘X’ factor of a company before investing in it.
• Changing Preferences: As technology advances every day, the preferences of consumers also evolve quickly and this is something you need to consider while investing in artificial intelligence stocks.
• Highly volatile: As most of the artificial intelligence stocks are of new companies, they are in their growing stage, and thus they are super volatile.

Things to Consider Before Investing in AI Stocks

• Fundamentals: As AI companies are usually new, the investors need to look at the financials and fundamentals of the company. It is important to check whether the company is using the resources optimally or not, their growth prospect, and research and development. All these help in understanding the potential of the ai stock in India.
• Clientele: Another important factor that investors must check is the diversity in the clientele of the company. It is better to have clients from different sectors rather than from a single sector.
• Partnerships: One can also evaluate the partnerships that AI companies have to understand the value of the company. 

Risks Involved While Investing in AI Stocks

• Excessive competition: IT and tech companies are growing like mushrooms all over the country. Thus, the competition in this space is too high. For an investor, it is crucial to understand the ‘X’ factor of a company before investing in it.
• Changing Preferences: As technology advances every day, the preferences of consumers also evolve quickly and this is something you need to consider while investing in artificial intelligence stocks.
• Highly volatile: As most of the artificial intelligence stocks are of new companies, they are in their growing stage, and thus they are super volatile. 

Conclusion

Investing in artificial intelligence stocks can be fruitful for the future given the rise in AI and technology and it is not going anywhere in the near future. However, as an investor, you have to evaluate certain things before putting your money into these ai stocks so that you choose the right stock that can offer great returns.