So, you’re looking to invest in the best artificial intelligence stocks in India in 2024. Nice!
Investing in Indian artificial intelligence stocks for 2024 is all about promising potential. AI technologies move so fast across industries that businesses must innovate or transform themselves to keep up. This means change, and wherever there is big change, there is always the chance for making significant profits.
This, then, could be a great investment opportunity because of the fast-growing market for AI in India. But before investing, it only makes sense that you understand the market and its key players first, does it not?
This guide will help you get an all-around overview of the best AI stocks to invest in India. WeтАЩll give you a run-down of the best companies in this AI space, benefits to be gained by investing in this sector, the pitfalls to beware of, and tips for making smart and informed investment decisions. This guide will be useful for beginners and professional investors alike, with valuable insights into the world of AI stocks.
By the way, did you know that, as an Indian investor, you can invest in AI and other sectors in the USA as well? ThatтАЩs right!
Through Appreciate, IndiaтАЩs best online trading app, you can invest in any US stocks of your choice, sitting right here in India. Download the Appreciate App today and learn more about the exciting opportunities!
Also Read: How to Invest in US Stocks from India
Overview of the AI Industry in India
The artificial intelligence industry in India is on a steeply rising trajectory. At the same time, it is also in a state of transformation.
AI has already been brought in across sectors such as healthcare, finance, agriculture, retail, and manufacturing. These are the applications that bring increasing efficiencies through innovation and hence raise economic growth.
According to this report by NITI Aayog, AI has the potential to contribute $957 billion to India’s economy by 2035. The key reason behind this is the strong value proposition of AI technology.
In 2018, India invested around $665 million in AI, and the same is expected to grow much further to $11,781 million by the year 2025. This sector is likely to provide a big boost to the Indian digital economy with strong impetus coming from government initiatives and investments. Several of them have been taken up under the aegis of the National AI Strategy for building capacity and promoting AI adoption.
Among these are the big-name companies are Tata Consultancy Services, Infosys, HCL Technologies, and Wipro, who have been churning out AI solutions for the domestic and international markets. But interestingly, there are also a good number of start-ups, too, who have taken up more niche areas of AI applications. All these companies are contributing in different ways to the overall AI ecosystem in India.
The more widespread that the use of AI becomes, the more AI skills will also be developed by more people. This will, over time, create a deep pool of skilled labour that will join the workforce with the ability to drive company growth in the artificial intelligence space.
Other factors expected to drive this sector over the next several years include advances in data analytics and increased investments in technology infrastructure. The constant support by the government and private players will make the AI industry in India boom to a level that you, as an investor, should absolutely love.
Without further ado, letтАЩs get straight into the list of best AI stocks in India for 2024.
List of Top 20 AI Stocks in India in 2024
The table below shows the list of the 20 best AI stocks in India, based on various criteria such as market capitalisation, analyst ratings and dividend yields.
| Rank | Company Name |
| 1 | Tata Consultancy Services (TCS) |
| 2 | Infosys |
| 3 | HCL Technologies |
| 4 | Wipro |
| 5 | Tech Mahindra |
| 6 | Bosch |
| 7 | Oracle Financial Services Software |
| 8 | L&T Technology Services |
| 9 | Tata Elxsi |
| 10 | Zensar Technologies |
| 11 | Persistent Systems |
| 12 | Happiest Minds Technologies |
| 13 | Cyient |
| 14 | Coforge |
| 15 | KPIT Technologies |
| 16 | Affle India |
| 17 | RateGain Travel Technologies |
| 18 | Saksoft |
| 19 | KSolves India |
| 20 | Kellton Tech Solutions |
Best AI Stocks in India Based on Analyst Ratings
Analyst ratings provide insights into the potential growth and stability of a company based on comprehensive research and financial analysis. The following AI stocks in India have received high ratings from analysts in 2024, which makes them potentially attractive for investors looking to profit from the AI boom.
| Company Name | Analyst Ratings | ||
| Buy (%) | Hold (%) | Sell (%) | |
| Affle (India) | 67 | 22 | 11 |
| Zensar Technologies | 50 | 50 | 0 |
| Persistent Systems | 46 | 33 | 21 |
Affle India
Affle India is a top technology company in digital advertising solutions. It was established in 1994. The company aims to change traditional advertising to targeted recommendations using its AI-driven platforms.
Affle has two main segments: the enterprise platform and the consumer platform. The enterprise platform provides services like mobile app development and user engagement tools. The consumer platform focuses on targeted mobile advertising with personalised ad recommendations.
Affle India’s innovative approach and strong financial performance have earned it high ratings from analysts. The company’s commitment to using AI for digital advertising makes it a key player in the AI industry.
Zensar Technologies
Headquartered in Pune, Zensar Technologies is a global company specialising in end-to-end digital solutions and technology services. Incorporated in 1991, this company operates in four segments: advanced engineering, data engineering, analytics, and experience services.
Under the advanced engineering services segment, Zensar provides digital engineering, cloud strategy, AI, and ML services. In data engineering and analytics, the company offers automation, visualisation, and generative AI.
Zensar Technologies also has a strong focus on sustainability and is aiming to achieve net-zero GHG emissions by 2040. The company has its core strength in diversified service offerings and strategic AI initiatives, which has earned it positive ratings from most analysts.
Persistent Systems
Persistent Systems is a technology services company. It started in 1990 and focuses on software products and solutions. They offer services like cloud, infrastructure, customer experience transformation, application development, data analytics, and intelligent automation.
They are strong in banking, healthcare, and telecom. Their AI-driven services are innovative and get high ratings from analysts. The companyтАЩs steady financial performance and focus on AI make it a top choice for Indian investors in the AI sector.
Top AI Stocks in India Based on Market Capitalization
Market capitalization is one of the strongest indicators of a company’s stability and size. It represents the overall market value of the company’s outstanding shares, and provides investors a perspective on the size and market presence of the company.
Listed below are some of the top AI stocks in India by market cap.
Tata Consultancy Services (TCS)
Tata Consultancy Services is the one of the top companies in the world for IT services, consulting, and business solutions. TCS is headquartered in Mumbai, but it works in 46 countries delivering professional service to major banks, healthcare companies, and manufacturers. The company has developed a robust AI framework called Ignio, featuring machine learning, predictive analytics, and cognitive automation to better the operations of businesses. It helps to automate and optimise IT operations in large enterprises and helps in tremendous reduction of manual effort, increasing the overall efficiency.
TCS is actively involved in several AI projects, such as customer interaction-driven chatbots, predictive maintenance solutions for manufacturing, and intelligent automation of several business processes.
The company has had a string of years with robust financial performance and has maintained the position of market leader for several years now. TCS continues to make strong investments in AI research and development via partnerships with academic institutions and tech firms. Its strategic position in AI and digital transformation empowers TCS to become a significant player in not only India, but the global AI landscape.
Bosch
Bosch Limited Bosch is a leading company in technology and services, with its headquarters based in Bengaluru. It deals with industrial technology, mobility solutions, consumer goods, and other related services. Bosch is one of the subsidiary companies of Robert Bosch GmbH, a German multinational company.
The company has been heavily invested in the area of AI, to which deep learning, natural language processing, reinforcement learning, neuro-symbolic AI, and probabilistic modelling have all been called upon. For instance, since 2018, Bosch has filed more than 1,000 patents for innovation and research.
The AI activities at Bosch concern products and services in the respective industry sectors, from autonomous driving to smart manufacturing and intelligent home solutions. BCAI is one of the important facilities for integrating AI technologies into its products and services, thereby enabling higher efficiency and innovativeness. Due to its large market capitalization and scale of R&D activity, Bosch is, therefore, a major contributor in this field.
Oracle Financial Services Software
Oracle Financial Services Software (OFSS) is the subsidiary of the Oracle Corporation in the business of providing IT solutions to the entire sector of financial services. With its global head office in Mumbai, OFSS provides a full range of AI-enabled products and services from AML and financial crime compliance to core banking software and risk management. The jewel in the crown for this company is its product Oracle FLEXCUBE, which is the world’s most widely used core banking software by banks.
OFSS applies artificial intelligence technology to fine-tune financial processes and boost operational efficiency while enhancing compliance. The company is very strong in the marketplace, with a set of robust solutions for fraud detection, risk management, and automation of complex issues within financial systems.
L&T Technology Services
L&T Technology Services Limited is one of the leading global pure-play engineering services companies based out of Vadodara, India. The gamut of engineering and technology solutions offered by LTTS is driven by industry convergence in essentials, AI, professional collaboration, cross-industry domains and technologies, as well as services.
The companyтАЩs focus is on providing services related to products of industry, medical devices, transportation, telecommunications, and process industries. LTTS also provides design, analysis, prototyping, testing, and services regarding embedded system design.
The fact that the company actively takes part in AI conferences globally means that this aspect about its dedication to improving AI technology cannot be overstated. LTTS is working in collaboration with industry pioneers like NVIDIA (we all know about NVIDIAтАЩs recent growth spurt) towards developing scalable AI solutions for businesses worldwide.
The artificial intelligence initiatives of LTTS are based on intelligent automation, predictive maintenance, and smart manufacturing. L&T Technology Services remains a market leader in the field of artificial intelligence, as proven by both its high market capitalisation and superior levels of successfully delivered innovative solutions.
Tata Elxsi
Tata Elxsi is a leading global design and technology services firm operating out of Bengaluru, India. It is specialised in artificial intelligence and digital transformation, besides serving diverse sectors such as automotive, broadcast, communication, health care, and transportation. These, clubbed with their high market capitalization and innovative AIR solutions, place them among the leaders in the industry.
The company offers AI-powered product design, development, and deployment services. Tata Elxsi powers product design workflows with generative AI, making your design process more efficient and creative. Its prime focus lies in AI solutionsтАФstarting with autonomous driving systems, predictive maintenance, up to AI-powered health care diagnostics.
Elxsi has made it possible to collaborate with most world-leading brands to provide them with cutting-edge AI technologies and solutions. The company has managed to maintain a focused strategy on innovation and digital transformation, thereby enabling it to grow into a big player in India’s AI landscape.
Best AI Stocks Based on Dividend Yield
The Dividend Yield measures the ratio of a company’s annual dividend payout per share to its share price. Both new and seasoned investors often look at the dividend yield of a stock when they want a regular income from their investment in addition to the capital appreciation.
The following AI stocks in India have been selected based on their attractive dividend yields, making them appealing to income-seeking investors.
HCL Technologies
HCL Technologies is a leading IT services company based in Noida, India. The company provides a wide range of services, including software development, business process outsourcing, and IT infrastructure services. HCL Technologies has been investing heavily in AI to enhance its service offerings, particularly through its AI platform, DRYiCE, which automates and optimises IT operations.
The company has consistently made dividend payouts to investors and has maintained strong financial performance over the years. and consistent dividend payments make it an attractive option for investors. It also has a healthy dividend yield, so it is clear that the company is committed to returning value to shareholders.
Infosys
Infosys is one of India’s largest IT services companies, headquartered in Bengaluru. The company provides a wide range of services, including consulting, technology, and outsourcing, to clients all around the world. Infosys has been at the forefront of adopting AI technologies, integrating AI into various aspects of its business through its Infosys Nia platform.
Infosys has maintained a strong track record of financial stability and health. It has also consistently paid dividends to its shareholders. The company’s attractive dividend yield, coupled with its leadership in AI innovation, makes it a compelling choice for investors.
Tech Mahindra
Tech Mahindra is a multinational IT services company based in Pune, India. The company provides IT and business process outsourcing services to various industries, including telecommunications, healthcare, and finance. Tech Mahindra has been leveraging AI to develop innovative solutions, such as its AQT (AI-based Quality Transformation) platform, which improves software testing and quality assurance processes.
Tech Mahindra’s consistent financial performance and regular dividend payments make it an attractive option for income-seeking investors. The company’s strong dividend yield and commitment to AI innovation position it well in the market.
Wipro
Wipro Limited is a leading global information technology, consulting, and business process services company headquartered in Bengaluru. Wipro leverages AI to offer innovative solutions in areas such as healthcare, financial services, and energy. The companyтАЩs AI platform, Wipro HOLMES, provides a range of services, including cognitive process automation, predictive analytics, and machine learning. HOLMES is designed to enhance business processes, improve decision-making, and drive operational efficiency.
Wipro’s AI initiatives include developing intelligent chatbots to improve customer service, automating IT operations to reduce downtime, and enhancing cybersecurity measures to protect against threats. Wipro’s commitment to AI-driven innovation and its strategic investments in AI research and development position it as a key player in the AI sector. The company’s collaborations with leading tech firms and participation in global AI conferences further strengthen its market position.
KPIT Technologies
KPIT Technologies Limited, based in Pune, specialises in providing engineering and IT services to the automotive and transportation sectors. The company focuses on AI and digital transformation to enhance vehicle performance, safety, and user experience. KPITтАЩs AI initiatives include developing autonomous driving technologies, smart mobility solutions, and AI-based diagnostics to improve vehicle reliability and efficiency.
KPIT Technologies collaborates with leading automotive manufacturers worldwide to deliver cutting-edge AI solutions. The companyтАЩs AI-driven platforms help optimise vehicle design, manufacturing processes, and in-vehicle experiences.
The companyтАЩs commitment to innovation and continuous investment in AI research make it a notable player in the AI landscape. KPITтАЩs strategic partnerships with tech giants and involvement in global automotive AI projects underscore its leadership in the industry.
Coforge
Coforge Limited, formerly known as NIIT Technologies, is a global IT solutions organisation headquartered in Noida. The company provides AI-driven solutions in areas such as travel, insurance, banking, and healthcare. CoforgeтАЩs AI initiatives include developing intelligent automation solutions to streamline business processes, enhancing customer experiences with AI-driven chatbots, and optimising operations with predictive analytics.
Coforge operates in more than 20 countries. The company’s strong market presence is bolstered by its focus on innovation and digital transformation. Coforge leverages AI to help businesses improve efficiency, reduce costs, and enhance service delivery. The company’s collaborations with industry leaders and participation in AI research projects highlight its commitment to advancing AI technologies. CoforgeтАЩs ability to integrate AI into its offerings positions it as a significant player in the AI industry.
Cyient
Cyient Limited, which is headquartered in Hyderabad, is a global engineering and technology solutions company. The company provides AI-driven solutions in data analytics, digital transformation, and product engineering. CyientтАЩs AI initiatives include predictive maintenance for industrial equipment, smart manufacturing solutions to enhance production efficiency, and AI-based analytics to provide actionable insights across various industries, including aerospace, defence, and healthcare.
The companyтАЩs commitment to leveraging AI for innovative solutions has earned it a strong market position. Cyient partners with leading tech companies to develop AI applications that drive operational excellence and improve business outcomes. The company’s focus on integrating AI technologies into its service offerings ensures it remains at the forefront of the AI revolution. CyientтАЩs strategic investments in AI research and development underscore its dedication to innovation and growth.
Happiest Minds Technologies
Happiest Minds Technologies Limited, based in Bengaluru, provides digital transformation and IT services. The companyтАЩs AI initiatives focus on intelligent automation, advanced analytics, and IoT solutions. Happiest Minds utilises AI to streamline business processes, enhance user experiences, and foster innovation in sectors such as retail, healthcare, and education.
The companyтАЩs strong market presence is bolstered by its innovative approach to integrating AI into digital transformation projects. Happiest Minds’ AI-driven solutions help businesses automate repetitive tasks, gain deeper insights from data, and improve operational efficiency. The company’s focus on sustainability and ethical AI practices further enhances its reputation in the market. Happiest MindsтАЩ ability to deliver cutting-edge AI solutions positions it well for future growth and success in the AI industry.
RateGain Travel Technologies
RateGain Travel Technologies Limited, headquartered in Noida, provides AI-driven solutions for the travel and hospitality industry. The companyтАЩs AI initiatives include revenue management systems, dynamic pricing models, and customer experience optimization tools. RateGainтАЩs AI-powered platforms help travel companies enhance operational efficiency, maximise revenue, and provide personalised experiences to customers.
The company’s focus on AI-driven innovation has made it a key player in the travel technology sector. RateGain collaborates with leading airlines, hotels, and travel agencies to implement AI solutions that transform their business operations. The company’s commitment to research and development ensures it stays ahead of industry trends and continuously improves its AI offerings. RateGain’s strategic partnerships and strong market presence position it well for future growth and success.
Saksoft
Saksoft Limited, based in Chennai, specialises in providing digital transformation services and solutions. The companyтАЩs AI initiatives include intelligent automation, data analytics, and cloud-based solutions. Saksoft leverages AI to enhance business processes, improve customer experiences, and drive operational efficiency across various industries, including banking, healthcare, and logistics.
The company’s strong market presence and commitment to AI-driven innovation have positioned it as a notable player in the AI industry. Saksoft’s AI-driven platforms help businesses automate complex tasks, derive insights from large datasets, and improve overall performance. The company’s strategic investments in AI research and development ensure it remains competitive and continues to deliver value to its clients. SaksoftтАЩs ability to integrate AI into its digital transformation services positions it well for future growth.
KSolves India
KSolves India Limited, headquartered in Noida, provides software development and IT solutions. The companyтАЩs AI initiatives include AI-based software development, data analytics, and cloud computing solutions. KSolves leverages AI to develop innovative software solutions that enhance business processes, improve customer experiences, and drive operational efficiency.
The company’s focus on AI and its contributions to the software development industry make it a significant player in the AI landscape. KSolves collaborates with clients across various sectors to deliver AI-driven solutions that address complex business challenges. The company’s commitment to research and innovation ensures it stays at the forefront of AI technology. KSolves’ strategic focus on integrating AI into its software development services positions it well for future growth and success.
Kellton Tech Solutions
Kellton Tech Solutions Limited, based in Hyderabad, provides digital transformation and IT services. The companyтАЩs AI initiatives include intelligent automation, data analytics, and IoT solutions. Kellton Tech leverages AI to enhance business processes, improve customer experiences, and facilitate innovation across different industries, including manufacturing, retail, and energy.
The company’s strong market presence and commitment to AI-driven solutions make it a notable player in the AI industry. Kellton Tech’s AI-driven platforms help businesses automate tasks, gain insights from data, and improve operational efficiency. The company’s strategic focus on research and development ensures it continues to deliver cutting-edge AI solutions. Kellton TechтАЩs ability to integrate AI into its digital transformation services positions it well for future growth and success.
Benefits of Investing in AI Stocks
AI Stocks Have Significant Growth Potential
AI technology is rapidly advancing and being adopted across various industries. This widespread adoption drives significant growth potential for AI companies. By investing in AI stocks, you position yourself to benefit from this technological revolution. Companies leading in AI innovation are likely to see substantial revenue growth and market expansion.
Investing in AI Can Help Diversify Your Portfolio
Adding AI stocks to your investment portfolio can provide valuable diversification. AI companies operate in multiple sectors, including healthcare, finance, retail, and manufacturing. This diversification can mitigate the overall risk in your portfolio.
AI is Crucial for Technological Innovation
AI will be the cornerstone of technological innovation in the future, and AI companies will be driving this change. By investing in these companies, you support and benefit from cutting-edge advancements in machine learning, natural language processing, and automation. These innovations not only drive business growth but also contribute to societal progress.
AI Increases Efficiency and Productivity in Businesses
AI technologies enhance efficiency and productivity across various business operations. Companies that leverage AI can streamline processes, reduce costs, and improve decision-making. Investing in AI stocks means you are backing businesses that are likely to perform better and deliver higher returns due to these efficiencies.
AI Provides a Competitive Market Advantage
Companies that effectively implement AI technologies gain a competitive edge. This advantage comes from improved products, services, and customer experiences. By investing in AI stocks, you align yourself with companies poised to outperform their competitors and capture larger market shares.
AI Stocks Offer Long-Term Growth Prospects
AI is not just a passing trend; itтАЩs a transformative technology with long-term growth prospects. As the technology improves, its use cases and industry applications will also increase. If you invest now, you could be in a position to benefit from sustained growth as AI continues to evolve and grow. This long-term perspective can lead to significant returns over time.
By the way, did you know that, as an Indian investor, you can invest in AI and other sectors in the US as well. ThatтАЩs right!
Through IndiaтАЩs no.1 online trading app Appreciate, you can invest in any US stocks of your choice, be it Apple, Microsoft, Amazon or any other companies.
Risks of Investing in AI Stocks
While investing in AI stocks offers numerous benefits, it is also important to consider the associated risks. Here are some key risks you should be aware of:
Market Volatility Affects AI Stocks
AI stocks, like all technology stocks, can be highly volatile. Market volatility can significantly impact not only the value of your investments, but also your propensity to hold on to your investments during times of turmoil. Economic downturns, changes in market sentiment, or sudden technological advancements can cause significant price fluctuations. It’s important to be prepared for this volatility and to have a long-term investment strategy.
Rapid Technological Advancements Pose Risks
While AI will help drive growth and innovation, the rapid advancements in technology also means that today’s leading AI technology can quickly become obsolete. Companies must continuously innovate to stay competitive. Investing in AI stocks requires you to keep a close watch on technological trends and the company’s ability to adapt and innovate.
High Competition in the AI Sector
The AI sector is growing but is also highly competitive, and numerous companies are fighting each other for more market share. High competition can impact a company’s profitability and market position. New entrants with breakthrough technologies can disrupt established players. It’s crucial to evaluate a company’s competitive edge as that will indicate its ability to maintain or even grow its market share.
Regulatory Changes Can Impact AI Companies
Government regulations play a significant role in the AI industry. Changes in data privacy laws, security regulations, or ethical standards can affect AI companies’ operations and profitability. Staying informed about regulatory changes and evaluating their impact on the companies you invest in is essential for managing this risk.
Ethical and Social Concerns
Ethical and social concerns are becoming increasingly prominent in the AI industry. Issues like data privacy, algorithmic bias, and job displacement due to automation can affect a company’s reputation and lead to regulatory scrutiny. Companies that do not address these problems may face legal challenges and loss of consumer trust.
Dependency on Skilled Workforce
AI companies rely heavily on a skilled workforce to develop and implement AI technologies. There is a global shortage of specialised talent in AI, which can limit a company’s ability to innovate and grow. Though, with time, as people gain more skills in AI, this shortage should reduce, but companies will have to focus on attracting and retaining top talent to be better positioned for success, but those that struggle with talent acquisition may face operational challenges.
Conclusion
Investing in AI stocks has the potential to generate excellent returns over the next few years. But you need to be careful about the stocks you invest in, and be sure to invest for the long term. Just like the tech sector, of which AI is a subset, this is a rapidly evolving industry, so there are bound to be periods of extreme volatility. You will need to hold on during these periods to enjoy the periods of extreme growth.
To deal with the periods of extreme volatility, consider diversifying your portfolio, thematically as well as geographically, by investing in other industries in India, as well as in US stocks. This will help you with risk mitigation and optimise your portfolio for long term growth. Also understand the market trends using fundamental and technical analysis before investing.
Frequently Asked Questions about AI Stocks in India
What are the top 3 AI stocks to buy in 2024?
The top 3 AI stocks you can consider buying are Tata Consultancy Services (TCS), Infosys, and HCL Technologies. These companies are leaders in the AI industry, with strong financial performance and significant investments in AI technologies. They offer innovative AI solutions across various sectors, making them attractive options for investors looking to capitalise on the AI boom.
However, this information does not constitute any investment advice. Please do your own research before buying any stocks.
Is it a good time to invest in AI stocks in India?
Yes, it is a good time to invest in AI stocks in India. The AI industry is growing rapidly, with increasing adoption across various sectors. The Indian government is also promoting AI development through various initiatives and investments.
However, please conduct thorough research and consider the associated risks before investing.
Who should invest in AI shares in India?
AI shares in India are suitable for investors who:
- Have a long-term investment horizon.
- Are willing to accept higher volatility for potentially higher returns.
- Have a keen interest in technology and innovation.
- Are looking to diversify their investment portfolio with exposure to cutting-edge technologies.
Disclaimer
The information provided in this article is for educational and informational purposes only. It should not be considered as financial or investment advice. Investing in stocks involves risk, and it is important to conduct your own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any financial losses or gains that may result from the use of this information.
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