Best Artificial Intelligence Stocks in India

Investing in artificial intelligence (AI) stocks can be a lucrative but also challenging endeavour. AI is a transformative technology that has the potential to disrupt various industries, and many investors are interested in capitalising on its growth. AI has the potential to disrupt various industries and create significant value, making it an attractive option for many investors.

Investing in artificial intelligence (AI) stocks can offer several potential benefits. Still, it’s important to remember that all investments carry risks, and you should conduct thorough research and consider your financial goals and risk tolerance before making any investment decisions. Let us now have a look at the best AI stocks in India.

Top 5 AI Stocks in India

Note: The above stocks have been filtered on the basis of market capitalisation as of January 03, 2024.

• Persistent Systems Ltd

Persistent Systems Limited is involved in the business of building software products. It offers complete product life cycle services. The company has its own software and frameworks with pre-built integration and acceleration. In addition, it has partnerships with providers such as Salesforce and AWS.
Key Metrics:

• ROE: 25.3%
• ROCE: 30.3%
• Profit Growth CAGR (5Y): 25%

• L&T Technology Services Ltd

L&T Technology Services Ltd provides design, analysis, prototyping & testing, embedded system design, manufacturing engineering and engineering process support using cutting-edge CAD / CAM / CAE technology in various domains. The company’s customer base includes 69 Fortune 500 companies and 53 of the world’s top ER&D companies. The company’s business also provides digital engineering advisory services.

Key Metrics:

• ROE: 25.0%
• ROCE: 32.6%
• Profit Growth CAGR (5Y): 18%

• Tata Elxsi Ltd

Tata Elxsi Limited is involved in designing and developing computer hardware and software. It operates in two segments: System integration & support and Software Development & Services.

The Embedded Product & Design segment derives the majority portion of revenue. Under this segment, the company provides technology consulting, new product design, development and testing services for various sectors like automotive, broadcast, consumer electrics, healthcare, telecom and transportation industries. The Industrial Design & Visualization segment derived 11.3% of the total revenue of Q2 FY 2024. System Integration & Support division generated 2.7% of Q2 FY 2024 revenues.

Key Metrics:

• ROE: 41.1%
• ROCE: 47.7%
• Profit Growth CAGR (5Y): 26%

• Oracle Financial Services Software Limited

Oracle Financial Services Software Limited provides IT solutions to the financial services industry. It offers a suite of banking products catering to the needs of corporate, retail, investment banking and treasury operations. Oracle Financial Services Software Limited is a subsidiary of Oracle Global (Mauritius) Limited.

Key Metrics:

• ROE: 24.8%
• ROCE: 35.1%
• Profit Growth CAGR (5Y): 8%

• Cyient Ltd

Cyient Limited is involved in providing software-enabled engineering and geographic information system (GIS) services. The business segments include Data & Network Operations, Engineering, Manufacturing, Industrial Products and Product Realisation.

Key Metrics:

• ROE: 16.6%
• ROCE: 18.8%
• Profit Growth CAGR (5Y): 6%

Benefits of Investing in AI Stocks

• Growth Potential: AI is a rapidly growing industry with the potential to disrupt various sectors, including healthcare, finance, retail, and more. As AI technology continues to advance and gain wider adoption, companies involved in AI development and deployment may experience significant growth.
• Diversification: Investing in AI stocks can provide diversification for your investment portfolio. AI companies span various industries, so by investing in them, you can potentially reduce your overall portfolio risk.
• Innovation: AI companies are often at the forefront of technological innovation. Investing in these companies allows you to participate in and potentially profit from cutting-edge developments in artificial intelligence, machine learning, and data analytics.
• Increased Efficiency and Productivity: Many businesses adopt AI technologies to improve efficiency and productivity. Investing in companies that provide AI solutions to businesses can lead to increased revenue and profitability as these businesses become more efficient.
• Competitive Advantage: The companies that successfully implement AI can gain a competitive advantage in their respective markets. Investing in such companies may result in higher stock prices as they outperform their competitors.
• Long-Term Growth Potential: AI is still in its early stages, and its impact on various industries is expected to continue growing in the coming years. Long-term investors may benefit from holding AI stocks as the technology matures and becomes more integrated into everyday life.

Conclusion

Investing in AI stocks can offer significant growth potential and diversification benefits for your portfolio, but it also comes with risks. It’s essential to carefully assess individual companies, stay informed about industry trends, and consider your investment goals and risk tolerance when investing in AI stocks or any other asset class. If the above stocks interest you, open a demat account with Angel One today for a hassle-free process.

Disclaimer: This article is written for educational purposes only. The securities quoted are only examples and not recommendations.