In recent months, chipmaker NVIDIA has significantly increased shareholder investments. Since the start of 2023, NVIDIA’s stock has increased 517% due to the surge in interest in artificial intelligence (AI). Moreover, the company has shown stellar earnings reports for the fourth quarter and fiscal year 2024.
NVIDIA’s earnings report showed, record quarterly sales of $22.1 billion, up 22% from Q3, and 265% from the previous year, with quarterly Data Center revenue of $18.4 billion, up 27% from Q3, and up 409% from a year ago. The company reported full-year revenue of $60.9 billion, up 126%.
Indian AI Stocks in Focus
In India, after the announcement of strong financial results by NVIDIA, Indian investors’ focus shifted towards AI stocks listed in India. However, this shift happened earlier, as Indian AI investments are riding on a strong wave of innovation and the digital economy. Given the fact that AI can power growth and disrupt innovation, the area has a high potential for expansion. Currently, among Indian AI companies, the listed companies on the stock market working in AI are quite sought after.
However, investing in top AI stocks in India may be a challenge, as AI technology is rapidly developing and swirling. Consequentially, one will have to undertake a thorough assessment of a few non-financial factors other than the performance of the company. The stock market investment decision is a factor that, as an investor, you will have to consider carefully before proceeding with investing. Making the right investment in the right listed company for the future is another thing.
Here is an analysis of the top AI stocks available in India for potential investors:
- Tata Consultancy Services (TCS): TCS is India’s biggest IT company and a prominent contributor to the economy of the nation. The company is a leader in IT services, consulting, and business solutions. TCS has been actively investing in AI and machine learning to enhance its service offerings.
CMP – ₹3,979.55 per share
Market Cap – ₹14,39,836.02 Crore
- Infosys: Infosys is a global leader in next-generation digital services and consulting, and its work in AI is extensive and multifaceted. Among various AI initiatives, generative AI Labs is one that Infosys has established. Generative AI empowers everyone within and beyond enterprises to lead the generative revolution and make change happen, as they imagine it. The company has collaborated with NVIDIA to help enterprises boost productivity with generative AI, enhancing their capabilities in AI-driven business processes.
CMP – ₹1,479.50 per share
Market Cap – ₹6,14,120.84 Crore
- Persistent Systems: Persistent Systems is a global company that specializes in digital engineering and enterprise modernization. In the field of AI, they offer a range of services and solutions designed to help businesses leverage AI technologies to drive growth and transformation. With significant investments in AI for various industry solutions, Persistent Systems is at the forefront of integrating AI into its services.
CMP – ₹ 3,996.95 per share
Market Cap – ₹61,573.01 Crore
- HCL Technologies: HCL Technologies, a prominent IT services company, has been focusing on AI through its products and services, aiming to provide innovative solutions to its customers. HCL Technologies has been actively working on AI through various initiatives and solutions. In addition, it has launched AI Force, a generative AI platform that enhances software development, productivity, and quality. The company offers comprehensive generative AI services across industries and business functions, focusing on innovation while adhering to a responsible and ethical AI framework.
CMP – ₹ 1,545.50 per share
Market Cap – ₹ 4,19,396.94 Crore
- Tech Mahindra: Tech Mahindra is one of the IT giants in India. Tech Mahindra is deeply engaged in the field of AI, offering a wide range of AI services and solutions to amplify business processes and democratize AI responsibly. The company provides a comprehensive suite of AI services that span the entire spectrum, from discovering AI opportunities within organizations to scaling and sustaining AI solutions. The company is using AI to offer next-gen solutions across various sectors.
CMP – ₹1,263.25 per share
Market Cap – ₹1,23,389.02 Crore
- Tata Elxsi: Tata Elxsi is the second Tata Group company on the list after TCS, which works in the AI sector. The company operates in the design and technology space, offering services and solutions that include AI. The company is deeply involved in the field of AI, offering a range of services and solutions that cater to various industries. The company provides AI solutions that are crucial for business transformation, focusing on customer expectations and the potential to disrupt established norms.
CMP – ₹ 8,047.40 per share
Market Cap – ₹50,116.34 Crore
*Note – CMP and Market Cap as on April 05, 2024.
Innovation and the Indian AI Sector
The stocks represent a cross-section of the Indian AI landscape, from established IT service giants to firms specialising in specific AI applications. Apart from listed entities, the Indian talent pool is making its way into the AI sector with innovation and energy. A few of them among various are Ola’s Krutrim, Perplexity, and BharatGPT. The Indian AI landscape is ripe with opportunities.
Investors have an opportunity to participate in India’s AI revolution due to the variety of AI applications across these stocks. Given AI’s continued role as a catalyst for technological advancement, these stocks have the potential to influence AI developments both domestically and internationally, in addition to reflecting present trends.
When considering an investment, investors should do a lot of research on these firms and weigh the dangers and long-term possibilities. Given due diligence, it may be possible to capitalize on India’s rapidly expanding AI business, which is expected to experience exponential growth in the upcoming years.
