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Top 10 Artificial Intelligence Stocks in India

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artificial intelligence stocks in india
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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.

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

Artificial Intelligence StocksMarket Capitalisation as on 8 Dec (Rs. Cr)
Tata Elxsi52,055.32
Persistent System49,210.85
Oracle Financial35,755.81
Cyient21,684.81
Affle India15,814.80
Happiest Minds13,272.27
Zensar  Tech.12,006.78
Rategain Travel Tech.7,725.05
Saksoft3,220.00
Kellton Tech855.62
Source: BSE

Top AI Stocks in India

1. Tata Elxsi:

As per market capitalization of artificial intelligence stocks in India, Tata Elxsi has topped the list with a market cap of Rs. 52. 05 Tcr. The AI offerings of Tata Elxsi include Video Analytics solutions, AIDMS, CMS services, Symantec, and more. During the quarter ending on 30 September 2023, this leading AI Company was chosen as the partner for strategic software development for Global Automotive OEM, a leading telecom company in Latin America, and other projects.

All these are multi-year projects, which may translate into significant revenue generation for the company in the upcoming years. On a YoY basis, the company’s revenue increased by 16.8% in Q2 FY24, while its profits increased by 14.8% during the same period. In the past five years, i.e., from 11 December 2018 to 7 December 2023, the Tata Elxsi share price has increased by 733.76%.

2. Persistent Systems Limited:

Very few stocks have returned more than a thousand percent between December 2018 and December 2023, one of which is Persistent Systems Limited. The stock price has increased by 932.57%  in the last five years, making investors more attracted to this artificial intelligence stock in India. Persistent Systems has all the services about AI that one can imagine.

It offers Generative AI solutions, software engineering products, Digital designs, CX strategies and transformation, Intelligent Automation, Cloud services, and cloud infrastructure. The industries that the company has already made ground into include BFSI, Healthcare, Consumer tech, Industrial, and others. The FY23 was great for the company, with a revenue increase of 35.3% YoY and a 33.4% increase in its PAT. In the previous quarter, Q2FY24, the company revenue increased by 14.1% on a YoY basis, while its TTM PAT increased by 21.3%.

3. Oracle Financial Services Software Limited

Oracle Financial Services Software Limited: Oracle has always been known for its software services to the financial sector, and now it is a predominant artificial intelligence stock in India. They offer multiple solutions with their AI products for different needs of financial services, such as AML solutions and anti-money laundering solutions. Then, they offer cloud infrastructure services, CX, and more.

This AI Company’s stock price has increased by 17.33% between 11 December 2018 and 7 December 2023. The revenues for the financial year 2023 went up by 9%, and the profits surged by a whopping 56%. The company has been consistent with its dividend payer. Oracle paid Rs. 225/share as interim dividend in May 2023.

4. Cyient

This is India’s fourth top artificial intelligence stock per market capitalization of Rs. 21.68 Tcr. The stock increased by 222.66% between 11 December 2018 and 7 December. This company offers digital, technology, and engineering solutions to industries ranging from Aerospace and Defense to oil & gas and mining.

In the previous financial year, FY23, the company’s revenue grew by 32.7% on a YoY basis, and PAT grew by 8.2% for the same period.

5. Affle India

This Company deals in a specific segment using its AI offerings. Affle India primarily works on customer experience solutions where it evaluates and analyzes potential users, acquires and re-engages them with its clients using AI solutions like AI-powered algorithms, which transform the ads the potential users see, and similar solutions.

This artificial intelligence stock in India has surged by 584.03% between December 2018 and December 2023, and its revenue has gone up by 32.6% in the previous FY23, while the PAT has increased by 33.8% during the same period.

6. Happiest Minds Technologies Limited

This is one of the new-age artificial intelligence stocks in India, which offers Artificial intelligence and analytics services for business transformation, easy access to business insights, modernization, and more.

The company’s total income for the financial year 2023 went up by 28.27%, while the PAT increased for the same period by 27.48%. Revenue rose 14.4% during the previous quarter, and PAT decreased 1.6%.

7. Zensar Technologies Limited

Zensar, one of the artificial intelligence stocks in India, has been redefining AI with its products and services like AI Engineering Buddy, which enhances software development and offers better solutions to customers. Then, there is a range of services related to AI and automation and machine learning for data engineering and analytics.

Coming to the financial performance of this artificial intelligence company, in the previous quarter of Q2FY24, the company’s revenue went up by 0.5% on a YoY basis. However, its PAT went up by 206.3% for the same period. The annual revenue for FY23 went up by 14.2%; however, the profits tanked by 21.3% during the financial year. The share price of this artificial intelligence stock went up by 121.37% between 11 December 2018 and 7 December 2023.

8. RateGain Travel Technologies Limited

This AI company offers its AI and other technology services and solutions only for the travel industry. Its clientele includes airlines, car rentals, hotels, cruise and ferries, travel management companies and others.

In the previous quarter, its revenue increased by a whopping 81.4% on a YoY basis, and the PAT increased even more than 131.7% on a YoY basis. In FY23, its revenue went up by 54.2% on a YoY basis. This artificial intelligence stock’s share price increased by 95.81% between December 2021 and 2023.

9. Saksoft Limited

This Artificial Intelligence Stock in India has surged by 1080.19% between 11 December 2018 and 7 December 2023, similar to Persistent Systems. The company may be in the second-last position per market capitalization in the AI space, but it is quite visible across industries for its AI solutions and technology services.

The industries from which the company generates most of its revenue are the Utilities and Telecommunication industry, Fintech, Transportation, and others. The revenue increased by 16.2% on a YoY basis in the previous quarter, while the PAT increased by 31.1% during the same period.

10. Kellton Tech Solutions Limited

The tenth artificial intelligence stock in India by market cap is Kellton Tech, which has returned 172.82% to investors between 11 December 2018 and 7 December 2023. Kellton Tech’s AI solutions include utilitarian AI, generative AI, and predictive analytics. The revenue for FY23 was up by 8.96%, but the PAT tanked drastically by around 280%.

Read More: Grey Market Premium | Top 10 Artificial Intelligence | Top 6 Solar Energy Stocks In India

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.

Frequently Asked Questions on Artificial Intelligence Stocks

  1. What is the best AI stock in India?

    Identifying the best AI stocks in India requires a meticulous analysis, given the dynamic nature of the market. When selecting artificial intelligence stocks, it's essential to consider factors like financial stability, growth potential, leadership, and overall market trends. Diversifying investments is prudent, and seeking insights from financial experts can enhance decision-making. A careful and informed approach is key for investors investing in India's best AI and artificial intelligence stocks.

  2. What are the top 10 AI stocks?

    The top 10 AI stocks encompass a diverse range of companies, each contributing to the dynamic landscape of artificial intelligence. These include:
    Tata Elxsi
    Persistent System
    Oracle Financial
    Cyient
    Affle India
    Happiest Minds
    Zensar Tech.
    Rategain Travel Tech.
    Saksoft
    Kellton Tech

  3. Can AI predict the stock market?

    AI is equipped with advanced algorithms and machine learning capabilities that enable it to analyze vast amounts of historical data, identify patterns, and make predictions based on that analysis. However, it's essential to note that while AI can enhance market analysis and decision-making, predicting stock markets with absolute certainty is inherently challenging.
    The stock market is influenced by numerous unpredictable factors, including economic conditions, geopolitical events, and unforeseen circumstances. AI systems may provide insights and assist in making more informed investment decisions, but they cannot guarantee accurate predictions due to the financial markets' inherent complexity and volatility.

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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.

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