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When investing in the stock market Investors should always consider putting their hard earned money into futuristic stocks with solid market share and potential for long term gains. What could be better than investing in companies which is heavily involved in futuristic technologies like best artificial intelligence stocks or Internet of Things?
Imagine a company specializing in futuristic technologies as smart assistants, driverless cars, automated recommendations, voice recognition systems and other innovative applications. If you have the opportunity to invest in these companies through their stocks would you see it as a promising investment opportunity or a considerable risk? AI is revolutionizing industries, offering transformative potential for businesses and boosting efficiency. Best artificial intelligence stocks are rapidly expanding, fueled by widespread adoption of AI technologies, advancements in infrastructure and algorithms and increased investment in research and development.
As AI continues to evolve it is expected to play a larger role in corporate operations and consumer applications. Both established companies and startups in India are embracing AI to drive business transformation and improve efficiency. The growing demands of AI are positively influencing the stock market offering benefits for traders in India. In this blog, we’ll cover the benefits, risks, and top 10 AI stocks for investing in India.
What are AI Stocks?
Before discussing which AI companies to invest in, let’s understand artificial intelligence. AI refers to replicating human intelligence in machines particularly computers. It includes applications like expert systems, natural language processing, speech recognition, and machine vision, demonstrating AI’s diverse capabilities and robots performing tasks like humans, often in an automated manner. It’s a modern technology capable of faster and more accurate task completion.
AI is applied across various sectors, from self driving cars and digital assistants to manufacturing, healthcare, and automated financial investing.
Companies that utilize AI technologies are known as “AI Stocks.”
Overview of the AI Industry
According to reports India’s AI market is currently valued at less than $1 billion and is projected to grow at a CAGR of 25-35% to $4 billion by 2029. Indian companies have the potential to tap into the global market, where AI is set to contribute up to $15.7 trillion to global economic growth by 2030, surpassing the combined GDP of India and China.
A 2023 PwC survey found that around 54% of companies have implemented AI for business, with increased momentum post COVID as companies adopted AI tools to streamline workflows. India produces 16% of the world’s AI talent pool, and its AI market is expected to grow by 20% over the next five years, according to a joint study of Microsoft & Internet and Mobile Association of India.
Many Indian companies, already technology leaders are now leveraging AI for innovative solutions. While some are pure play AI companies, most collaborate with others or establish their own AI based solution verticals.
Precedence Research predicts an increase in the AI industry over time. The table below shows this growth and explains why investing in AI stocks is a good idea.
Market Size in US $ billion
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Top 10 AI Shares to Invest in India For 2024
Here is a list of the top 10 Artificial Intelligence shares in India for 2024
Note: As of 9 March 2024
Overview of Best Artificial Intelligence Stocks to Invest in India 2024
- Tata Elxsi
Tata Elxsi, a technology firm within the Tata group is a leader in India’s AI landscape. They offer various AI based solutions such as video analytics, customer experience management and conversational AI like SymanTEx and TESA.
As part of the Tata group, Tata Elxsi isn’t just another IT services company it specializes in providing design, connectivity and integration services to sectors like Automotive, Communication, Media and Healthcare. Leveraging AI, they implement advanced services in areas like autonomous cars and wearables.
- Kellton Tech Solutions
Kellton Tech Solutions headquartered in Hyderabad specializes in IT services offering digital transformation and consulting across various sectors. The company is focused on emerging technologies like AI, machine learning and IoT. Their AI solutions range from chatbots to predictive analytics and intelligent automation. The company has built an AI-driven healthcare platform using machine learning to personalize patient care.
Kellton recently opened the Kverse Customer Experience Center and Innovation Lab at their Gurgaon office in India. This facility highlights Kellton’s expertise in digital transformation, Cloud, IoT, Analytics and AI. It also showcases emerging technologies like Web3 and the Metaverse.
- Saksoft
Saksoft, a company shifting its focus to AI offers comprehensive AI services including consulting, data mining, ML development, computer vision and NL -based sentiment analysis. It provides technology services to industries like Fintech, Utilities, Healthcare, Transport and Logistics, primarily serving small and medium enterprises
- Happiest Mind
The company offers solutions that use advanced technology like augmented intelligence, natural language processing, image and video analysis, and emerging tech such as AR and VR. Happiest Minds also offers data analytics, cloud computing, networking, engineering, digital solutions, infrastructure and other support services to clients globally.
- Bosch
Bosch a multinational company based in German, is among the AI stocks in India. They specialize in producing technology and services for various sectors including mobility, industrial technology, consumer goods, energy and building technology. Recently, they revealed plans to use AI in manufacturing processes to enhance efficiency.
- Persistent Systems
An Indian IT services company, Persistent Systems offers AI based solutions to clients across various industries. It has invested in AI research and development, resulting in several AI based solutions for its clients. Its offerings include Generative AI solutions, software engineering products, Digital designs, CX strategies, Intelligent Automation, Cloud services and cloud infrastructure.
- Zensar Technologies
Established on 26 March 1963, Zensar Technologies Ltd. is a key player in digital solutions and technology services. It supports global organizations across sectors in their Digital Transformation efforts. Initially, it partnered with international firms like ICL UK, Fujitsu Japan, and Northern Telecom Canada. Zensar offers innovative IT services, including AI powered data analytics, cloud transformation, automation and digital workspace solutions.
- KPIT Technologies
KPIT Technologies, a prominent Indian multinational company, specializes in providing software, AI, and digital solutions to the automobile and mobility sector. They operate extensively in the U.S., UK, and Europe. Their offerings include solutions for automated driving, advanced driving assistance, battery management systems, high-powered inverters, advanced charging equipment, and more.
- Cyient
Cyient is an Indian engineering services company offering AI-based solutions to clients across various industries. Established in 1991 as Infotech Enterprises Ltd, it focuses on global technology services like geospatial engineering, IT solutions, and data analytics. Headquartered in India, Cyient operates development facilities in the country and serves an international clientele through subsidiaries in the U.S., U.K., Germany, Japan, Australia, Singapore, and India. They specialize in digitizing drawings and maps, remote sensing, computer design and modeling, and repair development engineering, aiding industries in leveraging location in the digital age.
- Oracle Financial Services Software
Oracle Financial Services Software Limited, an Indian subsidiary of Oracle Corporation, develops software for banks and insurance sectors. They’ve integrated AI into their products, allowing customers to access AI capabilities within the product interface. Oracle’s AI is utilized for data processing, analytics, document processing (KYC), and customer onboarding. It is recognized as a top AI stock company because of its wide ranging use of Artificial Intelligence in the finance industry.
Investing in Best Artificial Intelligence Stocks offers several advantages:
- Growth Potential: As AI technology matures and integrates into daily life, investors may benefit from holding AI stocks for long term growth.
- Innovation: AI companies are leading the way in creating revolutionary technologies, offering opportunities for breakthroughs and promising opportunities for investors.
- Diversification: Including AI stocks in your portfolio spreads risk across different asset classes, potentially boosting overall returns.
- Future proofing: Investing in AI stocks now can safeguard your portfolio against future shifts as AI becomes increasingly vital across various industries.
- Advanced Solutions: AI companies are delivering advanced solutions globally, benefiting industries and governments worldwide.
- Increased Efficiency: Businesses adopting AI technologies improve efficiency and productivity, potentially driving higher revenue and profitability.
Key Factors to Consider Before Investing in Best AI Shares in India 2024
Investing in AI stocks shows great potential for future market growth. But, as with any investment, it’s important to consider certain factors before diving in. AI is seen as the next big thing in investment management, offering accuracy and efficiency at a reasonable cost. Before investing in AI solutions, it’s essential to evaluate factors like market potential, technological advancements, and cost-effectiveness.
- Financials: Before investing in an AI company, carefully examine its financial fundamentals. Analyze the balance sheet and cash flow statement of the company. Pay close attention to the company’s debt, profitability, cash flow, and earnings per share. These key financial metrics provide insight into the company’s financial health and long-term growth potential.
- Technical: Before investing in AI stocks, consider the company’s high valuation and technical indicators like moving averages, support and resistance.
- Regulations: Before investing in AI stocks, you should be aware of the evolving regulations in India’s AI sector.
- Client Base: Look for companies with diverse clients willing to invest in AI solutions, enabling them to develop their AI capabilities.
- Management: When investing in AI companies, examine the management team’s track record and expertise. Skilled leaders with industry knowledge and a clear growth vision reassure investors about the company’s future success.
Final Words
When considering best artificial intelligence stocks, investors should carefully consider the risks and opportunities. They should evaluate factors like company revenue, market share, profitability, and growth potential. Companies showing strong growth are likely to offer better returns. It’s wise to carefully assess all aspects before adding AI stocks to your investment portfolio, with a cautious approach and limited exposure.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
