Top AI Stocks in India 2024: List of Best Artificial Intelligence Companies

The rise of artificial intelligence is reminiscent of how the internet revolutionised the world in the late 1990s and early 2000s. Back then, companies at the forefront of internet technology, like Amazon and Google, started as niche players but rapidly grew into industry giants as the world adopted the internet for everyday use. AI is following a similar trajectory—what started as research projects in labs has now become a transformative force across industries like healthcare, finance, retail, and more. AI’s integration into everything from consumer tech to industrial operations is accelerating, and this presents a unique opportunity for investors. This blog will explore the top artificial intelligence stocks in India and provide an overview of artificial intelligence listed companies in India.

Top Artificial Intelligence Stocks in India Based on Dividend Yield

Here is a list of top AI stocks in India sorted according to their respective dividend yield percentages. This list includes the top AI based companies in India & their market capitalisation, artificial intelligence share price in India and ROE.

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in this AI share list is subject to real-time updates.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

High-volatility stock portfolios for investors with a high risk appetite

Try smallcase

DISCOVER

High-volatility stock portfolios for investors with a high risk appetite

Try smallcase

Best AI Shares in India 2024 – An Overview

Here is a brief overview of the listed artificial intelligence companies in India based on their dividend yield:

HCL Technologies Ltd

Founded in 1976 by Shiv Nadar, HCL Technologies Ltd is one of India’s leading global IT services companies, specialising in IT consulting, software development, and business process outsourcing. As of 2nd September 2024, HCL Technologies has a market capitalisation of Rs. 4,74,073.95 cr., and a closing price of Rs. 1,753.25. The company has a PE ratio of 30.19 and offers a dividend yield of 2.98%. The return on equity stands at 23.49%.

Infosys Ltd

Founded in 1981 by Narayana Murthy, Infosys Ltd is a global leader in IT services and consulting, providing services such as software development and maintenance. Infosys is known for its focus on innovation, digital transformation, and artificial intelligence. The company has a market capitalisation of Rs. 8,00,768.13 cr., and a closing price of Rs. 1,943.70. The company’s PE ratio is 30.53, with a dividend yield of 2.38% and a return on equity of 31.94%.

Oracle Financial Services Software Ltd

Oracle Financial Services Software Ltd, established in 1990, is a subsidiary of Oracle Corporation. It provides specialised software solutions for the banking and financial services sector, including banking software, analytics, and risk and compliance management tools. The company has a market capitalisation of Rs. 93,738.30 cr., and a closing price of Rs. 10,988.70. Its PE ratio is 42.24, with a dividend yield of 2.22% and a return on equity of 28.98%.

Tech Mahindra Ltd

Tech Mahindra Ltd is an artificial intelligence company in India that was established in 1986. They are part of the Mahindra Group. The company focuses on digital transformation, data analytics, and cloud services. Tech Mahindra has a market capitalisation of Rs. 1,61,145.81 cr., and a closing price of Rs. 1,636.50. The PE ratio is 68.35, with a dividend yield of 2.19% and a return on equity of 8.49%.

Tata Consultancy Services Ltd

Founded in 1968, Tata Consultancy Services Ltd (TCS) is a global leader in IT services, consulting, and business solutions. TCS offers services that include software development, systems integration, and consulting. It is a part of the Tata Group and is known for innovations in digital, cloud, and AI. TCS has a market capitalisation of Rs. 16,32,408.73 cr., and a closing price of Rs. 4,553.75. The PE ratio is 35.56, with a dividend yield of 1.62% and a return on equity of 50.30%.

Get 500+ Readymade Stock Baskets

Created & managed by SEBI-registered experts

Try smallcase

Get 500+ Readymade Stock Baskets

Created and managed by SEBI-registered experts

Try smallcase

How to Invest in Artificial Intelligence (AI) Stocks in India?

Here is how one can invest in AI stocks in NSE in India:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!

2. Conduct thorough research into the Indian artificial intelligence stocks that are of interest to you. Investors can use tools like the Tickertape Stocks Screener to do this. The screener offers 200+ built-in filters to choose from, and investors can choose the parameters to research. 

3. Place a ‘Buy’ Order on the AI Stocks of your choosing. 

Note: Investors should conduct thorough research and consult a financial advisor before investing in shares of top AI companies in India.

Investing in AI Stocks in India via smallcase

You can also invest in a basket of Artificial Intelligence stocks in NSE via smallcase. Simply go to smallcase.com or the smallcase app, and login via your phone number. Then, go to ‘Discover’ and enter ‘artificial intelligence’ in the search bar and hit enter. You’ll find an array of stock portfolios that have artificial intelligence companies in India. Just pick the one that fits your investment criterion.

Make sure that you do your diligent research before picking the right AI-related stocks in India with price, considering your long-term investment goals and risk appetite.

1 Crore+ people use smallcase for their investments

Download App

1 Crore+ people use smallcase for their investments

Download App

What are AI Stocks in India?

Before understanding which artificial intelligence share in India to invest in, let’s first understand artificial intelligence in India. Artificial Intelligence refers to emulating human intelligence in machines, especially computers. It encompasses applications like expert systems, natural language processing, speech recognition, and machine vision, showcasing the diverse capabilities of AI. Therefore, AI-related stocks in India refer to the top AI companies listed in NSE that are heavily involved in developing, applying, and advancing artificial intelligence (AI) technologies.

The Indian AI Sector: An Overview

Artificial Intelligence (AI) is set to play a pivotal role in global economic growth, with a projected contribution of up to $15.7 trillion by 2030, surpassing the combined GDP of India and China. India, as the third-largest global talent pool for AI, is positioned for a significant AI revolution. Investments in India’s AI capabilities are growing at a remarkable 30.8% CAGR, expected to reach $881 million in 2023. The burgeoning semiconductor industry is poised to be the foundation of India’s AI market, projected to be valued at $7.8 billion by 2025. 

Anticipated to drive 60% of AI’s Gross Value Added (GVA) in India’s GDP by 2025, key sectors include Industrials & Automotive, Healthcare, Retail, and CPG. Additionally, BFSI and Agri-tech are emerging as crucial application areas for the artificial intelligence industry in India. For investors seeking opportunities in this transformative landscape, the top artificial intelligence stocks in India offer substantial growth potential.

Why Invest in the AI Stock Industry in India?

From cars that drive themselves to robots performing surgeries, artificial intelligence (AI) is helping us transform for a better future. 

• The AI industry in India is growing rapidly, with a market size of $119.78 billion in 2022 and an estimated value of $1,597.1 billion by 2030.

• Businesses in healthcare, manufacturing, finance, and retail are increasingly adopting AI technology.

• Experts from IMRAC group suggest that investing in top AI companies in India presents an exciting opportunity for growth.

• The AI share price in India has become a key indicator of market confidence, reflecting the rapid advancements in the sector.

• Groundbreaking advancements in AI, such as ChatGPT by OpenAI, reached 100 million users within two months of its launch, highlighting the future of artificial intelligence in India.

• Platforms like Jampp, a programmatic advertising tool for mobile businesses, are also rising in use, further boosting AI adoption.

As AI-related stocks in India continue to rise, AI’s impact on the landscape will deepen, offering significant potential for investors to benefit from this rapidly evolving market.

Features of Artificial Intelligence Stocks in India 

The top artificial intelligence stocks in India exhibit distinct characteristics that define their role in the financial landscape.

• Algorithmic Trading Precision: Artificial intelligence shares in India leverage sophisticated algorithms for trading, allowing for precise execution and rapid decision-making based on real-time market data.
• Predictive Analytics: These artificial intelligence company stocks in India often incorporate advanced predictive analytics models, enabling a data-driven approach to anticipate market trends and fluctuations, contributing to informed investment decisions.
• Risk Management Strategies: Artificial Intelligence shares in India, including the best AI penny stocks in India, are equipped with robust risk management mechanisms, which dynamically adjust to mitigate potential losses and optimise returns.
• Adaptability to Market Dynamics: Artificial intelligence related stocks in India showcase adaptability to evolving market conditions. Machine learning algorithms continuously learn from market behaviour, refining strategies to stay relevant in fluctuating environments.
• Automated Portfolio Management: AI based stocks in India often come with automated portfolio management features, streamlining the process of balancing and diversifying investments based on predefined parameters.

Advantages of Investing in Artificial Intelligence (AI) Stocks in India

Let’s have a look at some of the advantages of investing in artificial intelligence stocks in India.

• Growth Prospect: AI is a rapidly growing industry, with a market size projected to reach USD 267 billion by 2027. As AI continues to transform industries such as healthcare, finance, and retail, companies. Essentially, leaders in AI technology can experience significant growth.
• Potential Higher Returns: Investing in artificial intelligence shares in India can provide many benefits, including the potential for high growth. Although the AI industry is still in its early stages, its products and services continue to rise and can lead to an increase in stock prices.
• Diversification: Another advantage of investing in artificial intelligence stocks in India is the potential for diversification. AI technology is used in various industries, which means investing in Indian AI stocks can provide exposure to multiple sectors. This diversification can help reduce risk and provide stability to your investment portfolio.

How to Select the Best Artificial Intelligence Stocks for Investing?

When deciding on AI stocks to buy in India, it’s essential to consider factors like the company’s focus on AI innovation, market positioning, and long-term growth prospects. Here are a few ways you may ascertain a safe investment experience while considering top AI stocks in India, including AI startups in India:

• Assess AI Integration Commitment: Companies actively involved in AI research, development, and application are likelier to have a solid foundation in the dynamic tech landscape, making them promising candidates for investment.
• Evaluate Financial Health: Delve into the financial health of top artificial intelligence stocks in India. A company with a strong balance sheet and a history of sound financial management is better positioned for long-term success. The AI company share price is also a key indicator of the growing importance of artificial intelligence in India’s tech landscape. 
• Scalability and Adaptability: A versatile approach that addresses diverse market needs and the ability to scale innovations for broader applications contribute significantly to sustained growth and relevance in the competitive AI sector.
• Partnerships and Collaborations: Those engaged in strategic alliances with other industry leaders may have a competitive edge. Collaborations signify a commitment to innovation and often enhance a company’s market position, making them noteworthy considerations for investment.
• Regulatory Awareness: Given the evolving nature of AI technology, a company’s ability to navigate and comply with regulations is crucial. Companies that demonstrate a proactive approach to regulatory compliance inspire investor confidence.

Risks of Investing in AI Stocks

Let’s have a look at the challenges that one should consider while investing in the top AI stocks in India:

• Volatility: As with any investment, there are risks involved in investing in even the best AI stocks in India for long term. One of the main risks is the volatility of the stock market. AI-based stocks in India can be affected by market fluctuations, and their prices can fluctuate rapidly.
• Technological Advancements: Other risks include regulatory changes, competition, and technology limitations. Regulatory changes could impact the AI industry, and competition could reduce the profits of AI company’s stock. Technology limitations could also affect the growth of the AI industry.
• High Competition: The AI industry is highly competitive. Established companies with significant resources can quickly enter the market and disrupt existing players, causing significant losses for investors. Therefore, investors should conduct thorough research before investing in the top artificial intelligence stocks in India.

Tips for Investing in AI Stocks

For investors seeking high-growth opportunities, identifying the right artificial intelligence company in India is key. Here, we have listed some of the best tips and strategies to consider when identifying AI stocks to buy in India.

• Portfolio Diversification: To invest in AI companies in India, investors should diversify their portfolios. Conduct thorough research on companies and their artificial intelligence stocks in India before investing.
• Long-Term Investment: It is also essential to have a long-term investment perspective, as AI-related stocks in India can be potentially volatile in the short term. 
• Stay Updated: Investors should stay up-to-date with industry news and avoid common pitfalls, such as investing based on emotions and not having a well-defined investment strategy. Investors should also consider the AI share price in relation to the company’s valuation metrics.

Factors to Consider Before Investing in AI Stocks in India

Investing in AI stocks in India holds the potential for substantial returns, but prudence dictates a thoughtful approach. Here are five critical considerations while analysing the  top artificial intelligence stocks in India:

• Financial Strength: Examine the financial health of potential AI stocks in India investments. Analyse balance sheets, cash flow, and profitability records. Favour artificial intelligence companies in India are listed on the NSE with a robust financial position, as this indicates a foundation for sustained growth.
• Competitive Positioning: Given the intense competition in India’s AI industry, scrutinise a company’s competitive standing. Evaluate factors like technology, AI market size, intellectual property, market share and customer base. A strong competitive advantage enhances a company’s growth and longevity prospects.
• Management Prowess: Assess the management team’s experience and understanding of the industry. Strategic and knowledgeable leadership is instrumental in determining the best AI stocks in India for long-term investments.
• Regulatory Awareness: Given the evolving regulatory landscape for AI technologies, stay informed about the regulatory environment in India. Look for the top artificial intelligence companies in India listed on NSE that comply with regulations. Understand potential impacts on their operations due to regulatory changes.
• Market Dynamics: Evaluate the market potential of the artificial intelligence companies’ stock in India. When analysing the AI share price of leading companies, it’s crucial to consider both historical trends and future growth potential. Companies well-positioned to meet the increasing demand for AI technologies in India and globally are likely to offer superior returns.

As always, investors must conduct their own research and/or consult their financial advisor before investing in artificial intelligence related stocks in India.

To Wrap It Up…

As the AI landscape evolves, each artificial intelligence company in India is playing a pivotal role in shaping the future of technology. If you’re searching for AI stocks to buy in India, conducting thorough research and staying up-to-date with industry news can help you make informed decisions when investing in AI stocks in India. Considering the increasing significance of AI across various industries, you can potentially find a promising future for AI companies listed on the NSE in India. As always, please do your own research and/or consult a financial advisor before investing.

Frequently Asked Questions on Artificial Intelligence Stocks