Home Collections Top Artificial Intelligence (AI) Stocks in India: Stock Overviews, Features & Tips for Investing in AI Shares

Top Artificial Intelligence (AI) Stocks in India: Stock Overviews, Features & Tips for Investing in AI Shares

Top Artificial Intelligence (AI) Stocks in India: Stock Overviews, Features & Tips for Investing in AI Shares
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Artificial intelligence (AI) is an innovative technology that has become increasingly important in various industries. AI has the potential to transform businesses and improve efficiency, leading to significant growth opportunities for AI company stocks in India. The growing importance of AI stocks in India has also been reflected in the stock market, with AI stocks in India attracting investors’ attention. This blog will explore the benefits, risks, and the top 10 artificial intelligence stocks to invest in India.

Best Artificial Intelligence Stocks in India Based on Dividend Yield 

Here is an AI stocks list of top artificial intelligence stocks sorted according to their respective Dividend Yield percentages. This list includes the top AI based companies in India & their market capitalisation, share prices and ROE, which might be of interest to concerned investors:

Company Name Sub-SectorDividend Yield (%)ROE (%)Market Cap (in Cr)Share Price
HCL Technologies LtdIT Services & Consulting3.27%23.31%₹4,31,506₹1,582.40
Infosys LtdIT Services & Consulting2.56%31.94%₹7,42,600₹1,818.50
Tech Mahindra LtdIT Services & Consulting2.42%8.49%₹1,45,881₹1,503.05
Oracle Financial Services Software LtdSoftware Services2.22%28.98%₹93,844₹10,883.25
Tata Consultancy Services LtdIT Services & Consulting1.70%50.30%₹15,56,645₹4,294.70
Cyient LtdSoftware Services1.65%17.03%₹20,134₹1,872.70
Zensar Technologies LtdIT Services & Consulting1.20%20.34%₹16,944₹750.50
Bosch LtdAuto Parts1.10%21.61%₹1,00,494₹34,556.90
L&T Technology Services LtdSoftware Services1.02%26.60%₹51,645₹5,002.00
Tata Elxsi LtdSoftware Services1.00%34.51%₹43,472₹6,926.05
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 on this AI shares list is from 22nd May 2024. This data is derived from Tickertape Stock Screener.

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

Best AI Shares in India 2024 – An Overview

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

HCL Technologies Ltd

HCL Technologies Limited provides a range of software development services, business process outsourcing services and information technology infrastructure services. HCL Technologies (HCLTech) has unveiled AI Force, a generative AI platform designed to enhance software development, productivity, and quality. Built on Azure OpenAI, this patented platform integrates seamlessly with Microsoft GitHub Copilot. Vijay Guntur, President of Engineering and R&D Services at HCLTech, highlighted the platform’s transformative potential. He noted that pilot projects with clients in the technology and financial sectors have yielded highly promising results.

Infosys Ltd

Infosys has joined the AI Safety Institute Consortium, established by the National Institute of Standards and Technology (NIST), part of the U.S. Department of Commerce. This consortium aims to develop guidelines and standards for AI security and responsible AI adoption. In an exclusive CNCB-TV18 interview, Infosys CEO Salil Parekh revealed that the AI company in India is engaged in 200 AI-related projects as part of its GenAI strategy. He assured that AI implementation would not lead to job cuts and emphasised that various technologies would coexist in large organisations. Parekh also mentioned that Infosys is training 75% of its workforce in AI and Generative AI to seize emerging tech opportunities. 

Oracle Financial Services Software Ltd

Oracle Financial Services Software Limited is a provider of IT solutions to the financial services industry. The Company offers a suite of banking products catering to the needs of corporate, retail, investment banking and treasury operations. Oracle has introduced two AI-powered features in its Oracle Financials Cloud to enhance efficiency and accuracy in finance processes. The Intelligent Account Combination Defaulting for Invoices and Dynamic Discounting features offer significant advantages. However, it’s essential to consider whether these tools meet your organization’s specific needs and integrate seamlessly with your existing system

Tech Mahindra Ltd

Tech Mahindra Limited is engaged in the business of computer programming, consultancy and related services. It’s segments include Information Technology (IT) Services and Business Processing Outsourcing (BPO). Tech Mahindra is experiencing a revolutionary change in enterprise technology. As India’s tech industry is thriving, Tech Mahindra is seizing this moment by leveraging emerging technologies like generative AI, quantum computing, and the metaverse. The company recognises that as these technologies advance, AI’s impact on the global business landscape will be transformative.

Tata Consultancy Services Ltd

Tata Consultancy Services Limited (TCS) is engaged in providing information technology (IT) services, digital and business solutions. Tata Consultancy Services (TCS) has developed one of the world’s largest and most AI-ready workforces, according to CEO K Krithivasan. In an email to employees marking the start of the new fiscal year (FY2024-25), Krithivasan highlighted that TCS is involved in over 200 GenAI projects with clients and expects a robust pipeline of future work across various industries.

Cyient Ltd

Cyient Limited is engaged in providing software-enabled engineering and geographic information system (GIS) services. The Company’s segments include Data & Network Operations , Engineering, Manufacturing, Industrial Products and Product Realisation. Cyient has partnered with Microsoft to establish a Centre of Excellence (CoE) called EnGeneer, focused on advancing engineering innovation with Generative AI technologies. EnGeneer leverages the Azure OpenAI service to create platforms and tools that enhance the engineering lifecycle. By incorporating automation and assistance, these tools aim to increase productivity and quality. Rajaneesh Kini, Cyient’s CTO, highlighted that EnGeneer will significantly improve engineering agility and efficiency through the use of Generative AI.

Bosch Ltd

Bosch Limited operates in the manufacturing and trading of automotive products. Bosch employs around 421,000 people globally and actively engages in research, particularly in AI-enabled products and services. Since 2018, the company has filed over 1,000 patents, showcasing its innovation. The Bosch Center for Artificial Intelligence drives the development and implementation of advanced AI technologies across various business sectors. Bosch’s research focuses on deep learning, natural language processing, probabilistic modeling, and reinforcement learning, ensuring the company remains at the forefront of technological advancement.

Zensar Technologies Ltd

Zensar Technologies Limited is a software and infrastructure services company, which provides a range of information technology services and solutions. Zensar Technologies Ltd is actively engaged in nearly 100 proof-of-concept (PoC) projects revolving around generative artificial intelligence (AI). CEO Manish Tandon stresses the importance of moving beyond mere demonstrations and prototypes in the AI realm. He highlights the need to confront practical challenges and limitations head-on.

L&T Technology Services Ltd

L&T Technology Services Ltd offers design, analysis, prototyping & testing, embedded system design, manufacturing engineering and engineering process support using cutting-edge CAD / CAM / CAE technology in various domains. L&T Technology Services Limited (LTTS), a leading provider of digital engineering and R&D services, is strategically accelerating global AI adoption. They’re actively participating in the NVIDIA GTC global AI conference from March 18-21, engaging with customers and demonstrating their dedication to advancing AI technology. Through scalable AI solutions, LTTS aims to empower enterprises worldwide.

Tata Elxsi Ltd

Tata Elxsi Limited is engaged in the design and development of computer hardware and software. The Company operates in two segments: System integration & support and Software Development & Services. Tata Elxsi is reshaping product design with innovative integration of Gen AI, marking a shift towards enhanced efficiency and creativity. Shyam Sunder B K, the company’s Chief Designer, emphasises the transformative impact of artificial intelligence sectors on product design workflows, from conceptualisation to realisation. With the strategic integration of Generative AI, the entire design process undergoes a paradigm shift, enabling notable enhancements in concept generation, refinement, and visualisation.

Investing in AI Stocks 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 stocks in India with price, considering your long-term investment goals and risk appetite.

However, if you’re confused about which stocks to pick, you can explore smallcases:

  1. smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
  2. They’re created and managed by SEBI-registered experts
  3. smallcase.com offers over 200+ stock portfolios, created by 180+ managers
  4. Some of the popular smallcases among new investors are as follows:

Equity & Gold smallcase by Windmill Capital

Top 100 Stocks smallcase by Windmill Capital

All Weather Investing smallcase by Windmill Capital

Disclosures for aforementioned smallcases

What are AI Stocks in India?

Before understanding which AI listed companies 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 based stocks in India refer to the top AI companies in India 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 AI.

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 experiencing growth with a market size reaching $119.78 billion in 2022 and an estimated value of $1,597.1 billion by 2030. Businesses across sectors, including healthcare, manufacturing, finance and retail are increasingly embracing AI technology. 

IMRAC group experts suggest that investing in top AI companies in India potentially presents an exciting opportunity.

With their groundbreaking advancements in AI such as ChatGPT, the artificial intelligence chatbot developed by OpenAI, recorded 100 million users only two months after its launch. This rate suggests that the future of artificial intelligence in India potentially looks promising. Additionally, the use of Jampp, a programmatic advertising platform to accelerate mobile businesses is on the rise as well. 

As AI stocks India adoption continues to surge OpenAIs, its pro contributions can significantly impact India’s landscape. By investing in the artificial intelligence market, you can reap the benefits of the company’s growth as it continues to shape the future of AI-based solutions and applications.

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

One way to invest in the best AI shares in India is through traditional stock market investing. This involves investing in the listed artificial intelligence companies in India and buying the best AI shares in India directly. 

Another way to invest in AI stock in India is through exchange-traded funds (ETFs). Investors can choose from various value-oriented ETFs, which may provide exposure to a diversified portfolio of top AI companies in India.

Mutual funds are another option for investing the best in AI shares in India. These are professionally managed investment portfolios that pool money from multiple investors to buy a diversified portfolio of AI stocks India. Like ETFs, there are a variety of mutual funds that focus on AI investing.

Factors to Consider Before Investing in AI Stocks in India

Investing in AI stocks in India with price holds the potential for substantial returns, but prudence dictates a thoughtful approach. Here are five critical considerations for investing in AI stocks in 2024:

  • Financial Strength: Examine the financial health of potential AI stocks India investments. Analyse balance sheets, cash flow, and profitability records. Favor artificial intelligence companies in India listed on 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, scrutinize a company’s competitive standing. Evaluate factors like technology, market share, intellectual property, and customer base. A strong competitive advantage enhances a company’s growth and longevity prospects.
  • Management Prowess: The leadership team’s track record is paramount. Assess the management team’s experience and understanding of the industry. A strategic and knowledgeable leadership is instrumental in ensuring the company’s and thereafter the AI stocks in India’s long-term success.
  • 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 and understand potential impacts on their operations due to regulatory changes.
  • Market Dynamics: Evaluate the market potential of the artificial intelligence companies stock in India. Thereafter, revenue, market share, and profitability growth potential should be analysed. Companies well-positioned to meet the increasing demand for AI technologies in India and globally are likely to offer superior returns.

Features of Artificial Stocks in India 

Artificial Intelligence (AI) stocks in India exhibit distinct characteristics that define their role in the financial landscape.

  • Algorithmic Trading Precision: AI related stocks in India leverage sophisticated algorithms for trading, allowing for precise execution and rapid decision-making based on real-time market data.
  • Predictive Analytics: These top AI shares 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: AI-driven stocks are equipped with robust risk management mechanisms, which dynamically adjust to mitigate potential losses and optimize returns.
  • Adaptability to Market Dynamics: Artificial stocks 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: Artificial intelligence stock 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, that are leaders in AI technology can experience significant growth.
  • Higher Returns: Investing in artificial intelligence stocks 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 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?

Here are a few ways you may ascertain a safe investment experience while considering AI stocks:

  • Assess AI Integration Commitment: Examine a company’s dedication to artificial intelligence (AI) integration. 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 potential AI investments. A company with a strong balance sheet and a history of sound financial management is better positioned for long-term success. Analyse earnings reports and assess revenue growth to gain insights into financial stability.
  • Scalability and Adaptability: Consider the scalability and adaptability of a company’s AI solutions. 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: Examine a company’s 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: Stay informed about the regulatory landscape surrounding AI. 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 and are better positioned for long-term success in the AI market.

Risks of Investing in AI Stocks

Let’s have a look at the challenges that one should consider while investing in AI stocks 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 stocks India to buy 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 companies 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 AI penny stocks in India.

Tips for Investing in AI Stocks

Here we have listed out some of the best tips and strategies that you should consider before investing in artificial intelligence stocks 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 India before investing.
  •  Long-Term Investment: It is also essential to have a long-term investment perspective, as AI stocks 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 must closely monitor emerging technologies that could disrupt the AI industry.

As always, investors must conduct their own research and/or consult their financial advisor before investing.

To Wrap It Up…

Investing in AI stocks can offer potential growth opportunities, but it also comes with risks. By diversifying their portfolio, conducting thorough research, and staying up-to-date with industry news, investors can make informed decisions when investing in AI stocks 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

1. What are the 3 top AI stocks to buy in 2024?

Here are the top 3 AI companies to invest in out of a list of the top 10 AI stocks in India for 2024, based on Dividend Yield. HCL Technologies Ltd, Infosys Ltd & Oracle Financial Services Software Ltd. 

Note: This list is for educational purposes and is not recommendatory.

2. How can I invest in AI sector stocks in India?

You can easily  invest in AI stocks by following the below-mentioned steps:
1. Open a trading account with a stockbroker.
2. Consider factors such as the company’s financials, its products and services, and its competitive landscape.
3. You can buy AI stocks individually or through an exchange-traded fund (ETF).
However, you can simply invest in AI stock portfolio on smallcase.

3.  Is it a good time to invest in AI stocks in India?

Investing in the best AI stocks in India can be a good investment decision if you’re seeking long-term growth. However, it’s important to do your own research or consult a financial advisor before investing.

4. Who should invest in AI shares in India?

Investing in AI stocks is suitable for anyone who is looking for long-term growth and believes in the potential of AI shares in India. However, one must consider their risk appetite and investment goals before investing.

5. Is AI stock trading real?

Yes, AI stock trading is a practice. It utilises artificial intelligence and formulates predictions regarding stock prices.