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 artificial intelligence company stocks in India. The growing importance of artificial intelligence stocks in India has also been reflected in the stock market, with AI stocks in India attracting investors’ attention. In this blog, we will explore the benefits, risks, and top 10 artificial intelligence stocks to invest in India.
What are AI Stocks in India?
Before understanding which AI companies to invest in, let’s first understand artificial intelligence in India. Artificial Intelligence refers to the emulation of 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 stocks refer to shares or investments in companies that are heavily involved in the development, application, and advancement of artificial intelligence (AI) technologies.
Best Artificial Intelligence Stocks in India
Here is a list of top artificial intelligence stocks of the 2023 of artificial intelligence industry with AI share prices & market capitalization:
|Company Name||Market Cap (in Cr)||Share Price|
|Tata Elxsi Ltd||₹45,923||₹7,383.35|
|Persistent Systems Ltd||₹37,454||₹5,106.35|
|Affle (India) Ltd||₹14,516||₹1,087.9|
|Happiest Minds Technologies Ltd||₹13,377||₹902.35|
|Kellton Tech Solutions Ltd||₹770||₹79.75|
Note: The data is from 28th August, 2023. However, for real-time updates on stock prices and market trends, visit smallcase stocks collection today!
Now, that we have covered what artificial intelligence stocks to buy in India, let’s understand why we should invest in the artificial intelligence industry.
Why Invest in Open 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 AI services companies 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 looks promising. Additionally, the use of Jampp, a programmatic advertising platform to accelerate mobile businesses is on the rise as well.
As AI sector stocks 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.
Best Artificial Intelligence Shares in India 2023 – Overview
Here’s an overview of the 3 best AI companies in India:
Bosch Ltd is an Indian subsidiary of the German multinational engineering and technology company, Robert Bosch GmbH. They provide technology and services in areas such as automotive, industrial technology, and consumer goods.
- Low Risk: Stock is 1.62x as volatile as Nifty
- Midcap: With a market cap of ₹54,654 cr, the stock is ranked 114
Tata Elxsi is an Indian design and technology company that provides engineering services and solutions across various industries such as automotive, healthcare, broadcast, and communication. They specialize in product engineering, design and visualization, and system integration.
- Midcap: With a market cap of ₹45,923 cr, the stock is ranked 141
- Moderate Risk: Stock is 2.23x as volatile as Nifty
Persistent Systems Ltd
Persistent Systems Ltd is an Indian multinational company that provides software product development services, integration, and support services. It offers services in various domains such as healthcare, financial services, life sciences, and telecommunications. The company’s services include digital transformation, cloud computing, cybersecurity, and enterprise mobility.
- Moderate Risk: Stock is 2.73x as volatile as Nifty
- Midcap: With a market cap of ₹37,894 cr, the stock is ranked 159
How to Invest in Artificial Intelligence (AI) Stocks in India?
One way to invest in artificial intelligence shares in India is through traditional stock market investing. This involves investing in the listed artificial intelligence companies in India and buying shares of stock 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 provide exposure to a diversified portfolio of AI companies.
Mutual funds are another option for investing in artificial intelligence shares in India. These are professionally managed investment portfolios that pool money from multiple investors to buy a diversified portfolio of stocks. Like ETFs, there are a variety of mutual funds that focus on AI investing.
Investing in AI Stocks via smallcase
You can also invest in a basket of Artificial Intelligence stocks 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 stock, considering your long-term investment goals and risk appetite.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolio of stocks/ETFs, that are based on a theme idea or strategy.
- They’re created and managed by SEBI-registered experts,
- smallcase.com offers over 200+ stock portfolios, created by 180+ managers.
- Some of the popular smallcases among new investors are as follows:
Disclosures for aforementioned smallcases
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 that are leaders in AI technology are expected to experience significant growth.
- Higher Returns: Investing in artificial intelligence stocks in India can provide many benefits, including the potential for high growth and returns. Although the AI industry is still in its early stages, its products and services will continue to rise, leading to increased profits and 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.
Risks of Investing in AI Stocks
Let’s have a look at the challenges that one should consider while investing in AI stocks.
- Volatility: As with any investment, there are risks involved in investing in AI stocks. One of the main risks is the volatility of the stock market. AI stocks 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, as new breakthroughs in technology are needed to continue advancing the field.
- 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 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 and conduct thorough research on companies before investing.
- Long-Term Investment: It is also essential to have a long-term investment perspective, as AI stocks can be 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.
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. With the growing importance of AI in various industries, the future looks promising for AI companies in India that are listed on the NSE, making it an exciting time to invest in AI stocks in India.
Here are the top 3 AI companies to invest in – Tata Elxsi, Kellton Ltd & Happiest Minds Technologies. However, it’s important to do your own research or consult a financial advisor before investing.
You can easily invest in AI stocks by following the below mentioned steps:
1. Open a trading account with a stockbroker.
2. Research AI stocks. Consider factors such as the company’s financials, its products and services, and its competitive landscape.
3. Make a purchase. You can buy AI stocks individually or through an exchange-traded fund (ETF).
However, you can simply invest in AI stock portfolio on smallcase.
Investing in the best artificial intelligence stocks in India can be a good investment decision if you’re seeking long-term growth and high returns in the future
Investing in AI sector stocks is suitable for anyone who is looking for long-term growth and believes in the potential of AI shares in India.
Yes, AI stock trading is a practice. It utilizes artificial intelligence and formulate predictions regarding stock prices. Nevertheless it doesn’t guarantee profits and conducting research beforehand is essential when considering the utilization of an AI stock trading platform.
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