Top 10 Artificial Intelligence Stocks to Invest in 2024

Introduction

Investing in artificial intelligence (AI) stocks presents both exciting opportunities and unique challenges. AI technology has the capacity to revolutionize various sectors, attracting investors keen on capitalizing on its transformative potential. However, it’s crucial to recognize the associated risks and conduct thorough research before venturing into this dynamic market. This article will introduce you to the top 10 AI stocks in India, so you can make an informed investment decision in 2024. It will also delve into why investing in AI stocks is compelling and how to navigate this landscape effectively.

Why Invest in AI Stocks?

From autonomous vehicles to robotic surgeries, AI is reshaping our future, promising significant advancements across industries. In India, the AI sector is experiencing remarkable growth, with its market size projected to reach $1,597.1 billion by 2030.

Businesses in healthcare, manufacturing, finance, and retail are increasingly embracing AI technologies, propelling the industry forward. Notably, pioneering companies like OpenAI are leading the charge with groundbreaking innovations like ChatGPT, boasting 100 million users within months of launch. Such developments underscore the immense potential of AI in India’s technological landscape, making it an enticing investment avenue.

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

Investing in AI stocks in India can be accomplished through various channels. Traditional stock market investing involves directly purchasing shares of listed AI companies. Alternatively, investors can explore exchange-traded funds (ETFs) or mutual funds specializing in AI, offering exposure to diversified portfolios of AI-centric companies. These avenues provide flexibility and cater to different investment preferences, allowing investors to participate in the AI revolution according to their risk appetite and financial goals.

Top 10 AI Stocks in India (2024)

Here are the top 10 AI stocks in India based on market cap, return on equity (ROE), return on capital employed (ROCE), and sales growth.

Bosch Ltd

NSE: BOSCHLTD | BSE: 500530

Bosch Ltd, an Indian subsidiary of the German multinational, excels in providing technology and services across automotive, industrial technology, and consumer goods sectors. With a strong market presence and a focus on innovation, Bosch is positioned as a key player in the AI landscape.

• ROE: 13.31%
• ROCE: 17.46%
• Sales Growth: 26.72%
• Market Cap: ₹81,078.02 Cr.

Oracle Financial Services Software Limited

NSE: OFSS | BSE: 532466

Oracle Financial Services Software Limited caters to the financial services industry, providing IT solutions tailored to corporate, retail, investment banking, and treasury operations. As a subsidiary of Oracle Corporation, the company offers a comprehensive suite of banking products, facilitating digital transformation and operational efficiency.

• ROE: 30.83%
• ROCE: 39.74%
• Sales Growth: 9.23%
• Market Cap: ₹67,320.65 Cr.

Persistent Systems Ltd

NSE: PERSISTENT | BSE: 533179

Persistent Systems Ltd is a prominent player in the software product development services sector. Specializing in building software products and offering complete product lifecycle services, Persistent Systems boasts a strong track record of innovation and partnerships. The company’s software and frameworks, coupled with pre-built integration and acceleration capabilities, position it as a leader in the AI domain.

• ROE: 22.85 %
• ROCE: 29.29%
• Sales Growth: 43.13%
• Market Cap: ₹66,543.20 Cr.

L&T Technology Services Ltd

NSE: LTTS | BSE: 540115

L&T Technology Services Ltd is a leading provider of engineering solutions, leveraging cutting-edge technology to cater to diverse industry needs. With a customer base that includes Fortune 500 companies and top ER&D players, L&T Technology Services offers a comprehensive suite of services ranging from design and analysis to prototyping and testing.

• ROE: 25.95%
• ROCE: 36.83%
• Sales Growth: 21.02%
• Market Cap: ₹57,408.85 Cr.

Tata Elxsi Ltd

NSE: TATAELXSI | BSE: 500408

Tata Elxsi Ltd specializes in designing and developing computer hardware and software, operating across two key segments: System Integration & Support and Software Development & Services. The company’s expertise spans various sectors, including automotive, healthcare, and telecom, offering technology consulting, new product design, and development services.

• ROE: 40.97%
• ROCE: 51.80%
• Sales Growth: 27.28%
• Market Cap: ₹46,234.03 Cr.

Cyient Ltd

NSE: CYIENT | BSE: 532175

Cyient Ltd specializes in software-enabled engineering and GIS services, catering to diverse sectors such as data & network operations, engineering, and manufacturing. With a global presence and a focus on innovation, Cyient offers end-to-end solutions to enhance operational efficiency and drive business growth.

• ROE: 13.57%
• ROCE: 18.07%
• Sales Growth: 27.27%
• Market Cap: ₹ 23,274.88 Cr.

Affle (India) Ltd

NSE: AFFLE | BSE: 542752

Affle (India) Ltd has demonstrated impressive financial performance, with substantial revenue growth and commendable profitability metrics. With a robust balance sheet and a focus on innovation, Affle presents an attractive investment opportunity in the AI domain.

• ROE: 7.69%
• ROCE: 10.30%
• Sales Growth: 24.47%
• Market Cap: ₹15,979.50 Cr.

Happiest Minds Technologies Ltd

NSE: HAPPSTMNDS | BSE: 543227

Happiest Minds Technologies Ltd has exhibited strong financial performance, characterized by robust revenue growth and exceptional profitability metrics. With a healthy balance sheet and a focus on long-term growth, Happiest Minds is well-positioned to capitalize on opportunities in the AI sector.

• ROE: 29.06%
• ROCE: 28.96%
• Sales Growth: 28.93%
• Market Cap: ₹12,599.98 Cr.

Zensar Technologies Ltd

NSE: ZENSARTECH | BSE: 504067

Zensar Technologies Ltd is a prominent player in digital solutions, assisting global organizations in their digital transformation journey. With a strong track record of partnerships and a focus on innovation, Zensar is poised for sustained growth in the AI landscape.

• ROE: 14.21%
• ROCE: 19.22%
• Sales Growth: 11.94%
• Market Cap: ₹11,776.96 Cr.

RateGain Travel Technologies Ltd

NSE: RATEGAIN | BSE: 543417

RateGain Travel Technologies Ltd offers web-based solutions for the hospitality and travel sector, with a history of successful acquisitions and expansions. With a focus on innovation and customer-centric solutions, RateGain presents an attractive investment proposition in the AI domain.

• ROE: 0.90%
• ROCE: 1.59%
• Sales Growth: 55.72%
• Market Cap: ₹9,778.09 Cr.

Benefits of Investing in Best Stocks in 2024

• Growth Potential: AI’s rapid expansion across sectors promises substantial growth opportunities for invested companies.
• Diversification: Investing in AI stocks enables portfolio diversification, reducing overall investment risk.
• Innovation: AI companies drive technological innovation, allowing investors to participate in cutting-edge developments.
• Efficiency and Productivity: AI adoption leads to enhanced efficiency and productivity for businesses, translating to potential revenue growth.
• Competitive Advantage: Companies implementing AI gain a competitive edge, potentially resulting in higher stock prices.
• Long-Term Growth: As AI matures and integrates further into various industries, long-term investors stand to benefit from sustained growth.

Conclusion

Investing in AI stocks in India offers promising prospects for growth and diversification. However, it’s essential to approach this market with caution, conducting thorough research and aligning investments with individual risk profiles and financial objectives. By staying informed and leveraging available investment avenues, investors can potentially harness the transformative power of AI to bolster their portfolios.

Hope our curated list of the top 10 AI stocks in India help you make better investments in 2024 and get great returns. If intrigued by the opportunities presented by these AI stocks, consider opening a demat account with Angel One for a seamless investment experience.

Note: All rates, values, and predictions are stated as of the date of publishing this article.