AI Stocks In India: Today we will be covering a topic that is said to be the future of information technology. It has the potential to transform the entire world. I am talking about Artificial Intelligence or AI. In this article, I am covering, What is AI? What are the real-world applications of AI at present?
What is the future of AI in India? Which are the top 5 AI stocks in India?
It was first introduced way back in 1950 by the Father of Computer Science Alan Turing when he raised the question “Can machines think?” AI leverages computers and machines to mimic problem-solving and decision-making capabilities But of course, it is for limited tasks and narrow capacity.
AI is used in daily life like:
- Speech Recognition: In Apple’s Siri or Amazon’s Alexa.
- Customer Service: Virtual chatbots.
- Image Processing: Used in social media or self-driving cars.
- Recommendation Engines: In search engines, ad recommendations, social media, and streaming services
- Automated Stock Trading: Rule-based computer-operated stock trading
A lot of AI applications that are in use daily are what we call “narrow” or “weak” AI which is primarily rule-based and has a limited set of functions. For example, there is a specific set of commands that you can order Siri or Alexa to do only in a specific sequence and in specific languages.
Given the vast potential for AI and its applications, it is expected to have a big impact on technological development in the future.-
- The major advantage of AI is that it can complete repetitive, detail-oriented tasks with a very small margin for error as compared to humans. Like assembling a car or sifting through vast amounts of data like going through legal documents very fast.
- Thus, AI is expected to bring in a new industrial revolution With all repetitive tasks being done by machines through AI automation and only critical decision-making tasks being left for humans.
- This can be replicated almost everywhere with AI expected to integrate into our daily lives as time goes on.
- The AI space in India may not be as developed as other tech-based economies like the US but numerous startups are coming up in diverse segments like Edtech, agriculture tech, and others using AI.
- Many programs are running in India for AI development promotion like AI Game Changers by Nasscom India is expected to have 100 AI startups by 2025.
According to Accenture, AI has the potential to add $957 billion or 15% of the current Indian GDP by 2035.
The majority of this will be added through industrial and manufacturing automation and the digital transformation of corporates in India. India also has a big scope for AI development given the vast talent pool the country has in the IT space and the high young graduate population.
Also Read:- Top 5 Ethanol Stocks in India
The top 5 AI stocks in India as per market cap by this criterion are:
As every software company is involved in AI, we will be avoiding major software giants like TCS and Infosys who are involved in many other fields, I will specifically be discussing companies that are focusing majorly on AI applications, so here is the list of top 5 AI stocks in India.
1. TATA Elxsi
- Tata Elxsi is another big Engineering Research & Development player in India.
- It is a leading provider of design and tech services across industries including Automotive, Media, Communications, and Healthcare.
- The company’s major focus in AI/ML applications is in the media and broadcasting space and the autonomous vehicles space.
- Tata Elxsi’s market cap is 49,841 crores.
- Its PE is 90.8.
What Are Index Fund? How It Works
2. L&T Technology Services
- LTTS is an engineering services, research & development (ER&D) company.
- It is a listed subsidiary of the Indian Conglomerate Larsen & Toubro.
- LTTS provides end-to-end digital and engineering solutions for a variety of industries like Transportation, Industrial Products, Telecom and Hi-Tech, Medical Devices, and Plant Engineering.
- The company has over 69 Fortune 500 clients and it has a total of 283 clients around the world.
- The company’s major focus in AI/ML is on building AI solutions for industrial use-cases.
- L&T Technology Services’ market cap is 31,194 crores.
- Its PE is 33.4.
3. Persistent Systems.
- Persistent System is a leading player in the digital and cloud transformation space in India.
- The company has an active client base of over 1000 companies
- It has partnerships with many industry majors including AWS, IBM, Salesforce, red hat, Microsoft, Appian, Google, Snowflake, and others.
- The company’s focus on AI is mainly in the digital banking and healthcare software solutions spaces.
- Persistent Systems’ market cap is 24,868 crores.
- Its PE is 37.5
4. Affle India.
- Affle India is a technology company that works mainly in the Platform-As-A-Service model.
- The company has a proprietary consumer intelligence platform that tracks and delivers consumer acquisitions, engagements, and transactions through relevant mobile advertising for its clients.
- The services under its platform are online marketing automation, ad recommendations, customer data, behavior tracking, and end-to-end growth marketing.
- It serves many industry segments like Ecommerce, Entertainment, EdTech, Fintech, Foodtech, FMCG, and many others.
- Affle India’s market cap is 13,536 crores.
- Its PE is 63.3.
5. Happiest Minds.
- Happiest Minds is an IT company that specializes in disruptive technologies like artificial intelligence, blockchain, digital process automation, the internet of things, robotics/drones, security, virtual/augmented reality, and others.
- The company has over 186 active clients.
- HM services Automotive, BFSI, Consumer packaged goods, e-commerce, edtech, engineering, hi-tech, manufacturing, retail, and travel sectors.
- In the AI space, Happiest Minds provides data science and big data engineering services along with AR/VR applications.
- Happiest Minds’ market cap is 12,125 crores.
- Its PE is 65.0
We learned the basic idea of AI and how it works in our daily lives and the top 5 AI stocks in India.
The stocks mentioned in this article are for educational purposes and are not investment advice.
Top AI Stocks in India FAQ
What is an AI?
Use of an AI?
Customer Service: Virtual chatbots.
Image Processing: Used in social media or self-driving cars.
Recommendation Engines: In search engines, ad recommendations, social media, and streaming services
Automated Stock Trading: Rule-based computer-operated stock trading