Artificial Intelligence Stocks: Investing Insights

Artificial Intelligence has been the talk of the town for quite some time. With the kind of evolution we have witnessed in the past few years, people are now actively looking to invest in artificial intelligence stocks. But before you go buy shares of leading or upcoming AI companies, let us first understand the industry and what moves it. 

In this blog, we explore the AI industry, how it has grown over the years, why you should invest in this sector, and what the best AI stocks are.

Artificial intelligence in India

In India, AI has proved to be a powerful catalyst for the transformation of various sectors. It has strengthened processes across industries with automation and simpler data processing. From manufacturing to logistics to customer service, businesses have embraced artificial intelligence to streamline their operations.

The introduction of AI and the subsequent automation it created initially caused concerns about technology replacing humans. However, contrary to this fear, AI has given birth to a huge demand for data scientists, AI professionals, and tech specialists. Moreover, entrepreneurs have hit the ground running by establishing startups that specialise in a particular field of AI. 

With the rise of new AI ventures and old conglomerates setting up their AI verticals, investors are looking for the best artificial intelligence stocks.

Best artificial intelligence stocks in India

If you are looking to buy shares of artificial intelligence stocks in India, here are some leading organisations. 

1. Tata Elxsi Ltd.
   Leveraging AI, VR, Cloud Computing, and IoT, this venture of Tata is working wonders in design and technology for organisations in Automotive, Broadcast, Communication, Healthcare, and Transportation. As of January 10, 2024, the stock is priced at Rs. 8,760.
2. Bosch Ltd.
   Bosch, in India, enables efficient tech services for organisations in Industrial Technology, Mobility Solutions, Consumer Goods, and Energy. With 16 manufacturing sites and 7 development centers in the country, it is leading innovation across industries. As of January 10, 2024, the stock is priced at Rs. 22,649.
3. Happiest Minds Technologies Ltd.
   Relatively young in the stock markets, Happiest Minds Technology uses AI, blockchain, cloud technology, digital process automation, VR, and other state-of-the-art technological resources to transform business efficiency, customer experience, actionable insights, and overall digital transformation. As of January 10, 2024, the stock is priced at Rs. 892.
4. Saksoft Ltd.
   With services like Application Engineering, QA & Testing, Data Analytics, Cloud Infrastructure, and Cybersecurity, Saksoft is enabling smarter technology at organisations across Fintech, Logistics & Transportation, Healthtech, and Utilities. As of January 10, 2024, the stock is priced at Rs. 318.
5. Kellton Tech Solutions Ltd.
   Kellton has offices in the US, Europe, and Asia. They provide full-fledged IT services to organisations in various sectors including healthcare, finance, retail, and manufacturing. As of January 10, 2024, the stock is priced at Rs. 103.65. 

Things to consider before investing

Understand the company

Spend considerable time researching the company’s business strategy, performance over the years, vision, and growth plans. Read about the industry, competitors, and the potential for transformation.

Financial ratios

Check the P/E, and P/B ratios along with the balance sheet. Understand how the company is valued, what its perceived value is in the market, and how the cash flow is coming along. 

Volatility

Go through the stock chart and look for the company’s beta. The beta metric tells you how volatile the stock is in contrast with the index. A more volatile stock is usually riskier than a less volatile stock.

Management Team

Look at the senior management team of the company, how experienced they are in the relevant industry, and their track record of success. The company’s long-term success depends on how strong the top management is. 

Conclusion

Over the past few years, the advent of technology has begun stirring AI stocks in India. With the industry expecting exponential growth in the coming years, investors are excited to be a part. However, before investing in any artificial intelligence stocks, it is crucial to understand the company’s vision, performance, management qualities, and growth potential.