Summary:
AI stocks in India are increasingly linked to data centres, power infrastructure, electrical equipment and semiconductors. A Goldman Sachs basket of 42 AI enablers gained about 60% in 2026, highlighting India’s broader AI infrastructure opportunity beyond traditional technology companies.
India missed the first wave of the global artificial intelligence rally, which was led largely by powerful chips and frontier AI models developed in the US and China. But the latest phase of the AI investment cycle is taking a different route in India. Instead of software companies and chip designers, the focus is increasingly shifting towards data centres, power infrastructure, electrical equipment, cooling systems and related suppliers.
A basket of 42 Indian companies identified as AI enablers has delivered an average return of about 60% since January, even as the broader market remained under pressure. The Nifty 50 had declined 12% over the same period up to September 17, highlighting the sharp divergence between the AI-linked infrastructure theme and the benchmark.
AI Stocks in India: Key Facts
| Metric | Details |
|---|---|
| AI enabler companies identified | 42 |
| 2026 AI-enabler basket return | About 60% |
| Nifty 50 performance | About -12% |
| Key AI infrastructure areas | Power, data centres, electrical equipment, semiconductors |
| Major demand driver | Data-centre and AI infrastructure investment |
| AI infrastructure exposure | Power generation, transmission, equipment, cooling, hardware and semiconductor supply chain |
| Market structure | Concentrated across capital goods, utilities and technology hardware |
| Key theme | Physical infrastructure supporting AI |
Power and infrastructure stocks lead the AI trade
The performance of several companies illustrates how the theme has spread beyond traditional technology stocks. Power Grid Corporation was at ₹269.35, up 1% since January. Adani Green Energy gained 26.3% to ₹1,293.50, while ABB India rose 36.2% to ₹7,050.
The strongest gains in the table came from CG Power, which climbed 38.9% to ₹886. Polycab India advanced 9.5% to ₹8,399, while Gujarat Fluorochemicals gained 21% to ₹4,445.
By comparison, the Nifty stood at 23,140.50, down 11.5%, while the Sensex was at 73,895.74, down 13.3% since January.
Data centre investment is creating a wider supply chain
The rally is being driven by actual investment commitments rather than sentiment alone. Amazon, Google, Microsoft, Tata, Adani and Reliance are all committing substantial capital towards data-centre expansion in India. That spending creates demand across several layers of the supply chain, including electricity, transmission equipment, generators, cooling systems, servers and semiconductor infrastructure.
The opportunity is significant. Setting up 1 gigawatt of data-centre capacity requires roughly ₹70,000 crore of investment. Around 60% of that spending goes towards components such as GPUs, storage and memory, while the remaining expenditure creates opportunities in areas including electrical equipment and infrastructure. The scale of planned investment is therefore creating a broader market for Indian suppliers.
Why the opportunity is concentrated
The gains, however, are not spread evenly across the market. The analysis points to a specific group of companies supplying the infrastructure required to build and operate data centres. The basket includes companies such as Adani Green Energy, Tata Power, Cummins India, Kirloskar Oil Engines, CG Power and Kaynes Technology, while L&T, Reliance Industries, Adani Enterprises and Bharti Airtel have also been identified separately as data-centre and AI-related players.
The trend is particularly notable because it has emerged while the wider Indian market has struggled. Recent market data also show continued investor interest in Indian data-centre exposure, although several stocks have experienced volatility.
What could drive the next phase
The key factor now is execution. India's data-centre buildout will require reliable power, transmission networks, cooling, backup systems and specialised electrical infrastructure. As new capacity moves from announcements to construction, suppliers with exposure to these requirements could see their order pipelines affected.
For investors, the distinction between companies benefiting from actual AI infrastructure spending and those simply associated with the AI theme remains important. The current performance shows where the market is seeing the opportunity, but future returns will ultimately depend on investment execution, order growth and earnings delivery.
