Best AI Stocks to Invest in 2024 for Long-Term

AI Sector Overview

The world's economy will expand further with the expected contribution of up to $15.7 trillion by 2030 from artificial intelligence, much more than the combined GDP of China and India. An AI revolution is imminent in India, which has the third-largest talent pool in the world. 

This is expected to boost India's investment in AI capabilities, which was valued at $881 million in 2023, at a compound annual growth rate of 30.8%. India's AI sector is expected to reach a value of $7.8 billion by 2025 and is expected to be built on the burgeoning semiconductor industry. 

Today’s blog will cover the Best AI Stocks to Buy and also shed light on artificial intelligence listed companies in India.

Top AI Stocks to Invest in 2024

Let's see some top AI stocks in India in 2024 that are performing well and also see their market strengths.

1. TCS (Tata Consultancy Services)

TCS renders services that include software design and integration as well as strategic consultation. It is well known for its innovations in the digital, cloud, and AI space and is part of the Tata family.

 

Its PE ratio is 30.4, ROE is 51.5%. The book value is 281. TCS's market cap is Rs.14,65,325 Cr with a Share price of Rs.4050 and one-year returns are 19.9%

This company has 71.77% reserved for promoters, 12.66% for foreign Institutions (FIIs), 10.86% for DIIs, and 4.66% for public as of September 2024. 

 

2. Infosys Ltd.

Infosys Ltd is among the world's leading companies in the field of IT services and consulting established in the year 1981 by Narayana Murthy. The primary service of the company is software development and maintenance. Innovation, digital transformation, and artificial intelligence are highly successful in the company.

The PE ratio is 28.8, ROE is 37.1%. The book value is 31.8. The Infosys market cap is Rs.7,76,119 Cr with a Share price of Rs.1869 and one-year returns are 36.7%.

This company has 14.43% reserved for promoters, 33.28% for foreign Institutions (FIIs), 37.81% for DIIs, and 14.01% for public as of September 2024. With strong financials, it is among the top AI companies in India.

 

3. HCL Technologies

HCL Technologies Ltd is one of India's major global IT service companies founded in 1976 by Shiv Nadar, it specializes in IT consulting, software development, and business process outsourcing.

Its PE ratio is 29.9, ROE is 23.3%. The book value is 254. The HCL market cap is Rs.5,02,137 Cr with a Share price of Rs.1850 and one-year returns are 50.2%.

This company has 60.82% reserved for promoters, 18.67% for foreign Institutions (FIIs), 15.78% for DIIs, and 4.53% for public as of September 2024. 

Best AI Stocks Performance Overview

Advantages of Investing in Artificial Intelligence (AI) Stocks

• The AI market will be USD 267 billion by the year 2027, thus making it an outbursting sector. Businesses in fields such as health care, banking, and retail are being affected by AI. In other words, those who are the leaders in AI technology will gain much.

• There are a plethora of advantages associated with investing in Indian AI stock, chief among which is the potential for great expansion. Although the AI sector is quite young, its products and services are increasing and may be able to elevate the prospect of higher returns on stocks.

• There is a possibility of diversification also in the case of buying Indian AI stocks. In other words. AI is applied in many different enterprises; therefore one can be exposed to several industries by investing in Indian AI stocks. 

 

Factors to Consider Before Investing in AI Stocks

AI Strategy of the Company: Determine whether the company has a sound AI strategy. In annual reports, investor presentations, and other formal papers, look for references to artificial intelligence.

Examine the company's financial health by looking at its return on equity (ROE), debt levels, profit margins, and sales growth. Seek out businesses with low debt, robust profit margins, and consistent sales growth.

Market Position: Recognize the company's competitive edge and market position. Does it lead the way in AI development, or does it lag behind its rivals?

Investment Diversification: Take into account spreading your money among both major and minor AI companies. You can then weigh the possible dangers and benefits.

Conclusion

Essentially, AI stocks in India have been on the rise and seem to be giving tremendous potential to investors based on companies like TCS, Infosys, and HCL that boast outstanding financials and have made considerable improvements to AI technology. Investment in AI stocks is oriented towards diversified returns with a good investment decision as one weighs the AI strategy and financial health of each company. The impact AI makes in industries will brighten the future of these stocks.

Disclaimer

This blog is NOT any buy or sell recommendation. We do NOT advise/suggest/recommend anyone to involved or invest in stock buying/selling, or trading activities. Trading or buying or selling securities is a market risk-based activity. The data presented in this blog are at the time of writing this content (as of 24 October 2024) and can change with time. Investors should do research, consult with their financial advisors, and consider risk tolerance, financial ambitions, and investment goals before financial investments.