Remember JARVIS from Iron Man? The super-smart AI that helped Tony Stark save the day? Well, AI isn’t just a movie fantasy anymore — it’s quickly becoming a reality. Imagine a future where AI not only answers our questions but anticipates our needs, just like JARVIS. And guess what? This future is closer than you think!
According to Statista, the AI market will reach a whopping $827 billion by 2030, up from $184 billion in 2024.
Just like renewable energy, AI is turning into one of the most exciting investment opportunities out there. So, how can you ride this wave and invest in AI stocks, especially in India? Let’s find out.
Let’s first understand what AI stocks are.Lucknow Wealth Management
Artificial Intelligence (AI) stocks are shares of companies involved in the world of AIUdabur Stock. This could mean developing AI software, designing hardware optimized for AI processes, or providing AI-based services. Key AI technologies include machine learning, natural language processing, computer vision, and generative AI.
However, while many companies claim to be in the AI space, not all of them are truly in the game. Some are genuinely driving AI innovation, while others are just riding the hype wave.
So, let’s find out how you should go about finding AI investments in India.
Data as of Sept 12, 2024.
Finding AI investments in India is easier than you might think. A simple online search will give you several articles listing AI stocks to kick-start your research.
Some of the commonly mentioned AI stocks in India include:
While large IT companies have the resources to invest heavily in AI developments, but they may not see significant AI-driven revenue growth immediately.
On the other hand, smaller, AI-focused companies, like Datamatics and Saksoft, could offer faster growth potential, though they also come with higher risks due to market volatility. Take the company Kellton Tech, for example. In addition to its other lines of business, Kellton Tech offers services in AI and ML.
Kellton’s 3-year profit growth is negative. Its ROE is ultra low. It is currently loss-making.
So, it may not be a great company to bet on.Varanasi Investment
This means that not all AI-related companies are worth investing in. Consequently, don’t get carried away just because a company is doing ‘something’ in AI.
Now, we are not saying that Kellton is a poor company per se or that it can’t turn around, though it does appear to be in not-so-good shape currently. The idea is that you should dig deeper and not go by face value alone.
Whether you prefer to bet on established companies or explore opportunities with smaller, specialized firms, review their annual reports and financials before considering your AI investments in India.Simla Investment
One of the most efficient ways to gain exposure to AI in India is through Exchange Traded Funds (ETFs) that track the performance of top IT companies.
Take the Nippon India ETF Nifty IT, for example — it includes leading IT companies like TCS, Infosys, and Wipro, all of which are stepping up their AI game.
However, remember, AI is still a small slice of their revenue pie, so it might take some time before these companies realize AI’s full potential.
Alternatively, you could go straight to the source by investing in smaller companies that are directly involved in AI development, like Datamatics or Saksoft. These companies have shown promising growth, but they come with higher risks, so investing in them requires thorough research and careful risk management.
Whether you go big with the giants or niche with the newcomers, there are plenty of paths to explore in the world of AI investing.
AI isn’t just one thing—it evolves through different stages, each representing a new level of intelligence and capability.
Here’s a quick look at the 10 stages of AI:
Currently, most AI investments are in the first three stages, but future breakthroughs could push us towards AGI or even further.
Investing in AI stocks can be a great way to tap into the rapid growth of this transformative technology. But remember, along with tremendous opportunities, AI comes with its fair share of risks.
Thorough research, diversification, and a clear understanding of the company’s AI strategy are critical before making any investment decisions. As AI continues to evolve, staying informed and adaptable will be the secret to making the most of this AI revolution.
So, are you ready to ride the AI wave?
Ahmedabad Investment