AI Stocks To Watch In India For Real Exposure To The ChatGPT Buildout

The AI stocks screener focuses on companies tied directly to the ChatGPT and artificial intelligence build out, from semiconductors and chips to cloud and software. With inflation, central bank decisions and energy prices keeping bond yields and volatility in focus, many investors are looking at businesses linked to automation, data processing and digital tools that can support productivity and efficiency. This article highlights 3 stocks from the AI screener that stand out on business exposure to this theme. It is designed to help you quickly identify where AI, LLMs and cloud infrastructure sit inside listed companies today.

Netweb Technologies India (NSEI:NETWEB)

Overview: Netweb Technologies India designs and manufactures high end computing systems in India, supplying supercomputers, AI servers, private cloud and hyperconverged infrastructure, data centre hardware, and related software and services under its Tyrone brand to customers across IT services, finance, media, government, defense, education, and research.

Operations: Netweb Technologies India currently generates its revenue primarily from the manufacturing and sale of computer servers, contributing ₹21,835.63 million.

Market Cap: ₹236.65 billion

Netweb Technologies India gives you direct exposure to the hardware and software backbone of AI, from supercomputers and AI servers to cloud platforms like its new Tyrone ParallelStor Velox, while also reporting high earnings growth, strong return on equity and healthy margins. The flip side is a very rich P/E multiple alongside dependence on large, sometimes lumpy government and defense orders, limited exports, and funding that leans on external borrowing, which can affect cash flows and share price swings. For investors focused on AI infrastructure rather than just consumer facing applications, the real question is whether Netweb’s mix of in house R&D, expanding order book and policy support is enough to offset those concentration and funding risks.

Netweb Technologies India’s high earnings growth, strong return on equity and rich P/E multiple point to a story that could be accelerating faster than many expect, so it is worth reading the 2 key rewards and 1 important warning sign

KPIT Technologies (NSEI:KPITTECH)

Overview: KPIT Technologies builds embedded software, artificial intelligence and digital platforms for global carmakers, supplying the code that powers autonomous driving, electric and connected vehicles across the Americas, UK, Europe and other international markets.

Operations: KPIT Technologies primarily earns revenue from clients in the UK & Europe, the Rest of the World and the Americas, with reported segment revenues of ₹33,092 million, ₹32,212.98 million and ₹17,938.63 million respectively, partly offset by ₹18,694.3 million of inter segment revenue.

Market Cap: ₹158.76 billion

KPIT Technologies is one of the more focused ways to invest in automotive software for AI enabled, software heavy vehicles. The stock has been under pressure after earnings fell 24.1% and margins softened, even as EBITDA margin remained at 21% for an extended stretch and the business maintained a net cash position. The company operates at the intersection of ADAS, vehicle operating systems and cybersecurity, with a growing solutions business and new programs in India, China and Southeast Asia. It also faces slower revenue growth than the wider Indian market, lower net margins and dependence on global auto budgets. For investors screening for AI exposure that is tied to engineering capabilities rather than hype, there is more to the KPIT Technologies story than the recent share price suggests.

KPIT Technologies sits at the crossroads of autonomous and electric vehicles, yet recent earnings pressure and softer margins may be masking key strengths. It is worth reading the 2 key rewards and 2 important warning signs

Tata Elxsi (BSE:500408)

Overview: Tata Elxsi provides product design, engineering and software services that sit behind many connected cars, streaming platforms, telecom networks and medical devices, using AI across platforms for autonomous driving, video analytics, digital health and telecom automation.

Operations: Tata Elxsi generates the bulk of its revenue from Software Development and Services at ₹37,846.13 million, with a smaller contribution of ₹1,018.22 million from System Integration and Support Services.

Market Cap: ₹220.49 billion

Tata Elxsi gives you broad AI exposure across automotive, media, telecom and healthcare, from its Neuron autonomous network platform with Sky to new MedTech tools like AnaTel and ViTel, while still paying a 2.12% dividend and delivering a current net profit margin of 16.7% and return on equity of 21.5%. At the same time, a rich P/E, recent earnings pressure, funding that relies fully on external borrowings and project delays in the automotive vertical mean execution and capital allocation matter a lot. For investors tracking how real AI workloads translate into cash flows, the mix of large multi year deals, expanding AI platforms and valuation tensions at Tata Elxsi deserves a closer look.

Tata Elxsi’s mix of AI platforms, 2.12% dividend yield and 21.5% return on equity hints at a story where valuation tensions might be missing a bigger twist, so it is worth reading the analysis report for Tata Elxsi

The three AI stocks covered here are only a starting point. The full screener surfaces 24 more companies directly tied to semiconductors, LLMs, cloud infrastructure and the wider ChatGPT build out that may have equally compelling stories. To identify and analyze the highest conviction ideas for your own watchlist, use the Artificial Intelligence/ AI Stocks screener that lets you filter by the catalysts and narratives that matter most to you.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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