3 Indian AI Stocks Retail Investors Are Watching For Software And Infrastructure Exposure

Artificial intelligence is becoming a core ingredient in everything from chips to cloud services and productivity software, and that is where the AI Stocks screener comes in. While investors weigh cooling inflation against sticky price pressures, shifting rate expectations and energy market swings, many are also looking for companies directly connected to the ChatGPT and broader AI build out. This article highlights 3 of the best stocks from the screener, focusing on semiconductors, software, large language models and cloud infrastructure that sit at the heart of this transformation and may interest investors building long term exposure to the AI theme.

Netweb Technologies India (NSEI:NETWEB)

Overview: Netweb Technologies India designs and manufactures high end computing solutions in India, including supercomputers, AI systems, private and hybrid cloud infrastructure, high performance storage, and data centre servers sold under the Tyrone brand, serving sectors such as IT services, media, banking, government, defence, education, and research.

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

Market Cap: ₹245.13 billion

Netweb Technologies India sits in the middle of India’s push into AI infrastructure, with AI servers, supercomputing and cloud platforms that already serve government and enterprise clients, and recent products like Tyrone ParallelStor Velox aimed at easing AI data bottlenecks. Forecasts for earnings and revenue growth are strong, with high forecast ROE and margins that reflect its in house solutions. At the same time, the stock trades on a very high P/E and depends heavily on large government and defence orders, which can make cash flows less predictable. Upcoming capital raising plans and ongoing R&D also matter for future returns, so investors who want exposure to AI hardware and infrastructure may view this as a compelling story that comes with high expectations.

Surging interest around Netweb Technologies India’s AI servers and high P/E often masks the full risk reward picture, so it is worth running through the 2 key rewards and 1 important warning sign to see what might be missing

KPIT Technologies (NSEI:KPITTECH)

Overview: KPIT Technologies builds embedded software, artificial intelligence and digital platforms that power modern vehicles, from advanced driver assistance and autonomous driving to battery management and connected car services for global automakers and mobility companies.

Operations: KPIT Technologies currently generates its revenue primarily from international markets, with ₹17,938.63 million from the Americas, ₹33,092 million from the UK & Europe, and ₹32,212.98 million from the Rest of the World.

Market Cap: ₹152.92 billion

KPIT Technologies sits at the intersection of AI and auto software, writing the code that controls everything from driver assistance to over the air diagnostics. The stock trades on a P/E well below both its peer group and the wider Indian software sector, while earnings growth is forecast in the mid teens. The company kept EBITDA margins at 21% for 22 quarters and runs with low employee attrition. However, profit margins have tightened, the dividend track record is patchy, and funding leans heavily on external borrowing. Recent Vietnam expansion and a push into automotive cybersecurity illustrate how KPIT is trying to extend its edge in vehicle software, leaving investors to weigh higher quality earnings against execution and funding risks that still need watching.

KPIT Technologies’ P/E discount to peers, long running 21% EBITDA margins, and fresh bets on automotive cybersecurity suggest the market may be missing something. Get the full picture in the 3 key rewards and 2 important warning signs

Tata Elxsi (BSE:500408)

Overview: Tata Elxsi develops product design, engineering and AI driven software platforms for sectors such as automotive, media, telecom and healthcare, offering solutions that range from autonomous driving and connected vehicles to OTT video, AI video analytics and digital health tools.

Operations: Tata Elxsi currently generates most of its revenue from Software Development and Services at ₹36,647.99 million, with ₹926.25 million coming from System Integration and Support Services.

Market Cap: ₹229.97 billion

Tata Elxsi provides exposure to the AI build out behind connected cars, streaming media and healthcare, supported by large multi year engineering deals and a dividend yield of about 2%. The company is expanding its auto and health AI platforms, while also managing thinner profit margins, slower revenue growth than the wider Indian market and a P/E above the software industry average, which can reduce the margin of safety for investors. Recent alliances with global car makers and JSW Motors, along with new healthcare AI tools, are key developments for the business. Investors may wish to balance these factors against funding risks and a share price that analysts generally view as close to fair value.

Tata Elxsi’s premium P/E and expanding auto and health AI platforms suggest the story is still unfolding. See how the analyst forecasts for Tata Elxsi fit with margins and funding risks that could quietly reshape the thesis.

The three stocks in this article are only a starting point, with the full Artificial Intelligence/ AI Stocks screener revealing 24 more companies tied directly to chips, software, LLMs, ChatGPT and cloud infrastructure with equally compelling AI narratives. Use Simply Wall St to identify, filter and analyze the specific catalysts that matter to you so you can focus on the highest conviction opportunities in this theme.

Take Control of Your Investment Journey

If KPIT Technologies or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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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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