Artificial intelligence is quickly becoming a core part of how companies across sectors work, from semiconductors and cloud infrastructure to software and large language models like ChatGPT. At the same time, inflation is easing in many regions but still above central bank targets, interest rate expectations are shifting, and energy and geopolitics are keeping markets on edge. In this environment, an AI stocks screener focused on chips, software, LLMs, ChatGPT and cloud can help you identify businesses that are directly tied to this transformation. This article highlights 3 AI-related stocks from that screener to watch closely.
Netweb Technologies India (NSEI:NETWEB)
Overview: Netweb Technologies India is a Faridabad based provider of high end computing solutions, building supercomputers, AI systems, private and hybrid cloud infrastructure, storage, servers, and networking gear, along with cloud migration and managed services for sectors such as IT, media, finance, government, defense, and research under its Tyrone brand.
Operations: Netweb Technologies India currently generates its revenue primarily from the manufacturing and sale of computer servers, which contributed ₹21,835.63 million.
Market Cap: ₹241.67 billion
Netweb Technologies India is positioned at the core of the AI build out, supplying supercomputing, AI servers, and unified data platforms like Tyrone ParallelStor Velox that are directly tied to heavier GPU and high performance workloads. Rapid earnings and revenue growth, high returns on equity, and a growing order pipeline are key factors currently supporting the business, while government backed AI and hardware policies support its position in domestic infrastructure. At the same time, a rich valuation, reliance on large government and defense orders, and funding through external borrowings mean cash flow and balance sheet quality deserve close attention. For investors who care about how AI infrastructure, growth expectations, and these funding and concentration risks fit together, the full picture on Netweb is more nuanced than the headline numbers suggest.
Netweb Technologies India sits at the heart of the AI build out, yet headline growth and order wins only tell half the story. For the full context, see the 2 key rewards and 1 important warning sign
KPIT Technologies (NSEI:KPITTECH)
Overview: KPIT Technologies builds embedded software, artificial intelligence and digital platforms that sit inside modern vehicles, powering features such as autonomous driving, advanced driver assistance, vehicle operating systems, connectivity and over the air services for global automakers.
Operations: KPIT Technologies primarily earns revenue from clients across the Americas, UK & Europe and the Rest of the World, with reported segment revenues of ₹17,938.63 million, ₹33,092.00 million and ₹32,212.98 million respectively, partly offset by ₹18,694.30 million of inter segment revenue.
Market Cap: ₹150.83 billion
KPIT Technologies gives you exposure to the shift toward software defined vehicles, with domain expertise in areas like ADAS, vehicle OS and automotive cybersecurity that is difficult for generalist IT firms to replicate. The company combines fundamentals such as a long running 21% EBITDA margin track record and net cash with pressure points investors may want to understand, including a recent earnings decline, margin compression and reliance on external borrowings. The growing solutions business, expansion into new geographies such as Vietnam and activity in EV and cybersecurity indicate there is more going on beneath the surface of KPIT than past share price weakness suggests.
KPIT Technologies sits at the intersection of long running 21% EBITDA margins, net cash and auto software demand, yet recent earnings pressure raises questions. Get the full story in the 3 key rewards and 2 important warning signs
Tata Elxsi (BSE:500408)
Overview: Tata Elxsi provides product design, engineering and software services across sectors such as automotive, media, communications and healthcare, building AI led platforms for connected vehicles, autonomous driving, digital health, OTT video, telco networks and more.
Operations: Tata Elxsi currently generates the bulk of its revenue from Software Development and Services at ₹37,846.13 million, with System Integration and Support Services contributing ₹1,018.22 million.
Market Cap: ₹218.20 billion
Tata Elxsi sits at the crossroads of automotive and healthcare AI, with multiyear product engineering deals in media and cars, a high dividend payout and platforms like NEURON, AnaTel and ViTel that are tightly linked to how clients roll out AI led networks and medical software. At the same time, a 33.3x P/E, earnings that declined 12.2% over the past year and margin pressure from AI investment mean investors need to weigh rich expectations against execution risk, client concentration in autos and leadership changes such as a new CFO. For anyone tracking AI stocks beyond pure chips or cloud, the key consideration with Tata Elxsi is how these large deals, evolving margins and the balance between steady dividends and growth plans fit together.
Tata Elxsi’s AI platforms and steady dividends hint at a story of quality that current headlines do not fully capture. Get the context behind the trade offs in the analyst forecasts for Tata Elxsi
The three stocks covered here are only a starting point, and the full Artificial Intelligence/ AI Stocks screener reveals 24 more companies tied directly to chips, software, LLMs, ChatGPT and cloud that could round out your AI watchlist. Use Simply Wall St to identify the specific catalysts and narratives that matter to you, then analyze and filter these AI stocks so you can focus on the opportunities that best match your convictions.
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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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