The global technology sector is undergoing a paradigm shift, driven by advancements in Artificial Intelligence (AI) and semiconductors. Companies like Broadcom Inc. have demonstrated how innovations in AI-specific semiconductor technologies can lead to remarkable growth. While India is still building its semiconductor ecosystem, several Indian-listed companies are emerging as strong contenders in this domain.
In this blog, we explore promising Indian stocks that align with the global AI and semiconductor growth story. We provide insights into their business strategies, financial metrics, and growth potential, supported by data visualization.
Key Indian Stocks in the AI and Semiconductor Space
Below is a quick overview of the companies discussed in this blog:
Company
Market Cap (₹ Cr)
5Y Return
ROCE (%)
Key Focus
ASM Technologies Ltd.
1,701
113%
Negative
Embedded systems, AI
Kaynes Technology India Ltd
45,570
N/A
11.2%
IoT, electronics
Dixon Technologies
1,13,104
91.9%
29.2%
Consumer electronics, IoT
Bharat Electronics Ltd.
2,31,172
183.4%
27.1%
Defense, AI solutions
Vedanta Ltd.
2,00,702
6.82%*
18.9%
Semiconductor fabs
*Vedanta’s 6.82% reflects its high dividend yield rather than stock returns.
1. ASM Technologies Ltd.
ASM Technologies specializes in engineering services, with a strong focus on AI-driven automation and chip design.
Key Financials:
Market Cap: ₹1,701 Cr
5-Year Return: 113%
ROCE and ROE: Negative
Growth Drivers:
Expertise in embedded systems and AI.
Growing demand for industrial AI applications.
Chart: ASM’s Annual Revenue Trend (₹ Cr)
Year
Revenue (₹ Cr)
2020
200
2021
240
2022
280
2023
340
Chart will show a steady upward trajectory.
2. Kaynes Technology India Ltd.
Kaynes Technology is a pioneer in IoT solutions and electronics manufacturing.
Key Financials:
Market Cap: ₹45,570 Cr
ROCE: 11.2%
Focus Areas:
End-to-end electronics manufacturing services.
IoT-enabled industrial solutions.
Graph: Kaynes vs. Sector Average ROCE (%)
Year
Kaynes (%)
Sector Avg (%)
2020
10.0
8.5
2023
11.2
9.0
3. Dixon Technologies (India) Ltd.
Dixon is a leader in consumer electronics manufacturing, now venturing into semiconductor production under the PLI scheme.
Key Financials:
Market Cap: ₹1,13,104 Cr
5-Year Return: 91.9%
ROCE: 29.2%; ROE: 24.7%
Growth Highlights:
Expansion into IoT devices and semiconductor manufacturing.
Bar Chart: Dixon’s Segment-Wise Revenue Contribution (2023)
Segment
Contribution (%)
Consumer Electronics
45%
IoT Devices
25%
Semiconductors
20%
Others
10%
4. Bharat Electronics Ltd. (BEL)
BEL dominates the defense electronics space and is expanding into AI-based solutions for strategic industries.
Key Financials:
Market Cap: ₹2,31,172 Cr
Dividend Yield: 0.70%
Why Consider BEL?:
High ROCE (27.1%) and ROE.
Strategic collaborations in defense and AI technologies.
Pie Chart: BEL’s Revenue by Sector (2023)
Sector
Revenue Share (%)
Defense
60%
AI & Strategic Tech
20%
Commercial Electronics
20%
5. Vedanta Ltd.
Vedanta is making significant strides in semiconductor and display glass manufacturing.
Key Financials:
Market Cap: ₹2,00,702 Cr
Dividend Yield: 6.82%
Growth Potential:
Planned ₹60,000 Cr investment in semiconductor fabrication.
Collaborations with global leaders like TSMC and Foxconn.
Table: Vedanta’s Key Investments in Semiconductors (2024–2027)
Year
Investment Focus
Budget (₹ Cr)
2024
Chip Fabrication Plants
20,000
2025
Display Glass Units
15,000
2026
R&D & Collaborations
10,000
2027
Expansion
15,000
Why Indian Stocks Hold Promise in AI and Semiconductors
India’s semiconductor and AI markets are projected to grow exponentially, driven by:
Government Incentives: The Production-Linked Incentive (PLI) scheme is a game-changer for semiconductor manufacturing.
Growing Domestic Demand: Industries like consumer electronics, electric vehicles, and IoT are driving demand for advanced semiconductors.
Global Collaborations: Partnerships with global giants like TSMC and Foxconn are accelerating India’s tech transformation.
Indian technology and semiconductor stocks represent a mix of high-growth opportunities and calculated risks. Companies like Dixon Technologies and Vedanta showcase robust growth initiatives, while ASM Technologies and Kaynes Technology are capitalizing on niche markets in AI and IoT.
Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Please consult a SEBI-registered advisor for personalized investment guidance.
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