Popular AI growth stocks to add to watchlist
TCS, and Google are actively involved in this space, showcasing the potential for significant returns on investments. So, with this in mind, we highlight 5 popular AI growth stocks to add to your watchlist. #1 HCL Technologies At the top of our list, we have HCL Technologies.
HCL Tech is India's fourth-largest IT company, operating in over 52 countries. The company has been adapting to new technologies, the latest being the Internet of Things, cloud computing, and cybersecurity. The growth from these segments are increasingly a large source of revenue for IT companies.
And AI is not behind. The IT firm has been working towards developing AI technology, for some time now, especially generative AI. Generative AI can produce various types of content, including text, imagery, audio, and synthetic data.
HCL Tech has been involved in the AI technology stack for the last two decades. It has 140+ projects at various stages of maturity from proof of concept to implementation. The company’s key focus areas are BFSI, manufacturing, cloud computing, life sciences and healthcare, and media and entertainment.
It has an impressive client roster. Apart from forging innovations in-house, HCL Tech has been ahead of the technology curve by investing in various partnerships. This is visible in the business performance.
The revenue and net profit have grown at a 5-year CAGR of 12.3% and 9.5%, respectively. This robust growth has led to a strong return of capital employed (RoCE) and return on equity (RoE), averaging 28.9% and 23.5% over the last 5 years. The stock is trading at a PE of 20.9x, a 10% premium to its 5-year average of 19x.
Read more on livemint.com
