5 Top Artificial Intelligence Penny Stocks in India 2024

Artificial Intelligence (AI) is an emerging industry with high growth potential, which is why investors are constantly searching for investment opportunities in this sector. There are few companies in the AI sector that are publicly listed, but their share prices may be too high for a normal retail investor. AI penny stocks present a unique investment opportunity as it allows you to invest in the emerging AI sector with a small investment capital.

In this blog, we are going to talk about the best AI penny stocks in India, the difference between a normal penny stock and an AI penny stock, and the benefits and the future of the AI industry.

What is Artificial Intelligence (AI) Penny Stock?

Penny stocks are the stocks or shares of small companies with low market share prices and very low market capitalization. AI penny stocks are shares of small companies focussing on artificial intelligence. These companies have the potential to provide significant returns for investors but are also highly risky. It is essential to thoroughly analyze these companies before investing. These penny stocks are suitable for those who have little capital and a high-risk tolerance.

5 Best AI Penny Stocks List

We have listed the 5 Best Artificial Intelligence penny stocks, which are trading at market prices below ₹100.

Overview of Best AI Penny Stocks Companies

An overview of the best AI penny stocks are:

1. Infibeam Avenues Ltd

Infibeam Avenues is an Indian fintech company established in 2007 by Vishal Mehta. Infibeam provides digital payment services, eCommerce platforms, digital lending, data cloud storage and omnichannel enterprise software across the globe. Headquartered in Gujarat, Infibeam is listed on the BSE and NSE, driving innovation in India’s digital economy. Infibeam Avenues is actively working in the AI space by integrating artificial intelligence and machine learning technologies into its digital payment and e-commerce solutions. In 2024, the company launched THEAI, a video AI developer platform that can be used for sports analytics, media optimization, crowd control, etc. 

2. Subex Limited

Subex Limited is a Bangalore-based Software company that provides communication services. Established in 1992 as a marketing company, it now provides services like revenue assurance, fraud detection and network analytics. Subex is expanding its operation as a telecom AI company, enabling fraud management solutions for over 75% of the world’s top 50 telcos. Subex leverages Artificial Intelligence (AI) across the data value chain through its HyperSense line of offerings to empower communication service providers and enterprise customers.

3. OnMobile Global Ltd (ONMO)

OnMobile, originally incorporated in California, came to India in 2000. OnMobile became the first Indian company to go public as a telecom VAS company when it was listed on BSE and NSE in 2008. OnMobile is an Indian Bangalore-based telecommunication company. The products OnMobile offers are Videos, Tones, Games & Contests. OnMobile has 100+ million active subscribers and serves 99 customers across the globe. Lately, OnMobile Global launched a mobile gaming platform named “ONMO” for interactive gaming experience. ONMO is redefining the mobile gaming space. With offices in Canada, Sweden and India, ONMO blends streaming, social gaming, e-sports, and AI into a unique mobile gaming offering.

4. Vedavaag Systems Limited

This Hyderabad-based company was established in 1998 as an e-governance company. Over the years, it has evolved as a niche player in citizen services delivery management, which includes financial inclusion, e-governance solutions, cloud-enabled IOT-based AI & ML solutions, Retail & Logistics and online education services across India in partnership with various Nodal agencies and public sector undertakings like SBI, ITI, BSNL, BEL, etc. Vedavaag went public in 2009 and is currently operating in 18 states across India.

5. SecureKloud Technologies Ltd

The company was established in 2008 and was formerly known as 8k Miles. The company changed its name to SecureKloud in 2021. SecureKloud is a key player in Blockchain, Cloud, Big Data, Enterprise Security, Decision Engineering and Managed Services. The company enables digital transformation for global enterprises to help their customers navigate the digital world. They transform the way companies do business through their cloud-based solutions that are equipped with cutting-edge capabilities, promising reliable security and compliance. Building on their premier partnerships with AWS and GCP and with their approach of providing technology-led solutions, they have helped organizations, including Fortune 500 giants, embrace the cloud with security and agility while following industry best practices.  

What is the Difference Between Normal Penny Stocks and AI Penny Stocks?

In this section of the blog, we will discuss the difference between normal penny stocks and AI penny stocks.

Benefits of Investing in AI Penny Stocks

However, there are countless benefits to investing in AI stocks; we are listing a few benefits of investing in AI stocks in India below:

• Long-term prospectus: AI stocks have long-term potential. Investors can earn huge returns from holding AI stocks with a long-term view. 
• Diverse Application: AI technologies have diverse applications in various sectors, from healthcare to retail, opening up many doors for growth and proper diversification across industries and reducing risk.
•  Competitive market advantage: By analyzing and investing in AI companies with competitive advantage, you can invest in companies that have the potential to outperform their competitors and capture large market shares.

Future of Artificial Intelligence (AI)

Valued at USD 638.23 billion globally in 2024, India’s AI market is currently valued at USD 6.26 billion. This market size is predicted to grow with a CAGR of 28.63% from 2024 to 2030 to achieve a market volume of USD 28.36 billion. Continuous R&D spending and innovative ideas can drive the development of more advanced technologies across industries, providing significant returns for investors. The Indian AI industry’s share of the global market rose from 1.3% in 2010 to 5.6% in 2021. The use of AI in the advertising and media segment was extensive, with the largest domestic revenue share in 2023; however, it is expected that AI use in the healthcare sector will account for a greater share by 2030.

How to Invest in Artificial Intelligence (AI) Penny Stocks?

By this time, you might be thinking of including AI stocks in your portfolio. Below is a step-by-step guide to investing in AI stocks in India.

Step 1: Select a Broker – Choose any stockbroker and open a Demat account with him. Visit Pocketful’s website, complete the KYC process and upload the scanned copies of documents to open a Demat account.

Step 2: Identify and Analyse AI stocks – Before investing in a certain stock, it is always wise to research diligently. Consider the fundamentals of the companies, industry trends, growth prospects, etc.  

Step 3: Place your order – Place a market order to buy at the current market price or limit order, which means buying only when the price reaches a certain level.

Step 4: Monitor your investment – Monitor the performance of your portfolio regularly. Consider the impact of industry news, quarterly earnings, etc., and rebalance the portfolio when necessary.

Conclusion

AI  penny stocks make it possible to invest in a revolutionizing industry without significant capital. Artificial Intelligence has wide-scale applications, which makes it a sector with immense future growth potential. Despite being highly risky, AI penny stocks attract investors who are willing to take on high risks for high profits. It is important to analyze the fundamentals of these companies, industry trends, and investor sentiment before investing. 

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