Indian shares have been under pressure, with the Sensex recently falling over 1,000 points and the Nifty50 slipping below 22,900 as foreign investors sell and oil worries grow. That kind of broad pullback can hide potential bargains in artificial intelligence related businesses. This article highlights three stocks from a focused screener of underpriced AI plays that could interest investors looking beyond short term volatility.
The three AI related stocks in this article are only a starter plate, while the full screen on Simply Wall St has highlighted 3 more businesses with equally compelling ChatGPT and automation narratives that are not covered below. To identify and analyze your own highest conviction ideas among underpriced AI and semiconductor opportunities, head straight to the Undervalued Artificial Intelligence/ AI Stocks screener .
KPIT Technologies (NSEI:KPITTECH)
Overview:KPIT Technologies builds embedded software, artificial intelligence systems and digital platforms that power autonomous and software defined vehicles for global automakers.
Operations:KPIT Technologies generates most of its revenue from the UK & Europe at ₹34,668 million, with significant contributions from the Americas and Rest of the World.
Market Cap:₹141.4 billion
KPIT Technologies matters in this AI screener because it applies artificial intelligence directly inside vehicles, from perception software to cloud connected mobility platforms that automakers rely on as they rewire cars around code.
"The catalyst sequence is: Q1 FY27 results confirming organic revenue growth above 3% constant currency, Europe revenue sustaining above 8% YoY, and a first explicit disclosure of solutions as a percentage of revenue."
What happens to KPIT Technologies' AI ambitions if one unseen pressure quietly reshapes the balance between rich software contracts and profitability?
That pressure point is exactly what the full narrative for KPIT Technologies unpacks, showing how KPIT Technologies could balance rich software demand with margins as vehicle software spending accelerates.
Newgen Software Technologies (NSEI:NEWGEN)
Overview:Newgen Software Technologies builds the NewgenONE platform, using embedded AI to automate document heavy workflows and customer engagement for large enterprises.
Operations:Newgen Software Technologies generates ₹16,104 million from software and programming, with revenue spread across India, the USA, APAC, and EMEA.
Market Cap:₹68.6 billion
Newgen Software Technologies fits this AI screener through NewgenONE, where agentic AI and intelligent document processing turn complex back office work into software driven workflows.
"The ongoing acceleration in global digital transformation, including rising demand for cloud adoption, automation, and artificial intelligence, expands Newgen's addressable market; management highlighted strong client interest in AI-led workflow solutions and recent expansion of AI-driven features, which is expected to drive recurring subscription revenue and long-term revenue growth."
What happens to Newgen's AI rich automation story if a single pressure point quietly shifts the trade off between higher deal wins and profitability?
That trade off is exactly what the full narrative for Newgen Software Technologies unpacks, revealing how Newgen Software Technologies could convert accelerating AI demand into durable contracts without letting profitability quietly erode.
Birlasoft (NSEI:BSOFT)
Overview:Birlasoft delivers global IT services while tying into the AI theme through GenAI test automation, AI risk analytics, and intelligent document platforms.
Operations:Birlasoft generates about ₹20.4b from Manufacturing, ₹10.9b from Life Sciences & Services, ₹13.3b from BFSI, and ₹9.3b from Energy & Utilities.
Market Cap:₹76.6b
Birlasoft matters for this AI screener because its LynX, TruLens, Supplier Risk Radar, and document intelligence tools connect directly to how enterprises are trying to bring ChatGPT style capabilities into day to day workflows, rather than treating AI as a side experiment.
"Surging adoption of automation and AI across global enterprises is rapidly reducing reliance on traditional IT services, and with 70 percent of Birlasoft's revenue dependent on short-term, project-based discretionary spend, the company is acutely exposed to accelerating client shifts toward in-sourcing, automation, and annuity-based contracts, which will lead to sustained revenue volatility and potential revenue decline."
What happens to Birlasoft's AI driven test, risk, and document platforms if a single shift in client buying patterns quietly rewrites margin expectations?
That margin reset is where the full narrative for Birlasoft shows how Birlasoft could turn automation pressure into an accelerating, higher quality revenue mix.
Seeking Fresh Alternatives Before They Fly
Markets move fast and the best breakout stories rarely stay under the radar for long. Scan fresh ideas before the momentum is fully caught and consider acting while opportunities are still developing.
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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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