Goldman Sachs Identifies AI-Enabling Power Generation Stocks Amid India's Slowing Market

India's stock market may be masking an opportunity related to Artificial Intelligence (AI) investments. Despite a 12% decline in the Nifty index in 2026, AI-linked companies have seen a surge due to increasing demand for power, data centers, and semiconductor infrastructure needed to support global AI development. Goldman Sachs has identified five power-generation stocks that are enabling AI growth.

Adani Green Energy is one of these stocks, with a listed market capitalization of over $22 billion and 6-month average daily traded volume (ADTV) of $52 million. The company's earnings growth stands at 70%, capex intensity at 235%, free cash flow at -109% of sales, and a 12-month forward price-to-earnings ratio of 60x.

Tata Power, another identified stock, has a listed market capitalization of about $12 billion and 6-month ADTV of $28 million. The company's earnings growth is 12%, capex intensity is 32%, free cash flow is -5% of sales, and its 12-month forward PE is 23x.

The other identified stocks are NTPC Green Energy, ACME Solar Holdings, and Clean Max Enviro Energy Solutions. These companies have varying levels of market capitalization, earnings growth, capex intensity, free cash flow, and price-to-earnings ratios.