Goldman Sachs Pins Hopes on Indian 'AI Enablers' for Future Growth

Goldman Sachs has identified a group of Indian companies it calls 'AI Enablers' that have seen significant growth in recent years. These AI Enablers, which include companies focused on power equipment, data center hardware, and semiconductor materials, have a combined market capitalization of $670 billion across the power, data center, and semiconductor segments.

The investment bank screened 1,800 listed companies to find these 'AI Enablers', which represent the best-performing segment in the Indian market. Since 2025, this group has seen a 53% return, with 65 percentage points coming from earnings growth and -12 percentage points from valuation compression.

Goldman Sachs notes that India has become an 'anti-AI' trade, with Indian equities among the weakest performing major markets globally since 2025. However, the AI Enablers group is expected to continue growing ahead of the broader market, with consensus forecasts predicting earnings growth for these companies over the next several years.

While absolute multiples for AI Enablers trade at a premium to the broader market, when adjusted for their growth profile, they trade slightly below the broader MSCI India index.