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Goldman Sachs: Indian 'AI Enablers' Stock Group Surged 60% in 2026
A basket of 42 Indian companies dubbed "AI Enablers" by Goldman Sachs has gained approximately 60% in 2026, starkly contrasting with the Nifty index's 12% decline during the same period. The analysis from the investment bank pinpoints a high-performing segment focused on artificial intelligence infrastructure, even as the broader Indian market has underperformed global peers.
The 'AI Enablers' Cohort
Goldman Sachs identified the group after screening 1,800 listed Indian firms. The 42 companies, which have a combined market capitalization of $670 billion, are concentrated in sectors crucial for building out AI capabilities. The cohort is heavily skewed toward small and mid-cap names in capital goods, utilities, and tech hardware.
Key areas of focus for these companies include:
- Power equipment and generation
- Data center hardware and operations
- Semiconductor materials
- Semiconductor outsourced assembly and test (OSAT) services
Performance Driven by Earnings
AdThe rally since 2025 has been fueled primarily by strong earnings growth rather than an expansion of valuation multiples, according to the report. The cohort's 53% total return since 2025 was composed of 65 percentage points from earnings growth, offset by a negative 12 percentage points from valuation compression.
This trend appears set to continue, as the report notes the group is in a strong earnings upgrade cycle while the broader index is facing earnings cuts. Consensus forecasts expect the AI Enablers' earnings growth to remain ahead of the wider market for the next several years.
Market Context and Valuation
Goldman Sachs observed that India has recently been viewed as an "anti-AI" trade, with its equities among the weakest performers in major global markets since 2025. The Indian market's AI-exposed share of its index remains significantly below regional peers like Korea, Taiwan, China, and Japan.
While the absolute valuation multiples for the AI Enablers trade at a premium to the broader market, Goldman Sachs stated that their valuations are more attractive when adjusted for their growth profile. On this basis, the group trades at a slight discount to the broader MSCI India index.
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