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Goldman Sachs: India's AI Enablers See Soaring Earnings Amid Nifty Cuts
M
Moneycontrol•22-09-2026, 13:19
Goldman Sachs: India's AI Enablers See Soaring Earnings Amid Nifty Cuts
- •Goldman Sachs identifies a 42-company basket of Indian "AI Enablers" with surging earnings estimates, contrasting with cuts for the broader Nifty 500.
- •Calendar 2027 EPS estimates for AI Enablers rose 22% in 2026, while Nifty 500 estimates were cut by 2%.
- •Data-centre hardware led upgrades with a 95% estimate increase, followed by power equipment (15%) and semiconductor materials (8%).
- •The AI Enabler basket gained 60% in 2026, outperforming the Nifty's 12% decline, driven by earnings accumulation, not just valuation expansion.
- •Goldman Sachs expects AI Enablers to contribute significantly to Nifty 500 profit growth, with strong projected earnings growth for power generation and data-centre hardware.
Key Questions Answered
In 2026, calendar year 2027 earnings-per-share estimates for Goldman Sachs's 42-company basket of Indian AI enablers have risen 22 percent, while estimates for the broader Nifty 500 have been cut by 2 percent.
Data-centre hardware led the upgrades with a 95 percent increase, followed by power equipment at 15 percent and semiconductor materials at 8 percent.
Goldman Sachs estimates that only 16 percent of MSCI India's market capitalization is exposed to AI-related themes, which is significantly lower than Korea and Taiwan at 70 to 80 percent.
