New Delhi, Oct. 29 -- India's artificial intelligence (AI) investment boom could create opportunities beyond traditional information technology (IT) services, with power equipment, specialised manufacturing and businesses supporting AI infrastructure emerging as potential beneficiaries. However, the investment opportunity is becoming more selective as higher capital costs and demanding valuations raise the bar for companies seeking to attract investor money.

According to Axis Mutual Fund's report, Trends Shaping Equities: Growth, Opportunities and Valuations, AI adoption is increasing demand for computing capacity, electricity and data infrastructure. At the same time, global supply-chain realignment is creating opportunities for Indian ...