7 AI Proxy Stocks Investors Are Watching in 2026

Sterlite Technologies

Sterlite Technologies has emerged as a major Indian AI proxy stock in 2026, with shares rising sharply as demand for optical fibre and data connectivity grows. The company provides optical networking solutions that support high-speed data transmission. As AI applications generate more data, telecom networks and fibre infrastructure become increasingly important. This trend has drawn investor attention towards companies supporting the digital infrastructure behind AI growth.

HFCL

HFCL benefits from demand for fibre-optic cables, telecom equipment, and communication infrastructure. Its shares gained attention in 2026 as investors looked towards companies supporting India's expanding AI and data centre networks. The company operates in areas that help improve data transmission and network capacity. Continued investment in broadband, 5G, and digital connectivity could create opportunities for HFCL, although its stock performance will also depend on orders, earnings, and market conditions.

MTAR Technologies

MTAR Technologies has attracted investor attention as an indirect AI infrastructure play. The company specialises in precision engineering and supplies components for sectors such as clean energy, aerospace, and defence. Although it is not a direct AI company, investors may view advanced manufacturing businesses as potential beneficiaries of wider technology infrastructure spending. Its future performance will depend on order growth, execution, profitability, and demand across its key business segments.

Syrma SGS Technology

Syrma SGS Technology is among the Indian companies attracting attention in the broader AI proxy trade. Its electronics manufacturing business offers indirect exposure to rising technology hardware demand. The company provides electronic manufacturing services and develops products for several industries. As businesses invest in connected devices, industrial electronics, and digital systems, manufacturers such as Syrma SGS could find new opportunities. However, AI-related demand remains only one factor influencing its overall business outlook.

TD Power Systems

TD Power Systems has benefited from investor interest in power infrastructure linked to AI expansion. Data centres require reliable electricity to operate servers, cooling systems, and networking equipment. This has increased attention on companies involved in power generation equipment and related technologies. TD Power Systems manufactures AC generators used in different industrial applications. Its long-term prospects will depend on order inflows, export demand, project execution, and wider investment in power infrastructure.

Hitachi Energy India

Hitachi Energy India has become a notable AI proxy stock as data centres require dependable electricity infrastructure. The company provides power transmission and grid technologies that help manage electricity supply. Growing demand from AI computing facilities could encourage further investment in transformers, grid equipment, and power systems. Its business also serves utilities and other industrial customers, so investors should consider the wider energy market, order pipeline, valuation, and earnings growth when assessing the stock.

Kirloskar Oil Engines

Kirloskar Oil Engines has gained attention as an indirect beneficiary of AI data centre expansion. Its business includes engines and power generation solutions that can support backup electricity requirements. Data centres need dependable power systems to reduce disruption during outages and maintain continuous operations. This creates a possible opportunity for suppliers of backup power equipment. However, investors should examine the company's financial performance, order growth, competition, and valuation before treating it as an AI-related investment.

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