5 Stocks to Watch as India Doubles GPU Capacity

India is set to nearly double its graphics processing unit (GPU) capacity under the national artificial intelligence (AI) mission, aiming to expand from around 18,693 GPUs to 29,000 GPUs.

This expansion is part of the IndiaAI Mission, which was approved in 2024 with a budget of about Rs 103 billion (bn) over five years to strengthen AI capabilities in the country.

The GPU capacity expansion aligns with India's broader vision of becoming a global AI powerhouse by 2047, supporting economic growth, governance, and societal progress through cutting-edge AI technology.

The initiative fosters an inclusive AI ecosystem by making world-class AI infrastructure affordable and accessible beyond privileged entities, empowering students, startups, and innovators across the country.

Here are 5 stocks that can benefit from India's doubling of GPU capacity.

#1 MosChip Technologies

First on the list is MosChip Technologies.

MosChip offers end-to-end services covering silicon design, verification, product engineering, AI/ML solution design, and IoT solutions.

MosChip Technologies stands to gain significantly from the National AI Mission and the doubling of India's GPU capacity, thanks to its strategic focus on semiconductor design, AI/ML engineering, and embedded systems.

The mission's push for AI adoption across industries increases opportunities for MosChip to design, optimise, and deploy AI models on cloud and edge platforms (CPUs, GPUs, TPUs), leveraging the expanded compute infrastructure.

MosChip Technologies Financial Snapshot (FY20-24)

(Rs m, consolidated)	FY20	FY21	FY22	FY23	FY24
Net Sales	993	1,052	1,476	1,984	2,939
Net profit	-460	-92	65	62	99
Return on Equity (%)	-77.1	-18.4	10.8	6.3	13.2
Return on Capital Employed (%)	-66.9	-1.0	24.6	12.4	6.9

Source: Equitymaster

On the financial front, the company reported losses in FY20 and FY21 but managed to turn the corner in FY22. For the quarter ending December 2024 net profits have surged to Rs 121 million (m) from Rs 4.86 m in the corresponding period of the previous year.

Going forward, the company's ability to handle the full machine learning pipeline-from data management to model deployment-makes it a preferred partner for businesses integrating AI into their operations.

For more details check the MosChip Technologies factsheet and quarterly results.

#2 E2E Networks

Second on the list is E2E Networks.

E2E Networks provides accelerated cloud computing solutions with cutting-edge GPUs such as NVIDIA A100, H100, and H200, catering to AI/ML, NLP, computer vision, and generative AI workloads.

It's the first company in India to deploy large clusters of NVIDIA H200 Tensor Core GPUs, significantly enhancing its ability to provide high-performance AI compute infrastructure.

This positions E2E as a leading provider for enterprises, startups, and researchers needing advanced GPU resources for AI model training, inference, and generative AI applications.

E2E Networks is a key player in the government's large-scale GPU tender, which is central to the National AI Mission's goal of democratising access to AI compute.

This involvement ensures a steady flow of government-backed AI workloads to E2E's cloud infrastructure, further boosting its business and market relevance.

E2E Networks Financial Snapshot (FY20-24)

(Rs m, consolidated)	FY20	FY21	FY22	FY23	FY24
Net Sales	251	353	519	662	945
Net profit	-94	-12	65	99	219
Return on Equity (%)	-39.4	-4.6	16.9	20.4	32.1
Return on Capital Employed (%)	-38.5	-30.9	14.1	28.1	21.6

Source: Equitymaster

Net profits at E2E Networks have grown from Rs 65 m in FY22 to Rs 219 m in FY24. While in the years FY20 and FY21 the company did make losses, it has turned the corner in FY22.

Looking forward, E2E Networks is scaling its infrastructure to meet the rising demand for AI/ML workloads, aiming to empower startups, enterprises, and research institutions in India's rapidly evolving digital and AI ecosystem.

For more details check the E2E Networks factsheet and quarterly results.

#3 Tata Communications

Third on the list is Tata Communications.

Tata Communication offers a broad portfolio of services including cloud hosting, managed network and security services, collaboration tools, Internet of Things (IoT) connectivity, and media services.

The company is deploying one of the largest NVIDIA Hopper GPU-based cloud supercomputers in India, positioning itself as a leading provider of high-performance AI compute resources.

Tata Communications Financial Snapshot (FY20-24)

(Rs m, consolidated)	FY20	FY21	FY22	FY23	FY24
Net Sales	170,680	171,001	167,247	178,383	209,688
Net profit	-870	12,537	14,779	17,668	9,496
Return on Equity (%)	6.8	1,085.80	159.3	116.4	53.3
Return on Capital Employed (%)	11.1	22.5	34.1	38.2	27.7

Source: Equitymaster

In FY24 margins contracted and net profits fell. However, in FY25 the company has done much better. For the quarter ending March 2025, the net profit surged to Rs 10.4 bn from Rs 3.21 bn in the corresponding period of last year.

Going forward, Tata Communications is among the select companies bidding to supply GPUs for the IndiaAI Mission, which involves government procurement of thousands of GPUs. Success in these tenders can drive substantial business growth and reinforce Tata's role as a strategic partner in India's AI ecosystem.

The company will be expanding this year with the addition of NVIDIA Blackwell GPUs, to remain at the forefront of AI cloud services.

For more details check the Tata Communications factsheet and quarterly results.

#4 Rashi Peripherals

Next on the list is Rashi Peripherals.

Rashi Peripherals distributes a wide range of ICT products including routers, adapters, RAM, cameras, gaming and graphic cards, power supplies, storage devices, input devices, monitors, motherboards, networking equipment, and server processors.

Rashi Peripherals Financial Snapshot (FY20-24)

(Rs m, consolidated)	FY20	FY21	FY22	FY23	FY24
Net Sales	39,357	59,250	93,134	94,543	110,947
Net profit	401	1,364	1,825	1,233	1,439
Return on Equity (%)	17.0	34.6	31.7	17.6	9.3
Return on Capital Employed (%)	35.9	45.6	46.9	34.7	19.5

Source: Equitymaster

In the last few years, Rashi Peripherals profitability has remained inconsistent. For the quarter ending December 2024, the company reported a net profit of Rs 308 m, up from Rs 255 m in the corresponding period of last year.

Rashi Peripherals benefits from the Indian government's semiconductor push, primarily through increased local manufacturing focus and investments in research and development (R&D).

The current policy environment supports Rashi Peripherals' expansion in semiconductor and AI-related product distribution, enabling it to capitalise on the growing domestic production and demand for advanced technology components.

For more details check the Rashi Peripherals fact sheet and quarterly results.

#5 Orient Technologies

Next on the list is Orient Technologies.

Orient Technologies is an Indian IT solutions company. It specialises in delivering comprehensive IT infrastructure, cloud, cybersecurity, data center solutions, and managed services to a diverse clientele including banking, pharmaceutical, manufacturing, and small to medium enterprises.

Orient Technologies Financial Snapshot (FY21-24)

(Rs m, consolidated)	FY21	FY22	FY23	FY24
Net Sales	2473	4674	5351	6029
Net profit	1	335	383	414
Return on Equity (%)	0.2	35.6	29.7	23.6
Return on Capital Employed (%)	3.6	47.5	40.4	32.2

Source: Equitymaster

Orient Technologies has shown consistent growth in net profits over the last few years. Net profits for the quarter ending December 2024 surged to Rs 126 m from Rs 108 m in the corresponding period of last year.

With the government's push to make GPUs accessible to academia, startups, MSMEs, and public sector agencies, Orient Technologies can leverage this ecosystem to offer AI-enabled IT solutions, digital transformation services, and cloud migration support.

Going forward, Orient Technologies continues to enhance its IT infrastructure solutions, including data center services and end-user computing, alongside expanding cloud and data management services such as cloud migration, analytics, and cybersecurity.

The doubling of outlay for GBU capacity under the national AI mission is certain to benefit the company.

For more details check the Orient Technologies fact sheet and quarterly results.

Conclusion

India's plan to nearly double its GPU capacity to 29,000 units under the National AI Mission is set to deliver broad-based benefits across the technology and business ecosystem.

Industries such as healthcare, education, finance, and manufacturing can utilise enhanced GPU capacity to deploy AI-driven solutions for diagnostics, personalised learning, fraud detection, automation, and more.

With India's data center capacity growing strongly, companies in cloud computing, storage, and IT infrastructure will benefit from the surge in demand for GPU-powered services. This opens up new revenue streams and business models, such as GPU-as-a-Service.

To sum up, India's doubling of GPU capacity is a strategic move that will empower companies across the spectrum-from startups to large enterprises-to innovate, scale, and compete globally in AI, data science, and digital transformation.

The initiative not only strengthens computational infrastructure but also catalyses a vibrant, self-reliant tech ecosystem.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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