AI-Led Tech Craze Leaves Mega Indian Software Stocks in the Dust
- Gauge of IT stocks has fallen into correction and still pricey
- Earnings, valuations ‘at risk’ from failure to evolve: Choksey
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Shares of India’s vaunted IT outsourcing firms are facing a reality check, as global investors’ rush into the artificial intelligence theme starts to leave pricey old-economy tech stocks behind.
Unlike counterparts in the developed world and China, Indian software makers including leader Tata Consultancy Services Ltd. have yet to make significant advances in generative AI. That combined with a still cloudy outlook for client spending may soon leave them looking like the tech bets of yesterday.