AI Fears Crash I.T. Stocks, But Experts See A Massive Buying Opportunity

Despite recurring concerns around AI disruption and weakness in global technology stocks, Indian I.T. companies continue to attract attention due to their compelling valuations. Sharad Avasthi, Head of Research (PCG), SMIFS believes the recent correction has created attractive opportunities across the sector, particularly in large-cap names such as Infosys and TCS, as well as mid-cap players like Cyient, Hexaware and Coforge. He highlights that while AI-led transformation may lead to short-term challenges and changes in business models, Indian I.T. firms have spent the last few quarters de-risking operations and preparing for the shift. As these efforts begin reflecting in earnings, investor concerns could ease, making the current correction an opportunity for long-term investors.