I.T. Sector In Transition: AI Creates Opportunities And Challenges

After correcting more than 30% from recent highs, I.T. stocks have witnessed a sharp rebound, raising questions about whether the sector has become attractive again. While valuations and free cash flow yields are starting to look appealing, uncertainty around the long-term impact of artificial intelligence continues to weigh on the industry's outlook. Business Today TV’s Shailendra Bhatnagar discussed with Vaibhav Sanghavi, CEO of ASK Hedge Solutions, that the sector is undergoing a significant transition as business models evolve in response to AI-driven changes and potential revenue pressures. With visibility on future earnings and growth still limited, investors may prefer a cautious approach until there is greater clarity on how the I.T. services landscape will look over the next one to two years.