TCS share price targets: Stock sinks 16% since Anthropic AI buzz - Will Tata-OpenAI partnership aid recovery?

Shares of Tata Consultancy Services (TCS) are down over 16% since the Anthropic AI tool affected markets on February 3, sparking fears of an AI-led disruption. TCS shareholders' wealth has plunged by Rs 1.89 lakh crore till date as global markets and IT firms gauge the effect of Anthropic AI tool on the industry. 

Despite a marginal rally due to the software major's partnership with OpenAI today, the stock is still oversold on charts with a RSI of 25.6. An RSI below 30 mark signals there are more sellers for the stock than buyers. 

The large cap IT stock hit a 52-week low of Rs 2,579 on February 13. The software major stock trades below all long-term and short-term simple moving averages, signallng bearish stance of investors toward the IT stock. 

In the current session, the TCS stock was trading on a flat note at Rs 2679.10 against the previous close of Rs 2694.50. In early deals, the TCS share price rose as much as 1.98% to Rs 2,748 per share on partnership with OpenAI. But later it shed gains. 

Market cap of TCS stood at Rs 9.69 lakh crore on Thursday. TCS stock is down 29% in a year and lost 17% in 2026. te  
 
Price targets and outlook 

Choice broking has a 'buy' call on TCS with a target price of Rs 3,950.  According to the brokerage, the IT major reported stable large-deal wins, led by GenAI, cost optimisation, and vendor consolidation. 

JM Financial has downgraded TCS from ‘Buy’ to ‘Add’, with its target price pared by over 22% to Rs 2,960 from Rs 3810. The brokerage expects TCS' margins in FY27 to remain lower due to the BSNL deal ramp-up and a strategic pivot towards growth over margins.