IT stocks under pressure: How investors should restructure their tech portfolio in 2026 amid AI disruption

Technology stocks worldwide are experiencing sharp volatility amid concerns over rapid advancements in artificial intelligence (AI) and their potential impact on the broader IT sector.

The Nifty IT index is down 20% so far in February, with stocks like TCS, Infosys, Tech Mahindra, HCL Tech, and Coforge falling 15-25%, amid concerns that AI may render traditional outsourcing services redundant. This is because AI can now write code, deploy systems faster and more efficiently, and even fix bugs.