Gen AI not an existential threat: Nuvama predicts $300-400 billion market expansion for Indian IT services
Indian IT stocks could see a rebound as artificial intelligence (AI) adoption moves from pilot projects to large-scale enterprise deployments. Nuvama Research, remains positive on the IT services sector over the medium to long-term, despite near-term volatility.
After the tech sector delivered stable execution in Q1FY27, Nuvama expects growth momentum to improve in Q2FY27 as well as several large deals enter the ramp-up phase.
“We do not see any existential threat from Gen AI, but do believe that in the near-term IT Services firms shall face cannibalisation of revenue (which they are facing currently) before they reach inflection point,” Nuvama noted.
