IT stocks back in favour as AI jitters batter global chip shares worldwide

India’s information-technology stocks outperformed global semiconductor shares by the widest margin on record this week, with analysts expecting the trend to continue as the artificial-intelligence trade wobbles.

An index of India’s biggest software exporters surged almost 12 per cent during the week compared with a 7.2 per cent drop in an MSCI gauge of global chip stocks. AI shares have tumbled in recent days as slowing revenue growth, worries about infrastructure financing, and fears of rate hikes have fueled concerns that the companies are overvalued.