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Feb 13
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$2.34
$2.30
-1.7%
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AVOID
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Raja Chakravorti
Professor of Economics, University of California, Berkeley
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Indian software giants (Infosys, TCS, Wipro) are down significantly (Infosys ADRs down ~9%) due to fears that AI tools like Anthropic will disrupt their business models. Investors are re-rating valuations based on the fear that AI coding agents will decimate the "body-shop" model of legacy IT services. Analysts are downgrading revenue growth forecasts to low single digits. AVOID Indian IT until the disruption impact is quantified. Oversold conditions could lead to a technical bounce; companies may successfully integrate AI to improve their own margins. |
Bloomberg Markets
How AI Is Proving to Be a Double-Edged Sword ...
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