Brokerage firm Motilal Oswal predicts a fresh AI-driven cycle in IT spending, shifting focus from hardware to software, services, and integration. The firm has upgraded stocks like Infosys, Mphasis, Zensar, and Coforge, citing strong potential as companies move toward large-scale AI deployment. Investors are advised to watch these picks closely.
The conversation around technology stocks is heating up again, and this time it’s not about quarterly earnings—it’s about the next phase of artificial intelligence (AI) adoption. According to Motilal Oswal Financial Services, the IT sector may be on the brink of AI Wave 2.0, where spending shifts from chips and cloud infrastructure to software, services, and operational deployment.
Major Takeaways
AI Wave 2.0: Expected to begin mid-2026, moving from experimentation to large-scale deployment.
Stock Picks: Motilal Oswal highlights Infosys, Mphasis, Zensar Technologies, and Coforge as top beneficiaries.
Upside Potential: These stocks could see gains of up to 67%, driven by demand for AI services.
Sector Impact: Indian IT firms are well-positioned in integration, application, and operationalization, areas critical to AI expansion.
Market Context: After months of sluggish demand, AI adoption could revitalize IT sector growth.
Notable Updates
The brokerage notes that incremental hardware gains are slowing, pushing companies to invest in AI-driven applications.
Indian IT firms’ expertise in custom solutions and global delivery models makes them prime candidates for this shift.
Conclusion: Motilal Oswal’s analysis suggests that AI Wave 2.0 could redefine IT sector growth, with select Indian tech stocks poised to benefit. For investors, this marks a crucial moment to align portfolios with the next big AI opportunity.
Sources: Financial Express, Zee Business, Economic Times Tamil