AI-Led Concerns Trigger Sharp Declines in US Tech Stocks, Indian IT ADRs Mirror Weakness

Key Highlights:

• On February 17, 2026, US-listed tech stocks including Cognizant, Accenture, Wipro ADRs, EPAM Systems, and Globant saw notable declines.
• The selloff was driven by growing fears of AI disruption, with investors worried that rapid advances in artificial intelligence could reshape traditional IT service models.
• Market sentiment was further dampened by diminishing expectations of a near-term US Federal Reserve interest rate cut, adding pressure to valuations.
• Infosys ADRs showed marginal resilience, bucking the broader downward trend.
• Analysts caution that Indian IT majors like Infosys, TCS, Wipro, and HCL Tech may remain under pressure as global trends spill over into domestic markets.

Contextual Insight:  
The sudden decline highlights a structural shift in investor perception. AI is increasingly seen as both an opportunity and a threat—while it promises efficiency, it also raises concerns about redundancy in traditional outsourcing and IT services. This duality has triggered volatility across global tech counters, with Wall Street reflecting heightened caution.

Market Impact:

• Cognizant ADRs slipped 2.06%, while EPAM Systems fell 2.5% and Globant dropped 1.9%.
• Wipro ADRs declined 4.6%, while Infosys ADRs plunged nearly 10% earlier in the week, underscoring the scale of investor anxiety.
• The Nifty IT index in India fell 1.5% on February 18, mirroring US trends and signaling continued turbulence for the sector.

Investor & Industry Angle:  
For investors, the selloff underscores the need to reassess exposure to IT services stocks amid AI-driven uncertainty. While long-term prospects for AI integration remain strong, near-term volatility is expected as companies recalibrate business models. Industry leaders are now under pressure to demonstrate adaptability and innovation to reassure markets.

Broader Significance:  
This episode reflects a global revaluation of technology services. As AI adoption accelerates, firms that fail to pivot risk losing relevance. For Indian IT companies, the challenge lies in balancing traditional outsourcing strengths with AI-led transformation, a pivot that will define competitiveness in the coming years.

Sources: Mint, News18, The Times of India, CNBC-TV18