Nomura: AI Panic Overblown, IT Stocks Face Short-Term Pain, Long-Term Gain
Nomura: AI Panic Overblown, IT Stocks Face Short-Term Pain, Long-Term Gain
- •Indian IT stocks declined 15% since early 2026 due to AI fears, but Nomura sees this as a transition phase.
- •AI tools are causing deflation in traditional IT services, leading to slower revenue growth and margin pressure.
- •Nomura predicts short-term pain but long-term growth, with new services demand from enterprise AI adoption.
- •Valuation scenarios range from bear (10-12x earnings) to bull (higher multiples with deep transformation).
- •Infosys, TCS are safe bets; Persistent, LTIMindtree, Coforge offer high growth potential in AI.
