Infosys Share Price Jumps Over 2% Today As AI Outlook Boosts Sentiment; Stock Up 8% In Five Sessions
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Infosys shares continued their recent recovery on October 14 after gaining more than 4% in the previous session. The stock has now climbed around 8% in five sessions as buying returns to large-cap IT counters.
Infosys share price jumped more than 2% on Wednesday, October 14, extending its winning run to a fifth straight session as renewed buying in IT stocks and CEO Salil Parekh's outlook for artificial intelligence kept the country's second-largest IT services company in focus.
Infosys shares were trading at ₹1,087 on the NSE at 12:18 pm, up ₹24.90 or 2.34%. The stock had jumped 4.13% in the previous session and has now gained around 8% over the past five trading sessions, marking a sharp recovery after the recent weakness in IT stocks.
The latest leg of the rally comes as Parekh expects artificial intelligence to account for a much larger part of Infosys' business over the coming years. AI services already contributed more than 8% of the company's revenue in the previous quarter, with the CEO expecting AI-related work to reach 20-30% within the next few quarters and potentially account for nearly half of the company's work over the next two to three years.
What's Driving The Rally In Infosys Shares?
Infosys' latest gains come amid improving sentiment across the IT pack and growing investor focus on the company's AI business.
The stock has risen for five consecutive sessions, including a more than 4% jump on Tuesday and another 2% gain in Wednesday's trade. The broader IT sector has also staged a sharp rebound, with Infosys, TCS and HCLTech among the large-cap technology stocks witnessing strong buying over the past two sessions.
For Infosys, Parekh's comments have brought the company's AI strategy back into focus. AI services contributed more than 8% of revenue in the previous quarter and have been growing at a double-digit sequential pace.
Parekh expects AI-related work to account for around 20-30% of the company's overall work within the next few quarters before potentially increasing to nearly 50% over the next two to three years.
Infosys Steps Up AI Push As Hiring Continues
The growing role of artificial intelligence is also changing the type of work Infosys carries out for clients, but the company continues to add employees.
Infosys plans to hire another 20,000 graduates during the current financial year, even as AI adoption accelerates across its operations and client projects.
Parekh indicated that artificial intelligence is changing the nature of technology work rather than eliminating the need for employees, with hiring and training continuing alongside the company's AI expansion.
At ₹1,087 at 12:18 pm, Infosys shares were up 2.34% for the session, taking their five-day gain to around 8% and extending the stock's recent recovery.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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