Infosys Shares Fall 5.3% In Two Days, Losing ₹25,000 Crore In Market Cap Amid Global AI Trade Rebound

Infosys shares remained under pressure on Wednesday, 28 October, as the resurgence of the global artificial intelligence trade intensified selling across Indian IT stocks. The Bengaluru-based company has faced two consecutive sessions of losses, with investors reassessing the outlook for traditional software services businesses amid changing technology spending patterns.

The pressure comes days after Infosys reported its September quarter results and reduced its revenue growth guidance for the financial year. Softer business volumes and competitive pricing have added to concerns over near-term performance.

Infosys Share Price Movement

Infosys shares were trading at ₹1,118.20, down 3.8% during Wednesday's session, as the stock attempted to recover from its intraday lows. Despite the recent weakness, the shares remain higher over the past month.

The broader Nifty IT index also declined, making it the weakest-performing sectoral index during the session. All 10 constituents traded lower as investors booked profits following renewed enthusiasm for AI-related hardware and semiconductor companies in global markets.

SK Hynix Results Revive AI Hardware Trade

The latest selling pressure followed strong quarterly results from South Korean memory chipmaker SK Hynix, which reinforced investor confidence in demand for AI infrastructure.

The company reported record quarterly revenue and operating profit for the September quarter, supported by rising demand for AI infrastructure and higher memory chip prices.

• Operating profit: 83.33 trillion won, up 632.1% year on year.

• Revenue: 104.62 trillion won, an increase of 327.9%.

• Market reaction: Shares surged more than 10%, helping lift South Korea's benchmark KOSPI index.

The results highlighted the strength of spending on AI infrastructure. However, enthusiasm for semiconductor manufacturers has coincided with profit-taking in Indian IT services companies, reflecting differing investor expectations for the two segments.

Infosys Cuts Full-Year Revenue Guidance

Infosys lowered its constant currency (CC) revenue growth forecast for the financial year to 1%-2%, against its earlier projection of 1.5%-3%. This marked the second consecutive quarter in which the company narrowed its outlook.

September quarter CC revenue growth came in at 1.2%, while earnings before interest and tax (EBIT) margin stood at 21%. The company retained its full-year margin guidance of 20%-22%.

Management attributed the weaker outlook to softer volumes and pricing pressures amid intense competition. It also indicated that wage increases could weigh on margins in the second half of financial year 2027, with cost-saving measures under Project Maximus expected to help offset the impact.

AI Opportunities Versus Near-Term Challenges

Chief executive officer Salil Parekh said Infosys remained a preferred AI partner for its leading clients, pointing to its AI revenue contribution, healthy large-deal pipeline and strong free cash flow.

The company believes its client relationships and capabilities position it to navigate the industry's transition. However, subdued revenue momentum, pricing pressure and near-term margin challenges remain important factors as investors weigh the prospects of established IT services providers against the accelerating growth of AI hardware businesses.

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