Infosys shares fall despite management's positive commentary on AI services

Infosys shares declined nearly 3% on Monday, August 31, even as brokerage firm Nomura was positive on the stock post the chief financial officer's (CFO) commentary on AI services.

Nomura has a "buy" rating and a target price of ₹1,290 per share. This indicates an upside of 12.7% from its previous close of ₹1,144 apiece.

The CFO, in an interaction with the brokerage, said that AI services opportunities could reach a size of $300 billion - $400 billion by 2030.

Nomura highlighted in its note, the six value pools that the Infosys CFO re-emphasised regarding AI that the company believes will create meaningful demand in the medium to long-term

• AI strategy and engineering - including agent building, orchestration.


• Data for AI - Enterprise data readiness without sharing data broadly with foundation models.


• Process AI -
  Agent-led process reimagination, customer service cited as a major wedge.


• Legacy modernisation - AI-enabled acceleration.


• Physical AI - AI embedded into devices, edge, autonomous systems


• AI trust - Security, responsible AI and compliance.

Infosys' AI services are on the growth path, having grown from 5.5% as a percentage of overall topline in the third quarter of financial year 2026, to 8.2% in the first quarter of the current financial year.



The Infosys CFO believes that rising tech complexity in enterprises only makes the role of system integrators like itself more relevant given that it has a deep understanding of the clients' processes and context, which is hard to replace, Nomura reported.

Of the 49 analysts who have coverage on the Infosys stock, 29 have a "buy" rating, 16 have a "hold" rating and four have a "sell" rating.

Shares of Infosys are looking to recover from the lows of the day, currently trading 1.5% lower at ₹1,127. The stock is still down 31% so far this year.

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