Infosys Stock Under Pressure Amid Renewed Tech Sell-Off
Shares of Infosys Ltd. declined sharply as global technology stocks faced renewed selling pressure, driven by investor concerns around artificial intelligence disruption and slowing enterprise spending. The weakness in Infosys mirrors a broader risk-off sentiment across IT services stocks, as markets reassess growth assumptions built into sector valuations.
While Infosys remains one of India’s strongest IT exporters, recent market action suggests rising caution over near-term earnings visibility, particularly in core markets such as the United States and Europe.
INFY — Daily Price Chart
Last updated: 13 Feb 2026Infosys Snapshot
- Stock movement: Sharp decline amid IT sector sell-off
- Key concern: AI-led disruption and deal conversion delays
- Revenue exposure: Heavy dependence on U.S. and Europe
- Sector trend: Broad weakness across Indian IT services
- Investor mood: Cautious, valuation-sensitive
Why AI Is Becoming a Double-Edged Sword for Infosys
Artificial intelligence has long been positioned as a growth catalyst for Infosys, with the company investing aggressively in AI platforms, talent upskilling, and automation-led services. However, investors are increasingly questioning whether AI adoption could also compress traditional IT service revenues.
Market participants are concerned that automation and AI-led efficiencies may reduce billing volumes, even as clients demand faster delivery and lower costs.
According to Reuters, global IT clients are scrutinising technology budgets more closely, delaying discretionary spending and renegotiating contracts — a trend that directly impacts large service providers like Infosys.
What This Means for Investors
The recent correction in Infosys shares reflects a shift from growth optimism to earnings discipline. Investors are now focusing more on deal pipeline conversion, margin sustainability, and commentary around AI monetisation rather than long-term digital narratives.
For long-term investors, the decline may improve valuation comfort, but near-term volatility is likely to persist as markets wait for clearer signals on demand recovery.
How Infosys Compares With Its Peers
Infosys is not alone in facing pressure. Peer companies such as TCS, Wipro, and Tech Mahindra have also seen stock declines amid similar concerns. However, Infosys’ higher exposure to digital transformation projects makes it particularly sensitive to changes in client spending priorities.
Compared to peers, Infosys is seen as operationally strong but more exposed to global macro uncertainty due to its revenue mix.
What to Watch Next
Investors will closely track management commentary in upcoming earnings calls, especially on AI deal wins, client budgets, and pricing trends. Any indication of stabilising demand or improved AI-led revenue visibility could help restore confidence.
Until then, Infosys shares are expected to trade in line with global tech sentiment, with macro cues and U.S. market trends playing a decisive role.
