Is AI boom really behind the sudden drop in global tech stocks?
India Today
As high-priced software firms face tighter competition and slowing growth, is the recent plunge in global tech stocks truly an AI shock or just a correction catching up with fundamentals?
Shares of some of the world’s biggest software companies have been hammered in recent weeks. Salesforce, ServiceNow, SAP and others have all seen steep declines after their latest results. A few of them even beat earnings expectations, yet their stocks still fell sharply.
This has sparked a debate about whether rapid advances in artificial intelligence are eating into the core business of traditional software firms or whether the market is simply revaluing companies that had been priced for perfection.
A viral post on X recently claimed that AI is making major software companies obsolete.
It argued that if AI can write code, automate workflows and generate apps cheaply, the subscription-based software model will collapse. But a closer look at earnings, financial data and analyst commentary shows that the situation is much more nuanced.
Several major software firms have reported strong numbers on paper. ServiceNow beat expectations but still fell as investors questioned whether growth can accelerate. SAP dropped after its cloud backlog grew more slowly than anticipated.
Salesforce declined on concerns about future revenue momentum. Reuters and other market trackers point out that slowing cloud spending and uncertainty about long term profitability are weighing on sentiment.
Venkataraman joined Flipkart in 2015 and has been part of the company's leadership team through a period of growth and restructuring. During his tenure, he helped strengthen the company's financial operations.
The gold rate today is around Rs 1.5 lakh per 10 grams for 24-carat gold, while 22-carat gold is near Rs 1.4 lakh, with prices edging higher after recent losses. Silver is also seeing a slight uptick after a volatile phase.
Early indicators suggest a positive start. GIFT Nifty futures were trading at 23,250.5 at around 08:24 am, indicating that the Nifty 50 may open above Thursday's close of 23,002.15.
With multiple energy hubs under threat, the risk to global supply chains has increased sharply. For countries like India, which depend heavily on imports, this means higher costs and tighter supply in the near term.
In a statement, the central bank said it has taken note of the recent developments at HDFC Bank and has approved the transition arrangement proposed by the bank for the position of part-time chairman.
Global brokerage JPMorgan has maintained a "neutral" rating on the stock with a price target of Rs 1,090. HDFC Bank stock is already trading near its 52-week low, adding to weak sentiment around the counter.
The IPO is expected to be structured as an "offer for sale" (OFS). This means existing investors will sell a part of their stake to the public, rather than the company issuing new shares.
Sensex ends 633 points higher, Nifty above 23,700; Infosys up 3%
The Sensex was up 825.79 points, or 1.09%, at 76,896.63, while the Nifty 50 gained 239.10 points, or 1.01%, to trade at 23,820.25 as of 11:44 AM. It may be noted that the Sensex has gained over 2,000 points this week after a sharp losing spree.
The reconstituted panel includes several key institutional representatives. These include members from the Life Insurance Council and the General Insurance Council, along with heads of important professional bodies.