Anthropic IPO Pressures TCS, Infosys as AI Trade Returns

Indian IT stocks turn lower

Indian IT stocks fell on Tuesday as interest returned to global AI-linked investments. Infosys, TCS, Wipro and other major technology services companies traded lower. The move followed reports of Anthropic preparing for a US public listing. Meta's announcement of plans to seek $95 billion through equity offerings added to AI investment concerns. Investors reassessed whether a recent shift away from AI stocks could last. Business Today described the reaction as a setback for the reverse AI trade. That trade had supported Indian IT stocks earlier in October. Tuesday's price action instead favoured companies linked to AI infrastructure.

Infosys and TCS lead the decline

Infosys was among the weakest stocks in the NSE IT index. It fell 2.31% to Rs 1,139.05, according to the reported market data. TCS declined 2.09% to Rs 2,481.90. At an earlier point in trading, Infosys was down 1.26% at Rs 1,151.35. TCS was then lower by 1.70%. Coforge and Persistent Systems also lost 1.68% and 1.16%, respectively. Reports said all 10 stocks in the NSE IT index traded lower. The sector's fall was reported at roughly 1.5% in one market update.

A renewed focus on the AI trade

Anthropic is the developer of the Claude AI models. Reports said the company had begun preparing for a Nasdaq IPO. Other reports said it filed for an IPO under the ticker ANT. The number of shares proposed for sale had not been determined. Media reports also cited a potential valuation of around $1.5 trillion. Those valuation figures and any listing timeline remain subject to media speculation. The prospect of a listing renewed attention on AI developers and their infrastructure needs. It also shifted focus back to the amount of capital being directed to AI.

Chip stocks rally as services stocks weaken

The AI theme received a fresh boost after the Anthropic IPO development. Nandish Shah of HDFC Securities noted a sharp rally in semiconductor stocks. The iShares Semiconductor ETF rose nearly 3%, according to Shah. Nvidia gained 2.4% and Micron rose 3%. Broadcom advanced 2.3%, while AMD gained 2.8%. Reports also pointed to gains of about 4% or more in Samsung and SK Hynix. These moves reinforced the preference for AI chips and infrastructure. Indian IT services stocks moved in the opposite direction during the session.

Key market and company figures

The latest sell-off came despite visible AI revenue contributions at Infosys and TCS. Infosys said AI revenue represented 10.5% of revenue in its October 23 update. The company said this revenue grew 29% quarter on quarter. TCS said annualised AI revenue reached $3.1 billion in its October 8 release. That figure crossed 10% of TCS revenue, according to the reported data. Both companies are therefore reporting material AI-linked business. Yet investors remain focused on broader demand and pricing implications. The available figures highlight the contrast between AI adoption and overall growth concerns.

Infosys guidance adds to investor caution

Infosys reported second-quarter revenue of $5,145 million on October 23. It reported 1.5% year-on-year growth in constant currency. The company cut FY27 revenue growth guidance to 1%-2%. Its previous guidance range was 1.5%-3.0%, given on July 23. Infosys retained its operating margin guidance at 20%-22%. The guidance revision came even as its AI revenue share increased. At least four analysts reportedly downgraded Infosys in a single day. The downgrades deepened concerns about AI disruption and slower sales growth.

TCS results show modest revenue growth

TCS reported second-quarter revenue of $7,642 million on October 8. Its revenue was up 2.4% year on year in US dollar terms. The company also highlighted annualised AI revenue of $3.1 billion. That disclosure placed AI at more than a tenth of reported revenue. TCS has recently participated in the broader October IT-sector rally. However, the rally did not rest on broad earnings estimate upgrades. Jefferies said the move was largely driven by price-to-earnings multiple expansion. This left the sector sensitive to renewed concerns around AI spending.

Why investors see pressure on traditional services

Indian IT stocks have faced pressure amid heavy global AI investment. Client budgets are being directed towards AI infrastructure and computing capacity. Spending is also moving towards AI-enabled software and cybersecurity. Data readiness and modernisation remain other areas of investment. Traditional maintenance and support services face pricing pressure in this environment. Clients are seeking efficiency gains from AI tools and systems. Some investors expected AI spending to slow and benefit regular IT services. Tuesday's moves suggested that expectation may have been premature.

What the market will watch next

The immediate market reaction does not change reported AI revenue at Infosys or TCS. It does show how closely Indian IT valuations remain tied to global AI developments. Investors will watch whether enterprise technology budgets favour infrastructure over services. Infosys' reduced revenue outlook remains an important company-specific signal. TCS' reported AI revenue will also be closely tracked against overall growth. Anthropic's reported IPO plans have brought infrastructure costs and losses into discussion. Reports said Anthropic generated $16.3 billion in first-half 2026 revenue and recorded an $80.7 billion net loss. For Indian IT, the key issue is whether AI spending expands service opportunities or sustains pressure on legacy work.