TCS AI grows 15-20% quarterly, Nomura retains Buy, sets ₹2,630
Tata Consultancy Services (TCS) has seen its AI revenue grow at a 15% to 20% compound quarterly growth rate over the past four quarters, according to a new report from Nomura.
Nomura has kept its "Buy" rating on TCS and set a target price of ₹2,630 per share, betting on strong future earnings.
TCS AI generates $3.1B annually
AI already brings in $3.1 billion for TCS each year, about 10% of its total revenue.
The company is investing $1 billion annually into training and infrastructure to stay ahead, with a focus on things like updating old banking systems and building specialized language models.
While there are some hurdles around data and tech integration (especially in health care), TCS is optimistic that demand for its AI services will keep growing as more industries catch up.