- Nvidia and Microsoft's deal boosted Indian IT sector, lifting TCS shares to two-year high
- TCS shares rose 7% to Rs 2,457.40, marking biggest one-day gain since July 2024
- Nvidia CEO Huang said AI will drive innovation and increase software company hiring
Nvidia and Microsoft's blockbuster 'spark' deal has spelled big gains for the Indian IT sector as well. The global tech rally has rippled through to Indian software giant, Tata Consultancy Ltd., lifting it to a two-year high.
TCS's share price soared 7% to Rs 2,457.40 apiece on Tuesday, clocking the sharpest single-day gain since July 2024. The stock settled near the day's high at the 2,446.90 level, up 6.51%.
The rally in software companies comes on the back of a drastic shift in sentiment surrounding them, prompted by Nvidia's CEO Jensen Huang's address at the GTC Taipei 2026 event on Monday.
Huang dispelled fears that global tech and software companies will be made obsolete by AI, even stressing that the onset of AI would require these software companies to level up on hiring.
ALSO READ: Nvidia-Microsoft 'Spark' Deal Sends Intel, AMD Stocks Tumbling While Dell, HP Gain — Here's Why
The CEO called it "an incredible time to be a software company," adding AI will actually drive more innovation and make adaptable tools even more important.
Earlier viewed as a death sentence for software companies, the AI boom is now being perceived as an aid to them, thanks to Huang.
TCS Q4FY26 Recap
Tata Consultancy Services reported a 29% sequential jump in its net profit after registering a consolidated bottom-line of Rs 13,720 crore for quarter ended March 31, 2026. In the previous quarter its net profit stood at Rs 10,657 crore.
ALSO READ: TCS Q4 Results: Profit Soars 29%; Revenue Beats Estimates
Revenue rose 5.5% to Rs 70,698 crore in the fourth quarter from Rs 67,087 crore; while earnings before interest and taxes rose 6% to Rs 17,870 crore, up 6% from Rs 16,889 crore in Q3, FY26. EBIT margin stood at 25.3%, compared to 25.2% in the third quarter.
Good Time To Buy?
Out of the 50 analysts tracking the IT behemoth on Bloomberg, 35 are bullish and maintain a 'buy' call on its stock, ten recommend holding the shares, while five suggest selling it. The average 12-month consensus price target of Rs 2,922 implies an upside of 19.4%.
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