Netweb Technologies India Ltd. is among the best-placed companies to benefit from India's artificial intelligence infrastructure buildout, according to Bank of America, which initiated coverage on the multibagger stock with a 'Buy' rating and a target price of Rs 5,000. BofA's target price implies an upside of around 14% from the stock's last closing price of Rs 4,417.
The brokerage said Netweb stands out as India's leading AI compute original equipment manufacturer (OEM), backed by an asset-light business model, a long-standing partnership with Nvidia and strong visibility on future growth.
The brokerage expects India's AI infrastructure market to expand rapidly over the coming years, forecasting a 30-40% compound annual growth rate (CAGR) as demand for computing capacity accelerates across enterprises, government projects and cloud providers.
According to BofA, Netweb has built a strong competitive moat over the past 15 years through its partnership with Nvidia, making it the only Indian OEM to have deployed AI supercomputing systems used in some of the country's fastest supercomputers.
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The brokerage also highlighted Netweb's proprietary software stack, which helps improve profitability, particularly among lower-volume resellers. In addition, long-standing relationships with key customers account for nearly 40% of revenue, providing recurring business and greater earnings visibility.
BofA believes the company's asset-light model is another competitive advantage. Unlike developers that invest heavily in AI infrastructure, Netweb focuses on designing and deploying compute solutions while customers fund most of the underlying capital expenditure.
The brokerage estimates India's server market will expand to nearly $45 billion (Rs 4.3 lakh crore) by 2030 from about $3 billion (Rs 287.7 crore) in 2023. Within this, it sees the addressable market for specialist OEMs such as Netweb growing to around $9 billion by the end of the decade.
BofA forecasts Netweb's revenue and earnings per share (EPS) to grow at about 40% annually between FY26 and FY29, supported by a strong order book, rising demand for sovereign AI infrastructure, private cloud deployments, high-performance computing, enterprise AI adoption and government-led initiatives. It has also flagged volatility in AI-related investment sentiment and sustained increases in memory prices as key risks to margins.
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