Infosys Eyes $400 Billion AI Opportunity by 2030 — Here's What Brokerages Think

Infosys' AI Investor Day reinforced confidence in the company's positioning for the next wave of technology transformation, with multiple brokerages maintaining bullish ratings and highlighting a significant long-term opportunity despite near-term execution risks.

Analysts broadly agreed that enterprise AI adoption is accelerating, with Infosys already deriving about 5.5% of its revenue — around Rs 2,500 crore — from AI-led services. This is broadly in line with peers such as TCS and HCLTech, signalling that AI is beginning to meaningfully contribute to revenue streams across the IT services sector.

Adoption Curve Still Evolving

Brokerages including BofA, UBS, and Jefferies highlighted that enterprise AI represents a substantial growth lever, with Infosys estimating a $300-400 billion addressable market by 2030. UBS expects this opportunity to outweigh productivity-led revenue compression risks, while Jefferies noted that AI services adoption is already deepening, with nearly 90% of Infosys' top clients leveraging its AI capabilities.

Nuvama and Motilal Oswal emphasised that legacy modernisation — upgrading existing enterprise systems using AI — could emerge as a key demand driver, positioning Infosys as a major beneficiary of the shift.

Key Watchpoints

While the opportunity is significant, brokerages cautioned that enterprise AI implementation remains complex and far from plug-and-play. Morgan Stanley and BofA flagged execution and monetisation clarity as key risks, noting that billing models are still evolving from effort-based to outcome-based frameworks.

However, Infosys' investments in AI platforms, partnerships-including collaborations with firms such as Anthropic-and talent expansion were seen as critical enablers. The company plans to hire 20,000 graduates in FY27 to strengthen AI capabilities.

Here are what brokerages are saying on the Infosys AI Investor Day:

BofA on Infosys

• BofA maintains a Buy rating with a target price of Rs 1,840.

• The brokerage highlights several positives in Infosys' positioning in the AI landscape.
• Enterprise AI adoption remains complex and is not plug-and-play.
• AI-first offerings currently contribute around 5.5% of revenue, broadly in line with peers.
• The key risk lies more in strategy and execution rather than the opportunity size.
• Infosys' partnership with Anthropic underscores the role of IT services firms in enterprise AI transformation.

UBS on Infosys

• UBS maintains a Buy rating with a target price of Rs 1,870.
• The brokerage believes AI-driven opportunities will outweigh productivity-led revenue compression.
• AI presents a US$300–400 billion opportunity for IT services firms.
• However, enterprise readiness remains a constraint in the near term.
• IT vendors must build capabilities through talent investments, platforms, partnerships, and acquisitions.
• UBS will closely monitor Infosys' progress in building AI capabilities.

Morgan Stanley on Infosys

• Morgan Stanley maintains an Equal-weight rating with a target price of Rs 1,760.
• The brokerage dismisses concerns around opportunity risk but acknowledges execution risks.
• Infosys has demonstrated readiness and capability through client case studies.
• AI services currently contribute about 5.5% of revenue.
• Limited clarity exists on the net size of the AI opportunity.
• The delivery model is expected to evolve from human-only to human-plus-agent execution.
• Billing models remain in early stages of transitioning toward outcome-based pricing.

Nuvama on Infosys

• Nuvama maintains a Buy rating with a target price of Rs 1,900.
• Legacy modernisation remains a large opportunity driven by AI adoption.
• Infosys is positioned at the forefront of new technology deployment.
• The technology gap across enterprises creates meaningful services opportunities.
• The recent IT stock correction is viewed as overdone.
• While near-term headwinds remain, Gen AI is expected to create significant long-term growth opportunities.

Jefferies on Infosys

• Jefferies maintains a Buy rating with a target price of Rs 1,880.
• Infosys highlighted that IT services firms will remain central to enterprise AI implementation.
• Its proprietary AI platform, Infosys Topaz Fabric, is being deployed alongside ecosystem partners.
• The company has implemented a two-pronged talent strategy to capture new AI demand and enhance existing services.
• AI services contributed around 5.5% of revenues in Q3FY26.
• Around 90% of Infosys' top 200 clients are already using its AI services.

Motilal Oswal on Infosys

• Motilal Oswal maintains a Buy rating with a target price of Rs 1,850.
• The brokerage believes AI adoption at scale in enterprises will take time.
• Infosys continues to expand partnerships with AI-native firms.
• There is limited evidence of earnings downgrades.
• Cyclical recovery in core businesses is underway.
• Concerns around terminal value and AI disruption could limit near-term valuation expansion.

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