- Infosys and Wipro ADRs fell up to 4.5% for the second consecutive session on Wednesday
- Accenture shares dropped 5%, with other software firms like Cognizant and Gartner also down
- Brokerages downgraded Accenture citing AI pressure on outsourcing budgets and deal sizes
The American Depository Receipts of Indian IT behemoths Infosys and Wipro extended losses for the second consecutive session on Wednesday, declining up to 4%.
Infosys bore the brunt and traded around a day's low of $12.48, down 4.5%, while Wipro which had slumped as much as 3% in early trade, pared some losses to trade 2% lower at $2.16.
This is the second consecutive day that these software ADRs have bled, taking cues from their NYSE-listed counterparts with the likes of Accenture, which also extended its weakness and dipped 5% to a low of $177.39.
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Other major software companies like Gartner Inc., Cognizant Technology Solutions Corp., and EPAM Systems Inc. followed suit.
Cognizant, Gartner and EPAM Systems fell over 4% to lows of $52.98, $163.05, and $98.20, respectively. Downgrades and target price cuts by brokerages had triggered a global tech selloff on Tuesday, rejuvenating AI as a threat in the software world.
Truist has downgraded Accenture to 'Hold' and slashed the target price to $210 from $269. Similarly, Citi has cut the company's target price to $195 from $215 while maintaining a neutral rating.
Brokerages have cited AI-led pressure on outsourcing budgets and deal sizes for their downgrades. Truist has flagged that AI-native firms are increasing competition for IT services. Concerns have also risen over artificial intelligence headcount-based pricing models.
ALSO READ: Infosys, Wipro ADRs Bleed Up To 8% After US-Listed Software Stocks Plunge On Brokerages' AI Alarm
Post the revisions, shares of Accenture along with other software companies took a U-turn from their Jensen Huang-powered rally to sink up to 7%.
During his ddress at the GTC Taipei 2026 event on Monday, the Nvidia CEO had dispelled caution surrounding the co-existence of these companies with an AI boom.
Huang called it "an incredible time to be a software company," adding AI will actually drive more innovation and make adaptable tools even more important.
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