Perspective on the IT Sector from Vinit Bolinjkar - Head of Research - Ventura
Below the Perspective on the IT Sector from Vinit Bolinjkar - Head of Research - Ventura
‘The IT sector is entering a phase of recalibration rather than retreat. The global technology spending base remains intact, but the mix has shifted toward AI infrastructure, and the cycle is moving from expansion at any cost to digestion and proof. Three forces are converging: safety-led pacing discussions among frontier AI developers, sharper scrutiny of capital expenditure returns, and valuations that already discount an optimistic adoption curve. For IT stocks, this should begin closing the era of undifferentiated sectoral rallies. The correction in the AI supply chain and the simultaneous relief rally in Indian IT are early expressions of the same repricing, as the market starts separating beneficiaries from the disrupted. Firms converting AI into billed enterprise outcomes through deep workflow integration should command a premium, while those anchored to commoditized legacy delivery will see pricing deflation compress margins.
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