The share price of Infosys is under pressure after the smart rally recent. The tech major revealed its AI game plan at the Investor AI Day 2026 on February 17. The event was closely tracked by the Street as management laid out its roadmap for Artificial Intelligence led growth. The big highlight was Nandan Nilekani predicting 170 million job creation potential compared to 92 million legacy job displacement.
Following this, brokerage houses such as Motilal Oswal and Nuvama Institutional Equities have reiterated their positive stance on the stock after the event, outlining what they see as structural opportunities ahead.
Let’s take a look at what the brokerages are saying, why they remain optimistic, and what risks they flag.
Motilal Oswal on Infosys: ‘Buy’
The domestic brokerage house Motilal Oswal has maintained a ‘Buy’ rating on Infosys with a target price of Rs 1,850. According to the brokerage report, this valuation is based on 22 times FY28 estimated Earnings Per Share (EPS), implying a potential upside of about 33%.
As per the brokerage report, Infosys presented Artificial Intelligence as more than just another innovation cycle. The company described it as a deep structural change, similar to earlier transitions such as mainframe to personal computer, personal computer to cloud and cloud to mobile but more complex in execution.
According to the brokerage report, “AI transition is fundamentally different from prior technology cycles.” The firm believes that unlike earlier shifts that involved adding new technology layers, Artificial Intelligence requires enterprises to rethink operating models, workforce structures and overall technology architecture.
Motilal Oswal also highlighted the challenge posed by legacy systems. As per the brokerage report, “One key constraint is the brownfield nature of enterprise environments.” Most large enterprises operate on layered systems built over decades. This makes large scale Artificial Intelligence deployment difficult.
The brokerage further added, “With approx. 60-80% of IT budgets still allocated to maintenance, legacy modernisation is increasingly becoming a prerequisite for scaling AI initiatives.”
In simple terms, companies must first fix and upgrade old systems before Artificial Intelligence can deliver full value. This creates a services opportunity for companies like Infosys.
On earnings visibility, the brokerage remains relatively comfortable. According to the brokerage report, “We see limited evidence for earnings cuts and believe cyclical recovery in core businesses is underway.” However, it cautions that concerns around long term valuation and Artificial Intelligence led disruption could limit sharp re-rating in the near term.
Motilal Oswal also noted Infosys’ growing ecosystem of partnerships such as Infosys-Cognition, Infosys-Cursor and Infosys-Anthropic. As per the brokerage report, these collaborations could strengthen solution breadth and help scale enterprise Artificial Intelligence adoption more effectively.
Nuvama on Infosys: ‘Buy’
Another brokerage house, Nuvama Institutional Equities has also reiterated a ‘Buy’ rating on Infosys, with a higher target price of Rs 1,900. This suggests a potential upside of nearly 36% from Rs 1,391.
According to the brokerage report, Artificial Intelligence is not just a continuation of earlier digital shifts. It represents a deeper structural transformation. Earlier changes like personal computer to mobile or on-premise systems to cloud largely involved migrating or adding layers of technology. Artificial Intelligence, however, requires redesigning workflows, reskilling talent and restructuring enterprise processes.
Nuvama believes enterprise technology stacks remain highly complex, with heavy technical debt due to layered legacy systems.
As per the brokerage report, Artificial Intelligence led tools are now making large scale legacy transformation more feasible and cost effective. This, in turn, could create sustained demand for information technology services.
However, Nuvama also flags near-term challenges. According to the brokerage report, productivity gains from Generative Artificial Intelligence (Gen AI) could lead to revenue compression in the short term, especially as automation improves efficiency. The benefits, the brokerage believes, will likely accrue over the medium to long term as Artificial Intelligence adoption scales.
The report also commented on employment shifts. “Gen AI will displace approx. 92 milliom jobs such as front-end developers and testers, but will create approx 170 million new jobs such as data annotator, AI engineers and AI leads.” That translates to roughly 9.2 crore jobs displaced and 17 crore new roles created globally.
Conclusion
Overall, both the brokerage houses agree that execution will determine outcomes. According to the brokerage reports, success in the Artificial Intelligence cycle will depend on data readiness, modernisation capability, talent transformation and governance structures.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.