Infosys-Anthropic Collaboration Indicates AI Growth Opportunities, Not Market Disruption: Sumit Pokharna

The recent partnership between Infosys and US-based AI startup Anthropic has created buzz on the streets, but industry experts are urging investors to separate hype from long-term fundamentals.Speaking to ET Now, Sumit Pokharna of Kotak Securities described the partnership as “a step in the right direction” and “the need of the hour.” He explained: “The goal of this partnership is to help companies in complex and regulated industries use AI safely. Industries such as telecommunications, banking, insurance, manufacturing and software development cannot freely experiment with AI. They need governance, transparency, compliance, reliability and security.”

On whether larger IT companies would have an advantage over midcaps in AI collaborations, Pokharna said: “Large companies will have the upper hand because of the bandwidth they have, but we cannot ignore midcap companies that specialize in niche areas, such as Coforge or Hexaware Technologies. They have unique skills, strong focus and deep customer relationships. They will also benefit – it’s not just that larger companies will take the whole pie.”

Regarding the potential revenue impact and AI-driven growth, Pokharna noted: “What we have indicated so far, we think we have already signed some of it, and we expect 2% to 3% lower growth over the next three years due to GenAI. The AI ​​risk is not being ignored. The worst impact is expected in 2027, which could be the year when investor pessimism about IT stocks will be highest.”

On the market’s reaction to AI and valuations, he added: “Markets are currently overvaluing disruption. AI improvements are meaningful but incremental. Current stock prices already reflect low long-term growth. Some quality challengers may benefit from AI rather than suffer from it. We believe the market is pricing AI disruption more aggressively over the long term than the evidence warrants, and that overreaction could create investment opportunities for savvy investors who can buy value or quality stocks at reasonable prices. ratings.”

On whether valuations could fall further, Pokharna warned: “The narrative that AI will disrupt and shorten working hours and billing rates has created pessimism. IT sector stocks have corrected significantly. It’s a falling sword – we can’t rule it out. But this is an overreaction as full evidence is not yet available. Whenever such negative expectations pile up, it often presents an opportunity for smart investors.”

As AI partnerships gain momentum, industry observers say investors should focus on fundamentals and sector specialization rather than short-term market noise. The partnership between Infosys and Anthropic may mark just the beginning of a wave of AI-driven alliances in the Indian IT sector.