The American Depository Receipts of Infosys and Wipro plunged up to around 8% on Tuesday, after the Wall Street-listed software stocks fell sharply prompted by downgrades and target price cuts from brokerages.
Wipro ADR slumped nearly 9% to a low of $2.16, while Infosys declined as much as 4% to $12.86. As of 12:22 p.m. EST, Wipro traded over 8% lower at $2.21, while Infosys was down 2.4% at $13.09.
Accenture’s shares plunged 7% to as low as $183.41 after closing at $196.59 levels. As of 1 p.m. EST, the scrip traded 6.25% lower at $184.45. Other major software companies like Gartner Inc., Cognizant Technology Solutions Corp., and EPAM Systems Inc. followed suit.
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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.
Cognizant and EPAM Systems fell over 6% to a low of $53.42 and $101.14, respectively. Brokerages’ alarms have disrupted a Jensen-Huang powered rally in software stocks and brought back AI-related fears.
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.
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In fact, he had emphasised that onset of AI would require these software companies to level up on hiring, instead of wiping out their existence.
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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