“Why Does CLSA Stay Positive on Indian IT After Nvidia’s Strong Numbers?”

How Did CLSA View Nvidia’s Strong Numbers and Indian IT Sector?

Nvidia’s Strong Performance

CLSA highlighted that Nvidia reported a strong quarter with overall revenues beating guidance. The company’s Q3 guidance indicates continued strong momentum with an impressive 54% year-on-year growth.

Indian IT Sector Outlook

CLSA remains positive on Indian IT owing to stronger US economic growth prospects in 2026, aided by the mid-term elections. While tariffs may have a temporary negative impact, potential interest rate cuts are expected to revive discretionary spending. Attractive valuations are also seen as providing downside protection.

Key Collaborations with Nvidia

Leading IT majors like TCS, Infosys, Wipro, and Tech Mahindra are building high-value capabilities around the Nvidia ecosystem. In the past three months, TCS and Nvidia have partnered to design AI-native solutions for the telecom sector. This will provide TCS’s telecom clients access to agentic AI and digital twin technologies to enhance operations and business processes.

Preferred Picks

Among the Indian IT companies, Infosys and Wipro remain CLSA’s preferred picks in the sector.

Tags: CLSA, Nvidia, Indian IT sector, TCS, Infosys, Wipro, Tech Mahindra, AI, Telecom, Discretionary Spending, Interest Rates

SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.

Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services