IT Stocks In Focus Amid Infosys Buyback, Nvidia Earnings - Know What Investors Should Do

Information technology (IT) stocks were in focus on November 20 amid Infosys’ share buyback and the global chip giant Nvidia earnings report. Shares of large-cap IT stocks such as Tata Consultancy Services (TCS), Tech Mahindra, and Wipro rose up to 2 per cent during the session, while mid-cap IT stocks like Persistent Systems, LTIMindtree, Mphasis and Oracle Financial Services Software also traded in the green, up around 2-3 per cent each.

The Nifty IT index, which tracks the 10 most valuable and liquid stocks in the sector, also gained up to 0.63 per cent, extending gains from the previous session, during which the index gained nearly 3 per cent.   

Infosys Share Buyback 2025: Key Details As Offer Opens Today

Infosys’ Rs 18,000-crore share buyback opened on November 20, offering investors roughly a 17 per cent premium to the current market price. The tender window will remain open until November 26. Shareholders had cleared the proposal on November 6, while the board had approved the plan on September 11.

Under the buyback, Infosys will repurchase up to 100 million equity shares, amounting to 2.41 per cent of its paid-up equity capital. The record date for determining eligible shareholders was set as November 14. About 15 per cent of the offer has been reserved for small investors.

The buyback is being carried out through the tender offer route on both the NSE and BSE. In this method, shareholders can offer their shares at the fixed buyback price, and if the response exceeds the intended quantity, shares are accepted on a proportionate basis.

Earlier, Infosys had also confirmed that its promoters, including Nandan Nilekani, Narayana Murthy and Sudha Murthy, will not participate in the buyback. As of September 30, 2025, promoters held a 14.30 per cent stake in the company. Their decision to stay out of the offer is generally seen as a sign of confidence in the firm’s long-term outlook.

Nvidia Q3FY26 Earnings Report

Nvidia posted strong results for the third quarter of fiscal year 2026 (Q3FY26), reporting revenue of $57.0 billion, up 22 per cent from the previous quarter and 62 per cent from the same period last year.

Its data-centre business continued to drive performance, generating $51.2 billion in revenue, a jump of 25 per cent quarter-on-quarter (QoQ) and 66 per cent year-on-year (YoY). The chipmaker’s gross margin improved 100 basis points (bps) to 73.4 per cent.

For the fourth quarter, the chipmaker has projected revenue of about $65 billion, plus or minus 2 per cent, and gross margin to improve by another 140 bps.  

With the upbeat guidance, CEO Jensen Huang said concerns about an artificial intelligence (AI) bubble are overstated. Speaking on the post-earnings call, Huang said, “There has been a lot of talk about an AI bubble. From our vantage point, we see something very different. As a reminder, Nvidia is unlike any other accelerator. We excel at every phase of AI from pre-training to post-training to inference.”

He added, "We have entered the virtuous cycle of AI. The AI ecosystem is scaling rapidly with the emergence of new foundation model makers and AI startups across multiple industries and in numerous countries. AI is going everywhere, doing everything, all at once.”

Ross Maxwell, Global Strategy Lead at VT Markets, said Nvidia’s “double beat” on revenue and earnings, coupled with the upgraded guidance, offered “timely relief” to markets worried about overheated valuations in the AI space. He said that Nvidia remains a bellwether for the broader AI ecosystem, and the strong outlook “helps reduce uncertainty in the sector,” though he cautioned that sentiment could reverse if future growth slows or if smaller players fail to keep pace.

“The caveats to the positive report will be that if future quarters don’t continue to accelerate, sentiment can reverse quickly. Also, while Nvidia’s success is encouraging, it doesn’t guarantee that all companies in the AI space will be able to replicate, especially those companies with weaker competitive position,” Maxwell added.

What Should Investors Do

Back home, analysts expect the global AI wave to support domestic IT companies. Santosh Meena, Head of Research at Swastika Investmart, said Indian IT firms are positioned to benefit as AI adoption expands. “More than 2.5 lakh Indian developers are trained on Nvidia’s CUDA platform,” he said, adding that partnerships such as Tata–Nvidia and Reliance’s sovereign AI plans “are creating a strong AI ecosystem in the country.”

Meena added that enterprise spending on GenAI is rising, and surveys show over a third of companies budgeting for AI integration. “A recent survey indicates that 34 per cent of companies have allocated budgets for GenAI integration, showing a clear trend of increasing demand,” he said.

Meena believes the sector’s valuations also offer comfort. “Nifty IT is currently trading around 24.8–24.9 times its earnings, which is below its five-year average,” he said. According to him, while near-term growth appears modest, “FY26 could see improvement, and FY27 may see meaningful AI benefits for the entire sector.” He added that the sector’s solid balance sheets and healthy dividends provide stability in the meantime.