Infosys, TCS Crash to Fresh 52-Week Lows as OpenAI AI Deployment Push Sparks Panic in IT Stocks

12 May 2026 , 07:15 PM

Infosys 52-Week Low: ₹1,123.00, 52-Week High: ₹1,279.40 

TCS 52-Week Low: ₹2,283.00, 52-Week High: ₹3,630.50 

Shares of Infosys and Tata Consultancy Services came under heavy selling pressure after concerns emerged over the growing disruption risk from artificial intelligence-led enterprise solutions. 

The sharp decline in IT stocks followed OpenAI’s announcement of launching the OpenAI Deployment Company, a new AI-focused venture backed by more than $4 billion in funding. The company aims to help enterprises directly build, deploy, and manage AI systems for everyday business operations, potentially reducing dependence on traditional IT outsourcing firms. 

The announcement triggered fears that AI companies may increasingly bypass conventional IT service providers by offering end-to-end automation, workflow redesign, and AI deployment services directly to enterprises. Investors believe this could impact the traditional labour-intensive business model followed by major IT companies such as TCS, Infosys, Wipro, and HCL Technologies. 

Following the development, today the Nifty IT Index plunged nearly 3.7%, with all major IT stocks trading in the red. Shares of Infosys and TCS hit fresh 52-week lows amid broad-based weakness across the technology sector. 

Apart from AI disruption concerns, the sector also remained under pressure due to: 

• Slowing global technology spending  

• Weak discretionary spending by clients  

• Delayed decision-making in large transformation deals  

• Concerns over revenue growth moderation  

• Expensive valuations despite slowing growth outlook  

• Global tech sell-off amid geopolitical and macroeconomic uncertainty  

Infosys shares slipped to their lowest level since December 2020, while TCS touched levels last seen in August 2020, reflecting weak investor sentiment toward the IT sector. 

Analysts also highlighted that AI is gradually shifting from being just a productivity tool to becoming the actual execution layer itself, raising concerns over future pricing power and revenue growth for traditional IT service providers. 

Stock Performance Context

Shares of Tata Consultancy Services and Infosys have remained under significant pressure over the past few months, underperforming the broader market amid concerns over slowing global IT spending and rising AI-led disruption risks. 

TCS Stock Performance

• TCS shares have declined 5.10% in the past week and 8.75% over the last one month, compared to the Nifty 50’s decline of 2.72% and 2.79%, respectively. 

• On a year-to-date (YTD) basis, the stock is down 28.63%, significantly underperforming the benchmark index. 

• Over the past one year, TCS shares have fallen 36.37%, while the Nifty 50 declined around 6.2%. 

• The stock has also delivered negative returns of 29.65% over three years and 25.40% over five years, reflecting prolonged weakness in investor sentiment. 

• TCS touched its fresh 52-week low of ₹2,283 on May 12, 2026, while the stock’s 52-week high stood at ₹3,630.50. 

• Trading activity remained elevated with volumes of around 63.48 lakh shares and traded value exceeding ₹1,461 crore.
  

Infosys Stock Performance

• Infosys shares declined 3.26% in the past week and 11.82% over the last one month, reflecting continued weakness in the IT sector. 

• The stock has fallen nearly 30.07% on a YTD basis and is down 29.95% over the past one year, sharply underperforming the broader market. 

• Over the longer term, Infosys has generated negative returns of 8.47% in three years and 14.11% over five years. 

• Infosys touched a fresh 52-week low of ₹1,123 on May 12, 2026, compared to its 52-week high of ₹1,728. 

• The stock also witnessed strong trading activity with volumes of around 168.92 lakh shares and traded value of nearly ₹1,921 crore, indicating heavy investor selling pressure.

TCS Infosys Technical Chart