Tata Consultancy Services (TCS), India’s largest IT services firm, witnessed a notable rally in its stock price as investors cheered its ambitious plans to establish global leadership in artificial intelligence. On December 18, 2025, TCS shares climbed nearly 2% to ₹3,280.80, reflecting growing optimism around its AI-driven growth strategy.
TCS’s AI Roadmap
TCS has placed artificial intelligence at the core of its future expansion. The company disclosed that AI-related services are generating approximately $1.5 billion in annualized revenue, accounting for nearly 5% of its overall business. This is significantly ahead of peers, where advanced AI revenues average closer to 3%.
The company has already executed over 5,000 AI engagements, spanning enterprise automation, digital transformation, and client-specific solutions. Its five-pillar strategy focuses on:
- Internal AI adoption across operations
- AI-led services for clients
- Talent development in next-generation technologies
- Real-world use cases to drive measurable outcomes
- Ecosystem partnerships for innovation and scalability
Stock Performance
- Price Movement: TCS shares rose 63 points or 1.95% to ₹3,280.80 on the NSE.
- Investor Sentiment: The rally was driven by confidence in TCS’s ability to capture global AI leadership.
- Sector Impact: The IT sector benefited broadly, with TCS leading gains among large-cap technology stocks.
Target Price Outlook
Brokerages remain bullish on TCS, citing its strong AI momentum and diversified client base.
- Analysts project a target price range of ₹4,400–₹4,500, implying an upside of nearly 37% from current levels.
- Quarterly AI revenue growth stands at 16.3%, while annual growth is at 38.2%, underscoring scalability.
- Long-term prospects are supported by consistent investments in AI infrastructure, mergers and acquisitions, and ecosystem expansion.
Strategic Significance
TCS’s pivot to AI is expected to redefine its role in the global IT landscape. By focusing on innovation, talent, and partnerships, the company aims to strengthen its competitive edge and deliver sustainable growth. Analysts believe this transformation could position TCS as a frontrunner in next-generation technology services worldwide.
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