TCS Share Price Falls Nearly 2% After New AI Unit Announcement; Motilal Oswal Maintains 'Buy' on This IT Stock

Tata Consultancy Services (TCS) shares slipped nearly 2% on Thursday following reports that the company has set up a dedicated AI and services transformation unit. The newly formed division, led by Amit Kapur effective September, will consolidate TCS's AI capabilities to drive domain-specific solutions and accelerate innovation across client industries.

IT Stocks in Red: HCL, TCS, Infosys Shares Among Top Losers

Nifty IT Index Today: The move aligns with the broader industry push to leverage AI amid stagnant tech investments. Meanwhile, the Nifty IT index languished as the worst-performing sector on the NSE, with HCLTech and Infosys also falling sharply, dragged down by a weak outlook from U.S. chipmaker Nvidia and deepening global tech sector jitters.

TCS Share Price Today

On August 28 at 10:38 AM IST, Tata Consultancy Services Ltd (TCS) was trading at Rs 3,116.10 on the NSE, marking a decline of Rs 41.10 or 1.30% from the previous close. The stock opened the session at Rs 3,145.00 and briefly climbed to a high of Rs 3,146.50 before dropping to an intraday low of Rs 3,101.20.

Over the past 52 weeks, TCS has traded between a high of Rs 4,592.25 and a low of Rs 2,991.60, showcasing considerable movement in its share price range.

Why TCS Stocks Are in Focus Today?

According to a company memo reviewed by Reuters, the newly formed unit will consolidate TCS's existing AI capabilities into a single division, aimed at developing deeper, domain-specific AI solutions. This initiative is designed to accelerate innovation and provide tailored technology services that address the unique challenges faced by different sectors.

TCS Appointed Amit Kapur As Head of AI and Services Transformation Division

TCS has appointed Amit Kapur to lead its newly established AI and services transformation division. This decision, effective from September, was revealed in a company memo accessed by Reuters. The move aligns with the Indian IT sector's push to integrate more AI solutions to boost tech investments, which have been stagnant for several quarters.

In recent years, TCS has significantly advanced its AI capabilities. The company has focused on upskilling its workforce and strengthening partnerships to enhance its offerings in this domain. This strategic shift is part of a broader effort to remain competitive in the rapidly evolving tech landscape.

Should You Buy TCS Stock Today? Check Motilal Oswal's Recommendation with Target Price

Top brokerage firm Motilal Oswal has given a "Buy" recommendation on Tata Consultancy Services Ltd (TCS) with a target price (TP) of Rs 3,850. The brokerage suggests entering the stock at a recommended buy level of Rs 3,022. At the current market price (CMP) of around Rs 3,116, this implies a potential upside of approximately 27%.

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