Infosys Ltd is likely to attract investor attention after global brokerage CLSA reaffirmed its 'outperform' rating on the stock and set a target price of Rs 1,512 per share, indicating a potential upside of over 32 percent from current levels.

CLSA believes Infosys is well positioned to benefit from the rapid expansion of the generative artificial intelligence (GenAI) market, which it estimates could grow into a $300-400 billion opportunity by 2030. While acknowledging concerns around AI-driven deflation in the IT services industry, the brokerage expects these pressures to be offset by increasing demand for AI agents, token optimisation solutions, and modernisation projects.

According to the brokerage, Infosys is already generating approximately $1 billion in annual revenue from GenAI-related services, with this segment growing faster than the company's overall business. CLSA also noted that Infosys leads its peers in AI adoption based on an analysis of multiple analyst reports.

The brokerage further highlighted that the current tenure of Chief Executive Officer Salil Parekh is scheduled to conclude in March 2027, with the board expected to take a decision regarding leadership succession closer to that date.

The positive outlook comes despite ongoing concerns regarding the impact of artificial intelligence on traditional IT services business models. HSBC recently noted that rising merger and acquisition activity could amplify AI-related challenges for the sector, while AI-led pricing pressure may continue to affect industry growth over the next six to eight quarters.

HSBC also suggested that valuations of IT services companies could stabilise after correcting to a price-to-earnings multiple range of 13-14 times.

Infosys shares closed 3.08 percent lower at Rs 1,144 in the previous session, partly due to an ex-dividend adjustment. The stock has declined nearly 30 percent over the past year, significantly underperforming the Nifty 50 index, which has fallen about 7.6 percent during the same period.

Despite cautious investor sentiment driven by slower client spending, demand uncertainty, and concerns over AI disruption, brokerages continue to highlight Infosys' large deal pipeline, strong AI capabilities, and the potential for a recovery in technology spending over the medium term.