Infosys partners with StarHub for digital transformation, securing multiple clients in various industries.

From Nasdaq: 2024-12-13 08:26:00

Infosys shares have surged 30.6% in the past six months, outperforming industry and sector benchmarks as well as the S&P 500. This reflects investor confidence in Infosys’ financial strength, diverse portfolio, and expanding customer base.

Infosys Compaz, a subsidiary of Infosys, has partnered with StarHub to drive digital transformation. StarHub will use Infosys Cobalt for cloud capabilities and Infosys Topaz for AI integration. The collaboration aims to co-create AI models using telecom-specific data.

Infosys has secured multiple clients this year for cloud, cybersecurity, and AI solutions, spanning industries like healthcare, finance, and media. These partnerships have bolstered Infosys’ order pipeline and revenue growth potential.

To enhance its digital and AI offerings, Infosys has formed strategic alliances with industry leaders like Archrock, Google, and Adobe. Acquisitions like In Semi have boosted Infosys’ R&D capabilities in AI, 5G, and high-performance computing.

Despite its growth prospects, Infosys faces challenges from macroeconomic factors like inflation and interest rates. Currency volatility between the Indian Rupee and U.S. Dollar also impacts its revenues, although recent rate cuts by the Federal Reserve may offer some relief.

The Zacks Consensus Estimate for Infosys’ fiscal 2025 revenues shows modest single-digit growth at 4.8%, indicating steady but not rapid expansion. Investors may want to wait for a better entry point due to Infosys’ stretched valuation and hold rating from Zacks.

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Read more at Nasdaq: Infosys Boosts StarHub’s IT Capability: What Should Investors Do?