The robust rally in India's AI-linked stocks is facing its biggest test yet as concerns grow that the global AI trade may be running ahead of fundamentals, raising the risk of sharp corrections in some of the market's biggest multibaggers. Companies linked to data centres, cloud infrastructure, power transmission and high-performance computing have been among the biggest wealth creators of the past two years.
But market experts warn that investors are increasingly scrutinising whether the earnings outlook can justify the rapid expansion in valuations. The caution comes amid turbulence in global technology markets. A sharp selloff in Asian tech stocks recently highlighted the risks of excessive concentration in AI-linked names, particularly in markets such as Taiwan and South Korea where semiconductor companies have come to dominate benchmark indices.
