The surge follows Tata Consultancy Services’ (TCS) announcement of plans to build 1GW of AI data centre capacity over the next five to seven years.
Market analysts said Tata Communications, with its vast land bank, could play a crucial role in this expansion by providing the data centre-to-data centre (DC-to-DC) connectivity required for TCS’ AI infrastructure.Tata Communications already builds solutions that seamlessly link enterprises, cloud platforms, and data centres, analysts noted, adding that the company is well-positioned to benefit from the group’s growing AI and data ambitions.
From a technical standpoint, Tata Communications is trading above all eight of its key simple moving averages (SMAs) — from the 5-day to the 200-day — signalling strong bullish undertones across short-term and long-term charts.Also Read: TCS targets leadership in AI-led tech services, expands capabilities through Salesforce acquisition
Meanwhile, TCS shares fell nearly 2% on Friday after reporting a weaker-than-expected Q2 profit, even as optimism around its AI-led restructuring buoyed sentiment for group companies.
As of 3:17 PM, the stock was trading 9.8% higher at ₹1,864.5 as of 3:17 PM, up from Thursday’s close of ₹1,696.80. The company’s market capitalisation stood at ₹53,722.5 crore, reflecting renewed investor confidence in the large-cap telecom and cloud solutions provider.
