E2E Networks, Hitachi Energy India, Mtar Tech, other AI-related shares fall up to 5% amid global sell-off

Among AI-focused stocks in India, Netweb Technologies settled more than 5 percent lower at Rs 4,165 per share on the NSE. The company provides high-performance computing solutions, AI systems and data centre infrastructure, making it a key player in India's AI ecosystem. MTAR Technologies fell 5 percent to Rs 6,810 per share, while Black Box declined 3.5 percent to Rs 793 per share. E2E Networks hit its 5 percent lower circuit limit.

ESDS Software Solution also touched its 5 percent lower circuit limit. E2E Networks and ESDS Software Solution provide cloud computing and data centre services, which support the infrastructure required for AI applications and computing workloads. MTAR Technologies supplies precision engineering products for various sectors, while Black Box provides technology infrastructure and digital solutions.

The decline in Indian technology stocks came amid a broader sell-off in global technology shares following earnings announcements by major companies. Results from Amazon.com Inc. and Intel Corp. raised fresh concerns about capital expenditure on AI infrastructure. Alphabet Inc.'s shares also posted a record decline following its results announcement. "Tech earnings have proven a major hurdle with investors suddenly becoming capex vigilantes," Jai Malhi, a senior equity strategist at Vanda Research told Bloomberg.

"With seemingly higher funding costs of capex, if revenue growth is not beating a high bar then tech names are being punished." Meanwhile, shares of power equipment companies linked to the AI infrastructure theme also declined in the domestic market. The expansion of AI infrastructure requires large investments in data centres, which need substantial power supply and related transmission and distribution equipment.

Hitachi Energy India dropped 3.2 percent to Rs 27,225 per share. GE Vernova T&D India declined nearly 2 percent to Rs 4,020 per share, while CG Power and Industrial Solutions fell more than 3 percent to Rs 804 per share on the NSE. Anant Raj, which is expanding its presence in the data centre business in India, also declined amid selling in AI-related stocks. The company is developing data centre infrastructure to cater to growing demand for computing and storage capacity.

Its shares fell nearly 4 percent to Rs 446 per share. The sell-off was also visible in Asian and US-listed technology stocks. Traders sold shares of Samsung Electronics Co. after the company reported earnings below estimates and delayed the release of its shareholder return plan. In the US, shares of companies linked to AI infrastructure tumbled in premarket trading. Chipmakers Nvidia Corp. and Advanced Micro Devices Inc. fell 2.8 percent and 6.9 percent, respectively.

Server and storage provider Super Micro Computer Inc. declined 5 percent, while power producer Bloom Energy Corp. fell 7 percent. Cloud computing firm CoreWeave Inc. was down 6 percent. The latest earnings announcements have added to concerns over whether heavy investments in AI infrastructure will generate returns quickly enough to justify the high valuations of technology companies.