Sterlite Technologies Stock
The Artificial Intelligence (AI) boom has brought huge benefits to technology companies across the world as well as some companies in the infrastructure sector. The biggest example of this in India has emerged as Sterlite Technologies. The shares of this optical fiber company associated with Vedanta Group have increased by almost 500 percent in 2026. In just six months, the market cap of the company has increased from around Rs 4,000 crore to around Rs 30,000 crore. The increasing demand for AI data centers and the need for high-speed connectivity has strengthened this boom. In such a situation, the question running in the minds of investors is whether there is still an opportunity to earn money in this. Let us understand.
AI and data center boom changed the picture of the company
The biggest reason behind the growth of Sterlite Technologies is the rapidly growing AI infrastructure across the world. To run AI models, large data centers and very fast connectivity between them are required. In such a situation, optical fiber network has become an important part of this entire system. According to international brokerage firm Nomura, India’s data center capacity is expected to increase from around 350 MW in 2019 to 1.5 to 1.6 gigawatt in 2025. This represents an annual growth rate of approximately 29 percent, which is higher than the global average. Companies like Sterlite are directly benefiting from this trend.
Big opportunity is coming not only from India but also from global market.
The company’s growth is not limited to India only. Hyperscaler companies around the world are investing heavily in AI-based data centers. Due to this, the demand for optical fiber cables, interconnect solutions and telecom infrastructure is increasing rapidly. According to a report by KPMG, India’s data center industry can reach the level of about $ 45.69 billion by 2033. The increasing use of cloud services in the country, data localization rules and increasing number of internet users are strengthening this sector. In such an environment, Sterlite Technologies seems to be getting a big opportunity for the long term.
Is there still momentum left in the stock?
Despite the tremendous rally of 500 percent in the stock, some brokerage houses are still seeing further possibilities in it. Hong Kong-based CLSA has maintained outperform rating on the stock and given a target of Rs 655, which indicates about 13 percent additional upside from the current level. The company has recently received a big order of $1 billion from an American hyperscaler. Analysts believe that this order will strengthen the company’s global competitiveness and improve its earnings in the coming years. CLSA has also estimated 49 percent EBITDA CAGR between financial years 2026 to 2029.
Valuations are expensive, but the story is not over yet
Experts believe that the valuation of Sterlite Technologies has now reached a very high level, hence investors should be cautious. Analysts at Swastika Investmart and Master Capital Services say that there is scope for further growth in the company’s stock, but the risk has also increased at higher prices. The company has developed its Neuralis portfolio for AI data center connectivity, which includes high speed interconnect cables and ultra high density fiber solutions. According to technical analysts, the level of Rs 525 to Rs 530 remains an important support for the stock. As long as this level is maintained, the bullish trend may continue in the medium term. However, the future movement will largely depend on new orders, better execution and demand from the AI sector.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
