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AI Surges: Mid-Cap IT Stocks Poised for Growth
24 Jun
Summary
- Investors seek mid-cap IT firms where AI is a key revenue driver.
- Coforge acquired Encora for $2.35 billion to boost AI services.
- Cyient and Persistent Systems also expand AI capabilities via acquisitions.
Investors are increasingly looking beyond traditional large IT services companies, focusing instead on mid-cap IT stocks where Artificial Intelligence is already a key revenue driver.
Companies like Coforge, Cyient, and Persistent Systems are strategically expanding their AI-based revenues. Coforge completed its acquisition of California-based Encora for approximately $2.35 billion in late April 2026, significantly boosting its AI-led engineering, data, and cloud services capabilities.
Similarly, Hyderabad-based Cyient acquired California-based TAO Digital Solutions in May 2026 to enhance its data engineering and AI-enabled platform solutions. Pune-based Persistent Systems expanded its European presence by acquiring Concise Systems OÜ, strengthening its AI-led product engineering and cloud-native technologies.
These mid-cap IT firms are leveraging acquisitions to scale up their AI-based revenues, positioning themselves for future growth. Investors are advised to monitor these stocks throughout 2026 to see if their AI revenue expectations are met.
