AI Shock: IT valuations fall near levels seen during subprime crisis
- Posted on May 19, 2026
- By Business News Today
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- 1 min read
AI Shock: IT valuations fall near levels seen during subprime crisis
Indian IT exporters' valuations have plummeted to near 2008-09 subprime crisis levels, trading at 15-18 P/E multiples. This sharp decline, driven by AI advancements impacting headcount-based execution and OpenAI's direct entry into enterprise solutions, has seen stocks lose nearly 30% in 2026. While a weakening rupee offers short-term support, the AI overhang is expected to cap medium-term gains.
