The Economic Times·2026-03-17 05:03Group 1: Nvidia's AI Chip Revenue Potential - Nvidia announced that the revenue opportunity for its artificial intelligence chips may reach at least $1 trillion through 2027, highlighting a significant growth potential in the AI sector [1] - CEO Jensen Huang emphasized that "the inference inflection has arrived" and noted that demand for AI technology continues to increase [1] Group 2: Market Reactions and IT Sector Impact - Following Nvidia's announcements, Wall Street experienced a positive reaction, with the S&P 500 climbing 1% to end at 6,699, marking its strongest one-day gain in over a month [2] - The Indian IT sector faced declines, with shares of major companies like Coforge dropping around 6%, and Tata Consultancy Services (TCS) and HCL Technologies falling nearly 2%, contributing to a more than 2% drop in the Nifty IT index [6][8] Group 3: Investor Sentiment and Future Outlook - Investors are closely monitoring the upcoming US Federal Reserve's FOMC meeting, as its outcome is expected to influence sentiment around IT stocks, particularly since many Indian IT companies derive a significant portion of their revenue from the US market [4][5] - Nuvama noted that the recent sharp correction in IT stocks, attributed to fears of AI-led disruption, has made valuations attractive, suggesting that the Indian IT services industry is not facing an existential threat from generative AI [9]