Susquehanna Financial names its AI-era winners: 9 IT stocks to watch

Susquehanna Financial Group sees opportunity in U.S.-listed IT services amid a rotation away from semiconductor stocks.

The SOX semiconductor index has fallen about 37% from its June peak in less than four months, roughly twice as fast as in the previous two major downturns. IT services stocks have outperformed the S&P 500 by about 22 percentage points.

In three of four previous downturns, services outperformance continued after semiconductors bottomed, though Susquehanna called the small sample a signal, not a forecast.

Susquehanna rates three stocks Positive and six Neutral. Positive implies expected 12-month appreciation of at least 15%; Neutral means performance within 15 percentage points of the market.

The brokerage does not issue an ordinal ranking. Positive names are ordered by implied target upside, and Neutral names by thesis visibility.

Globant - Positive; $70 price target

The target implies about 48% upside from the report’s $47.41 share price. Susquehanna likes its shift to AI Pods and output-based pricing. Glob.AI annual recurring revenue reached $52.8 million, up about 60% quarter-over-quarter, with a $436.8 million pipeline. However, second-quarter revenue was flat year-over-year and the company cut its 2026 revenue and margin outlook. The brokerage says acceleration is needed to support the valuation.

Cognizant - Positive; $82 price target

The target implies about 27% upside from $64.72. Susquehanna backs its “3 Vector” AI strategy - hyperproductivity, industrialized AI and AI agents - to win cost-takeout and process-improvement deals. Generative AI engagements reached 8,500. The brokerage values the stock at about 13 times 2027 earnings.

EPAM Systems - Positive; $190 price target

The target implies about 19% upside from $159.31. Susquehanna sees a path to reacceleration after EPAM signed three large deals that improve 2027 visibility, with more in progress. AI-native services account for 13% of revenue and have grown at a double-digit quarterly pace for seven straight quarters. Third-quarter revenue was $1.43 billion; adjusted margin of 16.7% and EPS of $3.51 beat estimates.

Genpact - Neutral; $42 price target

Susquehanna highlights Advanced Technology Solutions growth of 30.3% in the third quarter, against flat revenue at its larger traditional business. Group revenue beat guidance and gross margin expanded 160 basis points to 38%. Agentic AI contract value is expected to exceed $1 billion in 2026. Legacy-services weakness remains an offset, however, and the brokerage wants clearer evidence of sustained consolidated growth.

Accenture - Neutral; $230 price target

Susquehanna sees growth improving from mid-single digits in 2027 to mid-to-high single digits by 2029, on AI projects and partnerships. But its 2027 estimate implies only 2%-2.5% organic growth. Analysts remain Neutral until management demonstrates that the recovery is taking hold.

IBM - Neutral; $256 price target

Revenue growth accelerated to 6% in constant currency, with Software up 9% and Red Hat up 11%. Consulting grew 2%, with modest Q4 acceleration expected. Susquehanna values the quantum-computing opportunity at about $65 a share, but stays Neutral because growth is slower than the S&P 500.

Kyndryl - Neutral; $16 price target

Signings rose about 46% year-over-year to $4.1 billion; trailing-12-month signings reached $15.5 billion, exceeding revenue. Hyperscaler-related revenue rose 39% to $2.1 billion. But revenue fell 0.8% in constant currency, with a sustained recovery still unproven.

Infosys - Neutral; $11 price target

Second-quarter large-deal contract value reached $5.2 billion, while AI revenue rose 29% quarter-over-quarter to 10.5% of sales. Susquehanna says pricing compression is offsetting new AI business, and Infosys cut its 2027 constant-currency growth outlook to 1%-2%.

DXC Technology - Neutral; $12 price target

Susquehanna sees potential value from a sale of its Insurance Software business and raised its target despite cutting estimates. But bookings disappointed, organic revenue fell 4%, and management lowered 2027 guidance. The brokerage remains Neutral pending better visibility.