Tata Communications Ltd.TATACOMM₹1,870.20 +10.22%

Shares of Tata Communications Ltd. surged up to 15%, reaching an intraday high of ₹1,947.90 apiece.

This sentiment intensified following a recent announcement by TCS of its plan to develop a massive 1 GW of AI-driven data center capacity over the next five to seven years.

Tata Communications, with its robust data connectivity and cloud infrastructure network, is strategically positioned to be a major beneficiary of this group-wide push. The stock stands to gain significantly from an expected boost in its data center-to-data center (DC-to-DC) connectivity business. This focus on internal group collaboration reinforced expectations that Tata Communications will be integral to the emerging AI and data center landscape. The company’s commitment to innovation in this space is further evidenced by TCS’s launch of a new AI Experience Zone and Design Studio in London, its second such hub globally.

Investor confidence is backed by the sheer scale of the parent group’s existing presence. In FY2024 alone, TCS contributed £3.3 billion GBP to the UK economy and supported over 42,700 jobs directly or through its supply chain across 19 sites. Significantly, 15,300 of these roles are in critical technology fields like engineering and data analytics, directly addressing the estimated £1.5 billion per year skills gap in the UK. This massive, established footprint lends substantial weight to the group’s future technology and infrastructure plans, making Tata Communications’ anticipated role more pivotal.

Over the last five years this stock has delivered mutlibagger returns of more than 115%.

Let’s take a look at its Factor Analysis scores:

Note: The stock price mentioned is as of 3:30 pm.