Shares of Netweb Technologies India Ltd surged 9.78% to ₹1,604.40 on Tuesday after the company issued a clarification regarding recent global AI advancements, particularly the emergence of DeepSeek, and their potential impact on its business.
Company’s AI Clarification
Netweb Technologies addressed concerns over AI disruptions, stating that DeepSeek and similar advancements represent an opportunity rather than a threat to its growth trajectory in high-end computing solutions (HCS). The company emphasized that its core business remains aligned with the increasing demand for AI-driven computing infrastructure.
Netweb highlighted three key factors supporting its AI-related growth:
- Market Expansion: The adoption of AI is expected to increase computing needs, with DeepSeek lowering the cost of AI models, making high-performance computing more accessible.
- GPU-Neutral AI Solutions: Netweb’s AI portfolio supports multiple GPU and APU platforms, making it adaptable for various AI workloads, including training and inference models.
- Government & Enterprise AI Adoption: India’s AI-focused policies and push for indigenous AI models align with Netweb’s strategic vision, reinforcing its strong positioning in AI computing solutions.
Strong Business Fundamentals
The company reassured investors of its resilient financial performance, citing:
- Over 60% YoY revenue growth in 9MFY25, following a 62% increase in FY24.
- A robust order pipeline of ₹3,603 crore in confirmed orders, ₹3,481 crore in L1 orders, and a ₹38,149 crore project pipeline as of December 31, 2024.
- Expanding R&D and manufacturing capabilities, ensuring long-term AI adoption across industries.
Market Response
Netweb Technologies’ shares rebounded sharply after Monday’s decline, fueled by concerns over AI-related disruptions. The company’s clarification reassured investors that AI advancements will enhance, not hinder, its business model, driving renewed confidence in its growth potential in AI computing, private cloud solutions, and high-performance computing infrastructure.
With AI adoption accelerating globally, analysts believe Netweb’s technology-agnostic approach and government-aligned strategy position it well for long-term growth in the AI infrastructure sector.
