Sterlite Tech Stock Rallies on AI-Focused Data Centre Push

By siliconindia  |  Monday, 16 June 2025, 12:53 IST

Sterlite Tech Stock Rallies on AI-Focused Data Centre Push
  • Sterlite Technologies shares surged nearly 12 percent after announcing new AI-driven data centre solutions targeting hyperscalers, telcos, and enterprises.
  • Company eyes $517B global data centre market by 2030; partners with Tech Data India to boost domestic distribution of high-performance cabling.
  • Stock up 56 percent in 3 months, aided by a Rs 2,631 crore BSNL BharatNet order with Dilip Buildcon, though analysts see limited upside from current levels.

Sterlite Technologies shares spiked almost 12 percent on Monday, June 16, following the announcement by the company to expand its data centre portfolio to meet increasing demand from AI-infused infrastructure. The stock was one of the biggest gainers in the broader markets.

In an exchange filing, the company stated that it has introduced a new generation of data centre solutions ranging from cabling to end-to-end connectivity focused on addressing hyperscalers', colocation providers', enterprises', and telecom operators' unique needs. Sterlite forecasts the global data centre market to touch $517 billion by 2030 at a CAGR of 10.5 percent.

The new offerings are high-performance fibre and copper cabling solutions designed for smart buildings, campuses, and data centres. The company explained its copper systems provide secure, dependable data and AV connectivity, and its riser and campus fibre cabling provide high-speed, low-latency networking.

To enhance distribution in India, Sterlite has joined hands with Tech Data India, which is a subsidiary of TD SYNNEX. Tech Data is a specialist in emerging technologies like cloud, cyber security, AI, IoT, and analytics.

Sterlite Tech, along with Dilip Buildcon, last week won an order worth Rs 2,631 crore from BSNL under the BharatNet project. The order includes constructing and operating middle-mile connectivity infrastructure in Jammu & Kashmir and Ladakh.

Trendlyne assigns an average target price of Rs 93 to Sterlite Tech, indicating little upside from here. Of the two analysts following the stock, the majority have a 'Buy' call. The stock has appreciated 56% in the last three months but is down 20 percent in the last two years. Its market capitalisation is currently at Rs 4,532 crore.

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