Bank of America has maintained its 'Buy' rating and target price of ₹5,000 on Netweb Technologies India Ltd., according to latest reports from BofA. The brokerage's target price implies an upside of around 14% from the stock's current market price of approximately ₹4,395.10, as per CNBC-TV18. BofA positions Netweb as India's largest compute solutions OEM and expects it to be a key beneficiary of the country's AI investment cycle, backed by its asset-light business model and strong technological capabilities. The brokerage believes Netweb is one of the biggest beneficiaries of India's rapidly expanding artificial intelligence (AI) infrastructure buildout, with the company expected to deliver 30-40% CAGR over the coming years, driven by its technology leadership, long-standing partnership with NVIDIA, and growing presence in high-performance computing (HPC) and AI server solutions.
According to BofA Securities, Netweb has demonstrated remarkable market expansion, increasing its supercomputing market share from 2% in FY20 to 9% in FY26. The brokerage attributes this growth to the company's 15-year partnership with NVIDIA, making it the only Indian OEM to have deployed AI supercomputing systems used in some of the country's fastest supercomputers. Netweb enjoys Elite Partner status with NVIDIA, which provides significant competitive advantages. The company has also developed an in-house software stack that enables significantly higher profitability than traditional hardware resellers, with long-standing relationships with key customers accounting for nearly 40% of revenue. Netweb's capital-light model allows it to participate in India's AI infrastructure expansion without undertaking heavy capital expenditure, as customers fund the underlying capex while Netweb focuses on designing, integrating and deploying AI computing infrastructure.
BofA expects India's AI infrastructure market to expand rapidly, forecasting a 30-40% compound annual growth rate (CAGR) as demand for computing capacity accelerates across enterprises, government projects and cloud providers. According to the brokerage, India's server market will expand to nearly $45 billion (₹4.3 lakh crore) by 2030 from about $3 billion (₹287.7 crore) in 2023. The addressable market for specialist OEMs such as Netweb is projected to grow to around $9 billion by the end of the decade. Apart from AI servers, demand is expected to be supported by private cloud deployments, enterprise digital transformation, data localisation requirements, research institutions, defence projects and the government's National Supercomputing Mission. The brokerage estimates India's server consumption market could grow from around $3 billion in CY23 to nearly $45 billion by CY30, with the addressable market for specialised OEMs like Netweb reaching approximately $9 billion by the end of the decade.
According to BofA Securities, Netweb is expected to benefit significantly from operating leverage as revenue scales up, allowing the company to remain competitive on pricing despite a high-inflation environment while maintaining broadly stable profitability. The brokerage forecasts Netweb's revenue and earnings per share (EPS) to grow at about 40% annually between FY26 and FY29, supported by a healthy order book, robust execution pipeline and favourable industry tailwinds. BofA expects the company to maintain broadly stable profitability by leveraging operating efficiencies despite a high-inflation environment. However, the brokerage has flagged volatility in AI-related investment sentiment and sustained increases in memory prices as key risks to margins. The brokerage believes Netweb Technologies is well positioned to emerge as one of India's leading AI infrastructure companies, supported by its technological leadership, strategic partnerships and exposure to one of the fastest-growing segments of the domestic technology market.
As per CNBC-TV18, Netweb Technologies shares were trading 0.11% lower at ₹4,395.10 on the NSE on Tuesday, following the latest market developments. The stock has demonstrated strong performance with a rally of over 40% so far this year, reflecting investor confidence in the company's AI infrastructure growth prospects. The positive market response to the BofA coverage suggests investor recognition of Netweb's strategic positioning in India's expanding AI ecosystem and the potential for continued growth in the specialized compute solutions market.
