Information Technology: Signs of a structural shift to a new growth era emerging

Information Technology: Signs of a structural shift to a new growth era emerging

Global sentiment has turned cautious on Tech/IT services cos. due to fears of AI disruption. This global trend has put pressure on local leaders (incl. FPT) as foreign investors react to perceived structural risks and focus on low growth prospects. While short-term growth could be challenged on ‘AI deflation’ and tighter discretionary spending, fast-adapting companies will emerge as winners. AI serves as a ‘power tool’ to modernize legacy code and manage complex integrations, allowing firms to deliver more value within existing budgets. We believe AI-IT partnerships to modernize legacy platforms will be key, as firms remain essential architects of complex enterprise systems. FPT, trading on an attractive valuation, offers a ‘the buy dip’ opportunity for long-term investors.