3 US tech stocks supporting India’s US trade and AI growth

Delays in the India-US trade deal have left India’s US trade-exposed technology stocks in the spotlight as tariffs and market access issues remain a concern. For investors, the combination of progress and uncertainty can create both potential and risk as companies adjust their cross-border operations, pricing, and supply chains. In this article, we explain how the current India-US trade talks could mean for some US technology stocks and highlight three stocks from our India-US Trade Disclosure Technology Stock Screening Tool that could be positively impacted if India-US trade talks progress.

DXC Technology (DXC)

overview: DXC Technology is a global IT services company that helps large enterprises modernize their systems by supporting digital transformation across sectors such as finance, healthcare, manufacturing, and the public sector with specialized software in consulting, software engineering, cloud and data center management, and insurance.

operation: DXC generates the majority of its USD 12.6 billion revenue from global infrastructure services at approximately USD 6.3 billion, followed by consulting and engineering services at approximately USD 5 billion and insurance services at approximately USD 1.3 billion, with significant exposure to the United States, Europe, and Australia.

Market capitalization: 1.4 billion USD

DXC Technology sits at the intersection of U.S.-India trade, cloud infrastructure, and AI, so delays in trade agreements are important for this stock. While the company is ramping up its AI efforts through its global partnership with Anthropic and its DXC OASIS platform, it remains heavily reliant on its traditional infrastructure services business, which has seen declining revenues and lower margins. Add in high debt, a recent US$168 million worth of litigation victory against Tata Consultancy Services, and mixed signals on earnings and valuation, and DXC has a complex mix of potential upside and execution risks that investors may want to understand more deeply before making any outlook.

DXC Technology’s Anthropic Alliance and DXC OASIS are pushing the story beyond traditional infrastructure, but the real mystery is how it fits in with the cash generation, debt, and legal consequences of DXC Technology’s DCF valuation analysis.

Kindrill Holdings (KD)

overview: Kyndryl Holdings is a large-scale IT services and technology infrastructure provider that designs, runs, and maintains mission-critical systems for enterprises around the world, covering cloud migration, data and AI, cybersecurity, digital workplace, and network services across industries such as finance, healthcare, government, telecommunications, and retail.

operation: Kyndryl generates most of its revenue from principal markets of approximately US$5.4 billion and strategic markets of approximately US$3.6 billion, with Japan contributing approximately US$2.3 billion and the United States contributing approximately US$3.8 billion.

Market capitalization: 2.4 billion USD

Kyndryl Holdings is a target for India-US trade because it uses a large India-based team to provide core IT infrastructure and cloud services to US customers, and deepens its partnerships with AWS, Google Cloud, and Microsoft to support AI and digital workplace projects. Investors may be drawn to the company’s expanding AI and cloud partnerships, increased consulting engagements, and analysts’ expectations for improved profitability and future ROE, but they still need to consider legacy contracts, high debt, and recent earnings weakness. Unfinished trade deals could amplify both sides of this story, as easing tariffs would make India-based shipping more valuable, while further rising costs and regulatory frictions would complicate it further.

Kyndryl Holdings appears to be an IT powerhouse with India-based delivery, cloud alliances, and AI projects, but the real story lies in how all this plays out in Kyndryl Holdings’ analyst forecasts, which hides a twist that most investors are missing.

Commvault System (CVLT)

overview: Commvault Systems provides cyber recovery software that enables businesses to back up, protect, and recover critical data and applications across on-premises and cloud environments with products for ransomware protection, rapid recovery, and compliant data management.

operation: Commvault Systems generates approximately US$1.18 billion in revenue from software and programming, including approximately US$631 million from the United States and approximately US$552.7 million from other international markets.

Market capitalization: 5.4 billion USD

Commvault Systems operates at the intersection of AI-era cyber risk and increasing data regulation, providing ransomware-proof backup, automated recovery, and cloud-centric tools that have gained traction among large enterprises in both the U.S. and India. Investors may be interested in the company’s recurring subscription shifts, ARR momentum, and partnerships with cloud providers and IT services companies, but they’ll also be weighing the company’s debt levels, one-time losses, and its high P/E ratio compared to some of its software peers. Additionally, discussions about potential divestitures, management changes, and insider sales have contributed to a complex story of cybersecurity exposure to India-US trade that many investors are still evaluating.

Commvault Systems’ cyber resiliency pitch, subscription shift, and exposure to India and the U.S. may mask a much sharper risk-reward profile than it appears at first glance. The big picture is in the overall story of Commvault Systems

The three stocks in this article are just a starting point. Our full screen of technology stocks exposed to India-US trade reveals an additional 33 companies that combine India-US trade exposure with equally compelling stories in IT services, software, and outsourcing. Use Simply Wall St to identify and analyze the specific catalysts, financial characteristics, and cross-border narratives that matter most to you, allowing you to focus on the ideas with the highest conviction on the subject.

Take control of your investment journey

If you think DXC Technology or any of these companies is a great opportunity, sign up for free on Simply Wall St and add the companies to your watchlist to watch stock prices relative to fair value, the ideal entry point. Once migrated, manage your holdings with a portfolio command center that filters out the noise and delivers only the most important and actionable updates. Our community allows you to filter the best ideas from thousands of investor perspectives throughout your journey. Discover hidden catalysts and risks early to accelerate decision-making and stay ahead of the market.

Are you looking for alternatives to Indian and US technology?

Fresh opportunities can quickly move from quiet to crowded places. Find ideas with truly breakthrough potential and embrace them early, before they’re currently on the radar.

• Target companies with strong balance sheets before momentum catches up to them by scanning our curated list of strong balance sheets and fundamentals (48 results) with a focus on financial strength and sustainability.
• Get on board with the long-term income theme by checking out 8 Dividend Fortresses. Act now as it could help you identify whether your payments will continue even if sentiment elsewhere is down.
• Check out these 49 AI infrastructure stocks, focused on companies that are building the backbone while AI growth matters, to understand where they stand amid structural technology change.

This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

Do you have feedback on this article? Interested in its content? Please contact us directly. Alternatively, email editorial-team@simplywallst.com.