After a strong week for IT stocks led by HCLTech, the sector witnessed some profit booking despite positive developments around AI and acquisitions. Gaurang Shah, Sr. VP, Geojit Investments believe the IT industry is entering a new phase where artificial intelligence, strategic acquisitions and technological innovation will play a critical role in determining winners and losers. Recent acquisitions by HCLTech and Coforge underscore how Indian IT firms are positioning themselves for the AI-driven future. However, Gaurang Shah caution investors against expecting the kind of outsized returns the sector delivered a decade ago. Instead, a selective, stock-specific approach with a long-term investment horizon of 18-24 months may be more appropriate.