New Delhi, Nov. 6 -- Rising investment in artificial intelligence (AI) infrastructure by global technology companies is increasing pressure on their cash flows and balance sheets, creating potential investment opportunities for India's IT services sector, according to a report by brokerage firm Anand Rathi.

The report said that while demand for AI and cloud services remains strong, the growing cost of building infrastructure is raising concerns about whether technology companies can convert their investments into sustainable financial returns.

"The AI infrastructure buildout is becoming increasingly capex intensive, amid accelerating underlying demand," the brokerage said.

The global technology and AI-related stocks witnessed a sharp c...