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India’s AI Pivot: Why BofA Says Meesho And Eternal Could Be The Next Big Upside

India’s AI pivot has a new spotlight, and it is pointing at two internet giants. In a report dated June 26, 2026, Bank of America (BofA) said Meesho and Eternal could deliver the next big upside for investors. The idea is simple but powerful: most companies use AI to cut costs, but these two could use it to make new money. That difference, BofA argues, is what the stock market has not yet priced in.

For readers new to this, a “brokerage report” is research that a big bank’s analysts publish to guide investors. “Upside” means how much higher a stock could go. And “AI” (artificial intelligence) here means smart software that can understand language, recommend products, and even shop on your behalf.

What Is The BofA AI Thesis?

BofA makes a sharp point. Most Indian internet companies already use AI for the boring-but-useful stuff: personalising your feed, answering support questions, and planning delivery routes. Those gains are real, but BofA says they are “already largely baked in market expectations.” In plain words, the stock prices already assume these savings will happen.

So where is the surprise? BofA believes the next jump comes from companies that use AI to create brand-new revenue streams, not just trim costs. That is the lens through which it picks Meesho and Eternal.

Why Meesho Stands Out

BofA calls Meesho the best-placed company for positive AI surprises. The reason is its voice-based AI shopping assistant called Vaani. Many shoppers in Tier 3, 4, and 5 towns (smaller cities and rural areas) find it easier to speak than to type. Vaani lets them shop by simply talking. That could open up millions of new customers who were hard to reach before.

This matters because India’s next wave of online shoppers will mostly come from these smaller towns. A voice assistant that understands local needs could turn casual browsers into paying buyers.

Why Eternal Is The Second Pick

Eternal (the parent of Zomato and Blinkit) is BofA’s other top pick. Its edge is access to premium users and to direct-to-consumer (D2C) and FMCG brands. D2C means brands that sell straight to shoppers, and FMCG means fast-moving consumer goods like food and household items.

BofA’s growth angle here is AI-driven advertising. With rich data on what premium users buy, Eternal can help brands show smarter, better-targeted ads. Better ads usually mean Eternal can charge more, which becomes a fresh revenue stream.

Company	BofA’s AI growth driver (as reported)
Meesho	Vaani voice AI shopping assistant for Tier 3–5 markets
Eternal	AI-driven advertising via premium users and D2C/FMCG brands

Note: BofA’s report did not publicly share target prices, ratings, or specific upside percentages for either stock in the article.

What Are The Risks?

BofA is honest about the dangers. One worry is “token costs.” Tokens are the small units of text an AI model processes, and they cost money each time. In a market like India, where the average revenue per user (ARPU) is low but usage is high, those AI costs might not be matched by enough extra revenue.

The second risk is “agentic AI.” This means AI that can act on its own to complete tasks, like comparing prices and placing an order for you. BofA warns this could let new rivals build fresh business models and increase competition for today’s leaders.

FAQ

Which stocks does BofA favour in India’s AI pivot?

BofA highlights Meesho and Eternal as best placed for positive AI surprises, because they can use AI to create new revenue, not just cut costs.

What is Meesho’s AI advantage?

Its voice assistant Vaani lets shoppers in smaller Tier 3–5 towns buy by speaking instead of typing, opening a large new customer base.

What are the main risks BofA flagged?

High AI token costs in a low-ARPU market, and agentic AI that could let new competitors enter with fresh business models.

Why It Matters (Especially For India And Founders)

This report reframes the AI story for Indian startups. The lesson for founders is clear: AI that only saves money is table stakes; AI that creates a new revenue line is what excites investors. Voice commerce for Bharat (smaller-town India) and AI-powered advertising are two such lines. For investors, it is a hint about where the next gains in Indian internet stocks may come from. It also fits a wider market debate about AI reshaping company values, similar to the worries hanging over IT firms; see our piece on Infosys hitting a five-year low amid AI fears.

The takeaway: BofA thinks the easy AI savings are already in the price. The real upside, it argues, belongs to companies like Meesho and Eternal that turn AI into brand-new income. Whether they pull it off is the story to watch in 2026.

Source: Financial Express.