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

India’s AI story has a new highlight. It points at two big internet companies. On June 26, 2026, Bank of America (BofA, a large global bank) shared a report. It said two companies, Meesho and Eternal, could give investors the next big gains. The idea is simple. Most companies use AI to save money. But these two could use AI to earn new money. BofA thinks the stock market has not yet noticed this. (AI, or artificial intelligence, means smart computer software that can understand language, suggest products, and even shop for you.)

Here are some words to know. A “brokerage report” is research that a big bank’s experts write to help investors. (Investors are people who put money into companies hoping to gain more later.) “Upside” means how much higher a stock price could go.

What Is The BofA AI Thesis?

BofA makes a clear point. Most Indian internet companies already use AI for simple but useful jobs. They make your app feed more personal. They answer support questions. They plan delivery routes. These gains are real. But BofA says they are “already largely baked in market expectations.” In plain words: stock prices already assume these savings will happen.

So where is the surprise? BofA thinks the next big jump will come from companies that use AI to make brand-new money. Not just to cut costs. With that idea, BofA picks Meesho and Eternal.

Why Meesho Stands Out

BofA calls Meesho the best company for good AI surprises. The reason is its voice AI shopping helper called Vaani. Many shoppers in Tier 3, 4, and 5 towns (smaller cities and village areas) find it easier to talk than to type. Vaani lets them shop by just speaking. That could bring in millions of new buyers who were hard to reach before.

This is a big deal. India’s next group of online shoppers will mostly come from these smaller towns. A voice helper that understands what they need could turn simple lookers into real buyers.

Why Eternal Is The Second Pick

Eternal is BofA’s other top pick. Eternal is the parent company of Zomato and Blinkit. Its strength is its link to premium users (shoppers who spend more) and to D2C and FMCG brands. D2C means “direct to consumer” — brands that sell straight to shoppers. FMCG means “fast-moving consumer goods,” like food and everyday household items.

BofA’s growth idea here is AI advertising. Eternal knows a lot about what its big-spending users buy. So it can help brands show smarter, better-aimed ads. Better ads mean Eternal can charge more for them. That becomes a fresh way to earn money.

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 exact upside numbers for either stock in the article.

What Are The Risks?

BofA is honest about the dangers. One worry is “token costs.” Tokens are the tiny pieces of text an AI reads and writes. Each one costs a little money to handle. In India, the average money earned per user (called ARPU) is low, but people use apps a lot. So these AI costs may be bigger than the extra money they bring in.

The second risk is “agentic AI.” This is AI that can act on its own to finish a job for you — like comparing prices and placing an order by itself. BofA warns this could help new rivals build fresh kinds of business. That would mean more competition for today’s leaders.

FAQ

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

BofA names Meesho and Eternal as best placed for good AI surprises. The reason: they can use AI to make new money, not just to cut costs.

What is Meesho’s AI advantage?

Its voice helper Vaani lets shoppers in smaller Tier 3–5 towns buy by speaking instead of typing. That opens up a big new group of buyers.

What are the main risks BofA flagged?

High AI token costs in a low-ARPU market. And agentic AI that could let new rivals enter with fresh kinds of business.

Why It Matters (Especially For India And Founders)

This report changes how we look at AI for Indian startups. The lesson for founders is simple. AI that only saves money is the basic minimum. AI that makes a new kind of money is what excites investors. Two such ideas are voice shopping for Bharat (smaller-town India) and AI-powered advertising. For investors, it hints at where the next gains in Indian internet stocks may come from. It also fits a bigger debate about AI changing what companies are worth. That worry hangs over IT firms too; see our piece on Infosys hitting a five-year low amid AI fears.

The main point: 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 can do it is the story to watch in 2026.

Source: Financial Express.