GQG's Jain Warns of AI Bubble, Calls Performance "Disappointing"

GQG Partners founder and CIO Rajiv Jain believes the hype around AI stocks is similar to the dotcom bubble, but ultimately will come good. His firm's performance in H1 2025 has been disappointing, with a slowdown in flows and underperformance. Jain attributes this to the hype around AI stocks, which he believes is unsustainable.

GQG Partners founder and CIO Rajiv Jain recently expressed his concerns about the hype surrounding AI stocks, likening it to the dotcom bubble on steroids [1]. Despite the firm's disappointing performance in the first half of 2025, Jain remains optimistic about the long-term potential of AI investments. The slowdown in flows and underperformance can be attributed to the unsustainable hype around AI stocks, according to Jain.

Meanwhile, private equity firm Thoma Bravo has made a significant move in the software industry by acquiring AI-powered customer engagement platform Verint Systems for $2 billion [2]. This acquisition underscores the growing importance of AI in navigating economic uncertainties. Verint's AI-powered platform helps enterprises manage and improve customer interactions across various channels and digital operations, making it a valuable addition to Thoma Bravo's portfolio.

Thoma Bravo's acquisition of Verint aligns with their strategy of investing in companies that leverage data and AI for customer experience automation. The deal, which includes an equity value of $1.23 billion, marks a strategic move for both entities. Verint's customer base, which includes more than 85% of the Fortune 100 companies, is expected to benefit from the integration with Calabrio, another company in Thoma Bravo's portfolio.

The acquisition of Verint Systems is part of a broader trend in the software industry, where companies with AI capabilities and recurring revenue models are becoming prime acquisition targets. This trend is driven by the resilience of AI adoption and recurring revenue in an economy pressured by tariffs and volatile customer spending.

In conclusion, while the hype around AI stocks may be unsustainable in the short term, the long-term potential remains promising. Thoma Bravo's acquisition of Verint Systems highlights the strategic importance of AI in the software industry and underscores the resilience of AI adoption in navigating economic uncertainties.

References:
[1] https://citywire.com/funds-insider/news/air-coming-out-of-ai-bubble-says-gqgs-jain/a2472667
[2] https://theoutpost.ai/news-story/thoma-bravo-acquires-ai-powered-customer-engagement-platform-verint-for-2-billion-19487/