Rajiv Jain of GQG Partners Shifts to AI Investments After Previous Skepticism

Rajiv Jain, the chairman and CIO of GQG Partners, has made a notable shift in his investment strategy regarding artificial intelligence (AI) technologies. After previously labeling the AI boom as the 'dot-com bubble on steroids,' Jain has acknowledged his misjudgment and embraced a more bullish outlook on the sector.

During GQG's half-year results call in August 2026, Jain revealed that three of the firm's four main funds have moved to an overweight position in technology and semiconductors. This marks a significant turnaround from 2025, when Jain was actively divesting from major tech companies such as Nvidia, Alphabet, and Amazon.

The shift in strategy comes after GQG experienced $15.1 billion in outflows during the first half of 2026, leading to a drop in assets under management from $172.4 billion to $156 billion. Jain's initial skepticism stemmed from concerns about the gap between AI spending and revenue generation, which he viewed as a potential setup for disappointment.

However, two key factors contributed to his change of heart: a compression in valuations, particularly for Nvidia, and revised assessments of sustainable demand for AI infrastructure. GQG's management indicated that the AI infrastructure buildout has a longer runway than previously anticipated.

To finance this pivot towards technology, GQG has significantly reduced its holdings in utilities and healthcare, which have not met performance expectations. Analysts were reportedly surprised by the rapidity of this reversal, but GQG's management emphasized that the decision was based on thorough research rather than a reaction to outflows.

As one of the larger active managers globally, GQG's dramatic shift in sector positioning sends a strong signal to the market. The firm's increased focus on semiconductors suggests a belief in the enduring economic potential of the AI infrastructure sector.