Rajiv Jain, founder of GQG Partners, has reversed his bearish stance on artificial intelligence. A year after calling the AI boom the "dot-com bubble on steroids," Jain began piling into technology stocks in July. The shift followed an 18-month period where his funds trailed peers, erasing long-term outperformance and prompting investors to withdraw $36 billion since mid-2025.

GQG more than tripled its tech allocation in its emerging-market fund to about 35% in August, with Taiwan Semiconductor Manufacturing Co. and Samsung Electronics now accounting for 28% of its flagship international equity fund, up from 5.4% in July. To fund the reshuffle, Jain pared positions in Brazil and India, selling that exacerbated declines in Brazilian stocks. In an earnings call, Jain cited improved valuations, stronger computing demand, and a rebound in GPU prices.

The pivot is classic Jain, a three-decade veteran known for concentrated bets. Alex Shahidi of Evoke Advisors called the stance change a strength. GQG’s international fund returned about 12% over the past year, trailing its benchmark’s 21% gain.

Investors withdrew $12 billion in the second half of last year and a further $24 billion through August. Jain held his ground until late July, when he suddenly shifted strategy amid the relentless AI rally adding trillions to global markets.