Ep 220: David Jenkins - Dot-Com on Steroids Reality Check for the AI Era

About this episode

David Clark interviews David Jenkins about the implications of the AI-driven market and GQG Partners' contrarian investment strategy.

Is the current AI-driven market rally a structural revolution or a speculative mirage? David Clark sits down with David Jenkins , Client Portfolio Manager at GQG Partners , to dissect the firm's recent contrarian stance on the technology sector. Investors are feeling the squeeze of a "growth-at-any-cost" market. Jenkins explains why GQG, a firm managing over $250 billion AUD, is moving toward a defensive, value-oriented posture. We dive deep into their provocative white paper series, "Dot-Com on Steroids," exploring the "circularity" of AI capital expenditure and the looming risks in the private credit and data center boom. If you’ve been questioning the sustainability of triple-digit multiples and wondering where to find quality when "gravity" eventually returns to earnings, this conversation provides a necessary, fundamental-based reality check. Key take aways: The AI Capex Mirage: Why the massive spending by "hyperscalers" may be creating a circular revenue trap that isn't backed by real-world earnings. Quality vs. Hype: Understanding GQG’s "forward-looking quality" philosophy and why they believe traditional tech…

People in this episode

Host: David Clark

Guest: David Jenkins

Topics covered

• AI market rally
• technology sector
• value investing
• capital expenditure
• private credit risks
• data center boom

Keywords

• AI
• market rally
• value-oriented investing
• technology sector
• capital expenditure
• investment strategy
• GQG Partners

Mentioned in this episode

Organizations: GQG Partners, GQG

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