tech
The 'SaaSpocalypse' is over, says private equity giant Thoma Bravo. Here's why it sees an AI boom for software
Thoma Bravo founder Orlando Bravo says AI offers an "enormous tailwind" for software companies.
TL;DR
- The period of concern known as the 'SaaSpocalypse' for software companies has concluded.
- AI is now considered an 'enormous tailwind' for the software industry.
- Thoma Bravo's software portfolio companies are experiencing significant growth driven by AI, with nearly half of new revenue attributed to AI.
- Software companies are evolving and can achieve new levels of performance by automating judgment and processes using AI.
- Software stocks have recovered since February, with the iShares Expanded Tech-Software Sector ETF showing strong performance.
- High-growth areas like semiconductors remain attractive for investors, although the market is in a period of adjustment and discovery regarding AI tools.