WCM Warns of Phony AI Stocks Putting Investors at Risk
Australian Financial Review
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Details
- Date Published
- 20 Oct 2025
- Priority Score
- 3
- Australian
- Yes
- Created
- 22 Oct 2025, 11:36 am
Description
Plenty of lower quality companies are making loose connections to AI, says Ryan Quinn, who is instead doubling down on data centre plays and chip makers.
Summary
Ryan Quinn, portfolio manager at WCM Investment Management, cautions against investing in lower quality companies that artificially affiliate themselves with the AI boom, which could lead to significant investor losses if the current market bubble bursts. His comments highlight concerns about certain AI stocks, drawing parallels to the dotcom bubble of the late 1990s. Quinn's strategy involves focusing on more tangible investments in data centers and chip manufacturers rather than speculative AI stocks. This article emphasizes the importance of discernment in AI investments and signals potential volatility, contributing to the broader discourse on AI-related market risks.
Body
MarketsEquity MarketsSharemarketPrint articleGus McCubbingMarkets reporterOct 21, 2025 – 4.22pmSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginWCM Investment Management portfolio manager Ryan Quinn has warned his Australian clients that amid the euphoria for artificial intelligence-related stocks, there are charlatans that could spur big losses once the market bubble finally bursts.While that hasn’t stopped US-based Quinn, who oversees the $186 billion money manager’s Quality Global Growth Fund, from investing in AI, he cautioned frothy valuations in the tech sector could be linked to the exuberance of the dotcom era in the late 1990s.Loading...Gus McCubbingis a markets reporter in the Melbourne newsroom. He was previously the Australian Financial Review’s Victorian political correspondent.Connect withGusonTwitter.EmailGusatgus.mccubbing@afr.comSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreSharemarketInvestingAIETFsManaged fundsFetching latest articlesThe newest trend in watches? No handsBani McSpeddenTravel is about stories – the ones you hear and tell yourselfThe era of AI shopping is here. It’s not as scary as it soundsWhy Australia’s only listed family office prefers working-class staffSally Patten4 steps to land your first board positionWhat this medical sector CEO eats for breakfastA celebrity portraitist turns his paintbrush on an unlikely championLuke BenedictusAntibiotics screw up your gut. Here’s how to fight backSingapore’s newest resort is also its most unusualAtlassian pays Mike Cannon-Brookes $5.7m for use of his private jetAmelia McGuireWomen wielding $562b lead ‘sideways’ succession boomMystery recording in Waislitz fight with sister-in-law