Orlando Bravo says some software names hit by AI deserve a valuation cut

2026-03-17 | original

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Why This Matters

Orlando Bravo highlights that AI will accelerate disruption in the software industry, leading to justified valuation adjustments for certain companies. This signals a significant shift in how software firms are valued and underscores the growing influence of AI in shaping market dynamics. For investors and consumers, understanding these changes is crucial for navigating the evolving tech landscape.

Key Takeaways

AI will accelerate disruption in software companies.
Some software valuations are justified to be lower due to AI impact.
Investors should reassess company valuations considering AI-driven changes.

Thoma Bravo co-founder Orlando Bravo on Tuesday said that artificial intelligence will disrupt software companies faster, and some of the hits to valuation are "very warranted."

"There are many, many software companies in the public markets that will be disrupted from AI," he told CNBC's Leslie Picker at Thoma Bravo's investor meeting in Miami. "Those companies were going to be disrupted anyway."

Bravo did not name the companies he felt deserved lower valuations or those that were in danger of disruption.

Thoma Bravo is a software-focused investment firm founded in 2008. As of December, the firm had over $183 billion in assets under management in 77 companies.

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