Australian pension fund UniSuper disregards AI bubble concerns, plans to buy tech stocks on dips

Golden Ten Data reported on July 8 that UniSuper, one of Australia’s largest pension funds, is seeking to buy U.S. tech stocks during market pullbacks, disregarding concerns about high valuations and betting that artificial intelligence will drive profit growth over the coming years. The fund’s Chief Investment Officer, John Pearce, stated that UniSuper is structurally overweight in U.S. tech stocks because they are at the “sweet spot” of the AI spending cycle, and that the fund would increase its holdings even if the sector pulls back by 10%. This bullish stance highlights the growing divide among investors regarding the long-term prospects of U.S. mega-cap tech stocks, which have been retreating from last month’s record highs. Pearce said, “Everyone is talking about a bubble, but valuations don’t reflect that. We know they are making significant capital expenditures, but these are fundamentally strong companies with solid growth prospects, so we are very happy to remain long.” UniSuper manages A$166 billion (approximately $115 billion) and has maintained its overweight position in U.S. tech stocks for several months. International equities account for about 35% of its default investment strategy, with Nvidia, Microsoft, and Apple as its largest holdings.