UniSuper Plans to Buy Tech Stocks on Dips, Betting on AI Profit Growth

One of Australia’s largest pension funds, UniSuper, is looking to buy U.S. tech stocks during market pullbacks, betting that artificial intelligence will drive profit growth in the coming years. The fund's Chief Investment Officer, John Pearce, stated that the fund is structurally overweight in U.S. tech stocks, as they are at the "sweet spot" of the AI spending cycle, and will increase holdings even if the sector pulls back by 10%. Pearce pointed out that despite growing concerns about a bubble, valuations do not reflect this, as tech stocks are making significant capital expenditures, have solid fundamentals, and good growth prospects. UniSuper has a size of AUD 166 billion (approximately USD 115 billion) and has maintained an overweight position in U.S. tech stocks for several months, with international equities accounting for about 35% of its default investment strategy, and Nvidia, Microsoft, and Apple being its largest holdings.