AustralianSuper plans to maintain its focus on the “picks and shovels” of artificial intelligence as volatility sweeps global technology stocks. Mark Hargraves, who leads the fund’s international equities and private equity business, said it expects chipmakers and hyperscaler data centres to withstand the current turbulence in the sector.
The A$430 billion fund’s balanced portfolio includes about A$3.05 billion in Nvidia shares, according to recent filings. It also holds around A$2.3 billion each in Microsoft and Alphabet, along with investments in SK Hynix, SpaceX, Meta, Broadcom and Micron. AustralianSuper has additional Nvidia holdings in other fund options.
Hargraves told Reuters that large language models depend on computing power supplied by hyperscalers’ data centres, with chips driving that capacity. He said the fund adjusts its exposures as opportunities develop and the AI landscape changes.
AI-linked stocks have recently faltered amid concerns that earnings may not support the sector’s high valuations, leading investors to reconsider crowded positions after a prolonged rally. Hargraves said AI and related stocks account for about 40% of the global equities market, and described the theme’s emergence as the fastest he had seen in more than 30 years in equities.
He also said the pace of change in this cycle is faster than in previous ones, contributing to volatility and requiring investors to reassess their positions frequently.
AustralianSuper was an early investor in Anthropic before its public listing, but Hargraves declined to comment on the fund’s plans for the upcoming share sale. He said the listing would give investors greater visibility into the financial forecasts of large language models.
Sources: Investing.com News.