Australia's retirement fund UniSuper plans to buy technology stocks on dips, ignoring concerns about an AI bubble

BlockBeats News, July 8th. One of Australia's largest pension funds, UniSuper, is seeking to buy the dip in US tech stocks during a pullback, ignoring concerns about high valuations and betting that artificial intelligence will drive earnings growth in the coming years.

The fund's Chief Investment Officer, John Pierce, stated that the fund is structurally overweight in US tech stocks, as they are at the "sweet spot" of the AI spending cycle. Even if the sector pulls back by 10%, the fund will further increase its position. This bullish stance highlights the growing divergence among investors on the long-term outlook for US mega-cap tech stocks, which are currently retracing from last month's all-time highs.

Pierce said, "Everyone is talking about a bubble, but valuations do not reflect that. We know they are investing heavily in capital expenditures, but they are fundamentally sound companies with good growth prospects, so we are very willing to stay long." With assets under management of 166 billion Australian dollars (approximately $115 billion), UniSuper has maintained an overweight position in US tech stocks for months. International equities account for about 35% of its default investment strategy, with Nvidia, Microsoft, and Apple being its top holdings.