Australia’s UniSuper Fund to Buy U.S. Tech Stocks on Dips, Ignoring AI Bubble Concerns

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UniSuper, Australia’s largest pension fund, is using on-chain trading signals to buy U.S. tech stocks during pullbacks, despite concerns about an AI bubble. The A$166 billion fund remains overweight in the sector, led by NVIDIA, Microsoft, and Apple. CIO John Pierce said valuations still offer a strong risk-to-reward ratio, with fundamentals intact. The fund plans to increase its positions if the sector declines by 10%. International stocks account for 35% of its default strategy.

ME AI message, on July 8, UniSuper, one of Australia’s largest pension funds, is seeking to buy U.S. technology stocks during their pullback, disregarding concerns over high valuations and betting that artificial intelligence will drive profit growth for years to come. John Pearce, the fund’s chief investment officer, said the fund is structurally overweight in U.S. tech stocks because they are at the “sweet spot” of the AI spending cycle, and it would increase positions even if the sector declines by 10%. This bullish stance highlights growing divergence among investors regarding the long-term outlook for U.S. mega-cap tech stocks, which are retreating from record highs set last month. Pearce said: “Everyone is talking about a bubble, but valuations don’t reflect that. We know they’re making massive capital expenditures, but they are fundamentally strong companies with solid growth prospects, so we’re very happy to stay long.” UniSuper, with assets of A$166 billion (approximately $115 billion), has maintained an overweight position in U.S. tech stocks for months. International equities make up about 35% of its default investment strategy, with NVIDIA, Microsoft, and Apple as its largest holdings. (Source: MLion)

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