Key Takeaways
- • AustralianSuper, Australia's largest pension fund with A$430 billion (US$301.7 billion) in assets, said it will stick to the "picks and shovels" of the AI industry, favoring chipmakers and hyperscaler data centres, as it navigates turbulence in global tech stocks.
- • Mark Hargraves, head of AustralianSuper's international equities and private equity business, told Reuters on October 28 that the fund believes the infrastructure underpinning AI will weather the current sell-off.
- • Per recent filings, the fund holds about A$3.05 billion in Nvidia in its balanced portfolio, with roughly A$2.3 billion each in Microsoft and Alphabet, plus stakes in SK Hynix, SpaceX, Meta, Broadcom and Micron.
- • AI and AI-related stocks account for about 40% of the global equities market, according to Hargraves, who called the sector's rise the fastest emergence of a major investment theme in his more than 30 years in equities.
- • AustralianSuper is a pre-IPO investor in Anthropic but declined to say whether it will participate in the upcoming share sale that would value the company at $1.5 trillion to $2 trillion.
Summary
AustralianSuper, the Melbourne-based pension fund with A$430 billion ($301.7 billion) under management, said it will maintain its focus on the "picks and shovels" of the artificial intelligence industry as global tech equities face unprecedented volatility, according to Reuters. Mark Hargraves, head of the fund's international equities and private equity business, said the fund believes chipmakers and hyperscaler data centres will withstand the current turbulence engulfing the AI sector.
The remarks come as doubts grow over whether AI-sector earnings can justify elevated valuations. Globally, AI shares have stumbled as investors reassess crowded positions after a prolonged rally, although many fund managers remain bullish on long-term demand for AI chips, data centres and related infrastructure. Hargraves said AI and AI-related stocks now make up about 40% of the global equities market and described the speed of the theme's emergence as the fastest he has seen in more than three decades in equities.
According to recent filings cited by Reuters, one of the fund's largest AI-linked exposures in its balanced portfolio is Nvidia, where it holds about A$3.05 billion of stock, with additional Nvidia holdings in other fund options. The fund also owns about A$2.3 billion each in Microsoft and Alphabet, as well as stakes in SK Hynix, SpaceX, Meta, Broadcom and Micron.
Hargraves said that compute demand for large language models is met by hyperscalers' data centres, which are driven by chips, and that the fund has been focused on infrastructure while staying willing to shift exposures as opportunities evolve. He said recent volatility reflects the speed of change in the sector. Hargraves also noted that AustralianSuper is a pre-IPO investor in Anthropic, but would not comment on its intentions in the upcoming share sale that would value the US company at $1.5 trillion to $2 trillion. He said the offering would give investors greater insight into the financial forecasts of large language models.
(Currency conversion: $1 = 1.4253 Australian dollars.)
The remarks come as doubts grow over whether AI-sector earnings can justify elevated valuations. Globally, AI shares have stumbled as investors reassess crowded positions after a prolonged rally, although many fund managers remain bullish on long-term demand for AI chips, data centres and related infrastructure. Hargraves said AI and AI-related stocks now make up about 40% of the global equities market and described the speed of the theme's emergence as the fastest he has seen in more than three decades in equities.
According to recent filings cited by Reuters, one of the fund's largest AI-linked exposures in its balanced portfolio is Nvidia, where it holds about A$3.05 billion of stock, with additional Nvidia holdings in other fund options. The fund also owns about A$2.3 billion each in Microsoft and Alphabet, as well as stakes in SK Hynix, SpaceX, Meta, Broadcom and Micron.
Hargraves said that compute demand for large language models is met by hyperscalers' data centres, which are driven by chips, and that the fund has been focused on infrastructure while staying willing to shift exposures as opportunities evolve. He said recent volatility reflects the speed of change in the sector. Hargraves also noted that AustralianSuper is a pre-IPO investor in Anthropic, but would not comment on its intentions in the upcoming share sale that would value the US company at $1.5 trillion to $2 trillion. He said the offering would give investors greater insight into the financial forecasts of large language models.
(Currency conversion: $1 = 1.4253 Australian dollars.)
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