The National Pension Service's valuation of U.S. stocks jumped about 18% in one quarter. It increased its weighting in major big tech names such as Apple and Microsoft (MS), and the rise in the U.S. stock market aligned with that move.
In the second quarter of this year, the National Pension Service reduced its holdings of Nvidia and Marvell Technology, while aggressively buying Apple, MS, and Amazon. It added SpaceX, which listed in June, to its new portfolio and significantly expanded the weight of artificial intelligence (AI) infrastructure-related stocks.
According to the 13F report (institutional investors' stock holdings) the National Pension Service filed with the U.S. Securities and Exchange Commission (SEC) on the 14th, the valuation of U.S. stocks at the end of the second quarter was $155.075 billion. That was up by $23.4 billion (about 3.31086 trillion won) from $131.679 billion at the end of the first quarter.
The increase in valuation appears to have been significantly influenced not only by new investments but also by the rise in the U.S. stock market. The S&P 500 index rose 14.87% in the second quarter (Apr. 1–June 30). Large-cap tech stocks, which the National Pension Service holds in bulk, also climbed together. In particular, shares of semiconductor maker Micron rose 241.67% over the same period, and the strength in tech stocks lifted the valuation of existing assets.
In the second quarter, the National Pension Service reduced its holdings of Nvidia, its largest position, by 439,562 shares. That was down 0.86% from the previous quarter. Based on the average share price from April to June, the amount corresponds to about $87.45 million. It also trimmed its holdings of Marvell Technology, an AI and data center semiconductor company.
By contrast, it generally bought more of other big tech names. It added 498,222 shares (1.61%) of Apple, 322,336 shares (2.16%) of MS, 528,421 shares (2.58%) of Amazon, and 304,920 shares (2.38%) of Alphabet Class A. It also increased holdings of Meta, Broadcom, and Tesla. While slightly reducing concentration in Nvidia, it diversified the portfolio into other large-cap tech stocks.
Despite some selling, Nvidia remained No. 1 in the National Pension Service's U.S. stock portfolio. Its valuation at the end of the second quarter was about $10.171 billion, accounting for 6.56% of the total. Apple followed at $9.12 billion (5.88%), then MS at $5.685 billion (3.67%), Amazon at $4.998 billion (3.22%), and Alphabet Class A at $4.681 billion (3.02%). The top five stocks made up 22.35%, and the top 10 made up 33.52%.
Among newly added holdings, the most notable is SpaceX. In the second quarter, the National Pension Service added 3.5 million shares of SpaceX to its holdings. Its valuation at the end of June was $598.01 million, about 0.39% of the overall U.S. stock portfolio. It was the largest among stocks newly purchased this quarter.
Assuming it acquired all currently held SpaceX shares at the IPO price of $135 per share, the principal invested would be about $472.5 million. Compared with the end-June valuation, it is estimated to have booked a valuation gain of about $125.5 million (about 177.57 billion won). However, because the 13F does not reveal the actual purchase timing and prices, the actual profit size may differ.
In addition, it newly added global insurance broker Marsh at about $188.1 million and Honeywell Aerospace at about $165.94 million. It also bought Revolution Medicines, TechnipFMC, EXPO, and FedEx Freight Holdings. It invested relatively small amounts in IonQ, Cerebras Systems, Iren, and Rivian.
Among existing holdings, it sharply increased companies related to AI infrastructure. Holdings of Coherent, a supplier of optical transceiver components, jumped about 2,907% from the previous quarter, and Lumentum Holdings rose 2,501%. Neousys Group increased 1,911%, AI cloud company CoreWeave rose 1,195%, and Twilio increased 1,178%. While maintaining a big-tech-centered portfolio, it broadened its investment scope to AI data centers and optical communications and cloud.
Conversely, it cut holdings in Palo Alto Networks by 9.08%, FedEx by 19.02%, and Western Digital by 3.97%. Twenty-six stocks, including Coterra Energy, Pinterest, The Trade Desk, GoDaddy, DraftKings, Oklo, and Snap, were removed from the holdings list.
However, the 13F only shows holdings at the end of the quarter. Because it does not reveal when and at what prices the National Pension Service actually bought and sold shares, it is difficult to draw firm conclusions about investment judgments on individual stocks or future trading directions based solely on changes in holdings.