NPS Posts $23 Billion Gain on U.S. Stocks as Big Tech, Chips Rally

South Korea's National Pension Service (NPS) reported a significant increase of about $23.32 billion in the value of its U.S. stock holdings during the second quarter, marking a record valuation gain of around 33 trillion won. This surge was primarily driven by the strong performance of major technology and semiconductor stocks.

As of the end of June, the NPS held shares in 552 U.S.-listed companies, with the total portfolio value reaching $155.08 billion, a 17.8% increase from $131.68 billion at the end of the previous quarter. Despite a slight decrease in the number of holdings by 10, the number of shares held rose by 2.1%. Semiconductor stocks played a pivotal role in the increase, with Micron Technology's holdings surging 242.9% to $3.33 billion following a sharp rally in the chipmaker's shares.

AMD and Applied Materials also saw substantial gains, with their holdings rising by 189.5% and 111.6%, respectively. The pension fund adopted a strategic approach to the semiconductor sector, increasing investments in Broadcom and Texas Instruments while reducing stakes in Intel, Lam Research, and ON Semiconductor. The NPS also expanded its exposure to emerging industries, acquiring SpaceX and Rocket Lab shares.

Cryptocurrency and fintech companies saw increased investments, with the NPS raising stakes in Bitcoin-related firms and Robinhood. Additionally, the pension fund bolstered its positions in major U.S. defense companies amid growing geopolitical concerns. Despite some mixed moves in the media sector, Nvidia emerged as the NPS's largest U.S. stock holding, followed by Apple, Alphabet, Microsoft, and Amazon.