Australian pension fund UniSuper plans to buy tech stocks on dips, ignoring AI bubble concerns.

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BlockBeats news, July 8 - UniSuper, one of Australia's largest pension funds, is seeking to buy into U.S. tech stocks during their pullback, ignoring concerns over high valuations and betting that artificial intelligence will drive earnings growth for years to come.

The fund's chief investment officer, John Pearce, said the fund is structurally overweight U.S. tech stocks because they are in the "sweet spot" of the AI spending cycle, and will even add positions if the sector falls 10%. This bullish stance underscores growing divergence among investors over the long-term prospects of U.S. mega-cap tech stocks, which are retreating from record highs reached last month.

Pearce said: "Everyone is talking about a bubble, but valuations don't reflect that. We know they are spending heavily on capex, but they are fundamentally sound companies with good growth prospects, so we are very happy to continue being long." UniSuper, which manages A$166 billion (approximately US$115 billion), has maintained an overweight position in U.S. tech stocks for months. International equities account for about 35% of its default investment strategy, with Nvidia, Microsoft, and Apple being its top holdings.

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