Norway’s Sovereign Wealth Fund Posts $138 Billion First-Half Profit Driven by AI-Boosted Tech Stocks

Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund, reported a staggering first-half profit of 1.48 trillion kroner ($138 billion), thanks to significant returns on technology stocks driven by the rising demand for artificial intelligence (AI) solutions. At the end of June, the fund’s value stood at 17.75 trillion kroner.

The overall return for the fund during the first six months of the year was 8.6%, just slightly below its benchmark index. Nicolai Tangen, CEO of Norges Bank Investment Management (NBIM), highlighted that the strong performance was primarily due to the tech sector’s impressive growth, fueled by AI innovations.

The fund’s equity portfolio saw a robust return of 12.5%, while its fixed income and unlisted real estate portfolios experienced marginal losses. However, the fund reported a negative return of 17.7% on its unlisted renewable energy infrastructure portfolio, impacted by higher capital costs during the first half of the year.

Despite the impressive gains, Tangen cautioned that the stock market’s future performance might not replicate the strong growth seen in recent years, citing increased geopolitical risks and global economic uncertainty.

Established in the 1990s to invest Norway’s oil and gas revenues, the sovereign wealth fund has grown to become one of the world’s largest investors, with stakes in over 8,700 companies across more than 70 countries.