Saudi wealth fund’s US stock investments hit $20.6bn in Q2

Saudi Arabia’s Public Investment Fund witnessed a modest rise in its US stock investments, reaching $20.66 billion in the second quarter, up from $20.55 billion in the previous quarter.

The wealth fund has undertaken a significant strategic overhaul of its US portfolio, with notable increases in its stakes in several key technology and financial firms, while reducing its positions in some other notable companies, data from the US Securities and Exchange Commission showed.

Among the most substantial changes, the sovereign fund has more than doubled its investment in Advanced Micro Devices, growing its holdings from 1.08 million shares to 2.31 million. The fund has also significantly increased its position in PayPal, raising its shares from 1.38 million to 4.26 million, reflecting a strong confidence in the payment services sector.

In the technology sector, PIF’s investments have notably expanded. Its holdings in Meta Platforms grew from 268,300 shares to 362,000, and Microsoft saw an increase from 341,900 shares to 481,000. The fund also made a remarkable tenfold increase in its stake in Nvidia Corp., elevating its shares from 159,000 to 1.59 million. Additionally, PIF’s investment in Nu Holdings grew substantially, with shares increasing from 1.18 million to 3.8 million.

This strategic shift aligns with PIF’s broader goals of becoming a global investment powerhouse and playing a pivotal role in shaping the future global economy while contributing to the economic transformation of Saudi Arabia. The fund aims to boost its annual investments to SR150 billion ($39.9 billion) by 2025 and increase assets under management to SR4 trillion.

However, PIF has also reduced its stakes in several companies alongside these aggressive expansions. Investments in Booking Holdings decreased from 77,700 shares to 58,200, and Adobe Inc. saw a slight reduction from 442,400 shares to 423,500. The fund also trimmed its position in Cummins Inc., from 1.8 million shares to 1.64 million. In the consumer sector, Starbucks saw a reduction in shares from 3.81 million to 3.68 million, while Salesforce and Visa saw their positions cut from 507,000 to 469,100 and from 908,715 to 802,292, respectively.