The National Pension Service (NPS) of South Korea is ramping up its investments in artificial intelligence (AI) and technology sectors. Recently, the pension fund significantly increased its holdings in data analytics firm Palantir and Supermicro, while substantially reducing its stake in the Mexican fast-food chain Chipotle.
According to the U.S. Securities and Exchange Commission (SEC) on October 10, the NPS added 2 million shares of Palantir, bringing its total holdings to approximately 5 million shares. Palantir, an AI-based data analytics company, was included in the S&P 500 index last September and has since joined the Nasdaq 100 index. The company’s stock surged by 78% last year and has risen about 47% so far this year, reflecting strong performance.
In addition, the NPS purchased approximately 94,922 shares of Supermicro. The company has rapidly expanded due to investments in AI and data center construction, even joining the S&P 500 in March of last year. However, Supermicro’s stock has recently experienced a correction phase.
Conversely, the NPS sold 609,580 shares of Chipotle, reducing its holdings to 3 million shares. Although Chipotle reported an increase in fourth-quarter net income, it fell short of market expectations. The departure of CEO Brian Niccol and a downward revision of sales guidance have negatively impacted the company’s stock.
As of the first nine months of 2024, the NPS recorded a return of 9.18%. In 2023, it achieved a return of 14.14%, outperforming many major overseas pension funds. Out of a total asset of approximately 1 trillion, overseas stock investment account for about 300 billion, which represents 34.8% of the total assets.
This investment strategy by the NPS highlights its positive outlook on the growth potential of AI and technology sectors, suggesting that it will continue to expand its investments in these areas. This shift is likely to attract increasing interest from U.S. investors in AI and tech stocks.
