Calpers pulls back from big tech as AI jitters deepen neocloud sell-off
Calpers, the world's fifth-largest pension fund, has reduced its holdings in the 'Magnificent Seven' tech stocks by 26% amid concerns over high valuations and the sustainability of the AI investment boom. This shift follows warnings from Elon Musk regarding tightening financing for AI data center companies.
Why it matters
The move by a major institutional investor signals growing market skepticism toward the AI-driven tech rally and potential consolidation in the neocloud sector.
Vertaald door AI 1 min leestijd Make preferred on Delen Deel dit artikel Kopieer link X icon X (Twitter) LinkedIn Facebook E-mail Make preferred on Magnificent 7 stock prices year to date (TradingView) Samenvatting Tonen Calpers reduced its combined direct shareholdings in the Magnificent Seven tech stocks by 26% in the first half of 2026, the FT reported. CoreWeave, Cipher Digital and IREN fell in Monday’s pre-market trading after Elon Musk warned of tightening financing for AI data center companies. Calpers, the world’s fifth-largest pension fund, is cutting its exposure to major U.S. technology companies as concerns mount over stretched valuations and the sustainability of the artificial intelligence investment boom, the Financial Times reported.
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