Norway's Sovereign Wealth Fund Reports $138 Billion Profit Amid AI-Driven Market Surge

Norway's sovereign wealth fund reported a profit of $138 billion in the first half of 2024, fueled by a 12.5% return in its equity portfolio. The rise was mainly driven by technology stocks and increased demand for AI solutions, despite losses in fixed income, real estate, and renewable energy assets.

Norway's $1.7 trillion sovereign wealth fund, the world's largest, announced on Wednesday a profit of 1.48 trillion Norwegian crowns ($138 billion) in the first half of the year, thanks to a surge in global stock markets.

The fund's equity portfolio enjoyed a 12.5% return from January to June, while its fixed income and real estate assets reported losses of 0.6% and 0.5% respectively. According to CEO Nicolai Tangen, the gain was predominantly driven by technology stocks, amid escalating demand for artificial intelligence solutions.

At the end of June, the fund's most valuable holding was a 1.28% stake in Microsoft, valued at 453.8 billion crowns, followed by stakes in Apple and NVIDIA valued at 390.8 billion and 377 billion crowns, respectively. The fund posted an overall return of 8.6% for the period, slightly below its benchmark index. Investing the state's oil and gas revenues, the fund owns 1.5% of all listed stocks globally and also invests in bonds, real estate, and renewable energy. Nevertheless, its unlisted renewable energy infrastructure portfolio incurred an 18% loss in the first half of 2024.

(With inputs from agencies.)