Australian superannuation fund UniSuper plans to buy tech stocks on the dips, ignoring concerns about an AI bubble.

One of Australia’s largest pension funds, UniSuper, is seeking to buy U.S. tech stocks amid their pullback, brushing off concerns over high valuations and betting that artificial intelligence will drive earnings growth over the coming years. The fund’s chief investment officer, John Pearce, said UniSuper is structurally overweight U.S. tech stocks because the sector is at the “sweet spot” of the AI spending cycle, and will add to positions even if the sector pulls back by 10%. This bullish stance underscores the growing divergence among investors over the long-term outlook for U.S. mega-cap tech stocks, which have retreated from their all-time highs set last month. Pearce noted: “Everyone is talking about a bubble, but valuations don’t reflect that. We know they are investing heavily in capital expenditure, but these are companies with solid fundamentals and strong growth prospects, so we are very happy to continue holding long positions.” UniSuper, which manages A$166 billion (approximately $115 billion) in assets, has maintained an overweight position in U.S. tech stocks for months. International stocks account for roughly 35% of its default investment strategy, with Nvidia, Microsoft and Apple being its largest holdings.