In the latter half of 2025, Norway's colossal $2.2 trillion sovereign wealth fund strategically reduced its substantial positions in the largest US technology giants, according to the government's latest disclosed holdings list. This included trimming its long-standing top holding, the AI chip powerhouse NVIDIA (NVDA.US). By the end of the year, Norges Bank Investment Management (NBIM), the entity managing the fund, had scaled back its stakes in its top four technology holdings, which, besides NVIDIA, encompassed Apple Inc. (AAPL.US), Microsoft Corporation (MSFT.US), and Alphabet (GOOGL.US), the parent company of Google.

The sovereign fund decreased its shareholding in chip leader NVIDIA from 1.32% at the end of June to 1.26% by year-end, while also reducing its stake in Microsoft from 1.35% to 1.26%. Despite these adjustments, both technology behemoths remained among the fund's five most valuable investments, followed sequentially by Alphabet and the cloud computing and e-commerce titan Amazon.com (AMZN.US). Apple retained its position as the fund's second-largest investment.

As part of a broader strategy to streamline its investment portfolio, the sovereign wealth fund exited the stock markets of countries like Moldova and Iceland, while simultaneously adding exposures to Jordan and Panama. Holding approximately 1.5% of all listed companies globally, the fund pared its holdings in over 1,000 companies during the final six months of 2025, reducing its total number of portfolio companies to 7,201 listed across 60 countries, aligning with its portfolio simplification objective. The fund divested from the equity markets of Moldova, Iceland, Croatia, and Estonia, while initiating new positions in Jordan and Panama.

The most recent statistical data reveals that the fund's largest bond holdings continue to be US Treasuries, Japanese Government Bonds (JGBs), and German sovereign bonds (Bunds). Across all asset classes, roughly 53% of its investments were allocated to the US market. An advisory panel appointed by the government cautioned earlier this week that the wealth fund must enhance its preparedness for rising global geopolitical risks. Beyond increasing evidence of tools like tariffs, financial sanctions, and trade controls being used for geopolitical objectives, the fund's complete divestment from US industrial leader Caterpillar Inc. last year also drew criticism from several US Republican lawmakers.

Established in the early 1990s, NBIM's investments adhere to a benchmark index system set by the Norwegian Ministry of Finance, which inherently limits its scope for active management decisions. Its portfolio spans equities, fixed income, real estate, and renewable energy infrastructure, all located outside of Norway. From the perspective of "US-Europe geopolitical dynamics," the Norwegian fund's modest reduction in US tech leaders like NVIDIA, Apple, Microsoft, and Alphabet during the latter half of 2025 appears more indicative of "reducing concentration in high-weight stocks and mitigating political tail risks" as these giants' valuations reached historic highs, rather than signaling a "major withdrawal from the US or a bearish stance on the AI investment theme."

Given that NBIM strictly tracks the benchmark index set by the Ministry of Finance, with limited active management leeway, and considering its concurrent "portfolio simplification" efforts in the second half of 2025—cutting over 1,000 holdings, reducing the total number to 7,201, and exiting some smaller markets while adding Jordan and Panama—a marginal reduction in the high-weight US tech giants within the S&P 500 aligns more closely with an internal "rebalancing/simplification" logic than an expression of a macro view. During nearly the same period, the fund's overall exposure to US assets did not decrease significantly; by the end of 2025, approximately 52.9% of its assets remained in the US, and its holdings of US Treasury bonds actually increased to around $199 billion (representing about 9.4% of the portfolio).

This action resembles a strategic shift of some risk exposure away from the high-volatility, concentrated theme of single tech giants towards assets perceived as more "policy-neutral, highly liquid, and with relatively lower risk appetite," such as government bonds, amid rising geopolitical tensions, rather than an exit from the US market altogether. The Norwegian sovereign wealth fund, managed by NBIM, is widely recognized as the world's largest sovereign wealth fund; its size reached approximately $2.2 trillion by the end of 2025.