Fund Managers Dump Apple and Nvidia Stock as Meta Claims the Power Seat

Fund managers aren’t just rotating — they’re reshuffling their entire portfolios. From Apple (AAPL) to Nvidia (NVDA), the tech darlings of the last cycle are getting clipped as active mutual funds move into old-school financials and dependable healthcare names. A new report from Goldman Sachs (GS) shows that some of the biggest actively managed large-cap mutual funds, overseeing a massive $3.5 trillion, are unloading tech and rotating into banks, insurers, and dividend-heavy blue chips.

And it’s not just small cuts. Apple is now one of the most underweighted stocks in these funds. Fund managers held just 3.3% versus the benchmark’s 6.3%. Nvidia was also trimmed to 3.6%, down from the 5% benchmark weight.

Apple Takes a Hit as CalPERS Joins the Sell-Off

The California Public Employees’ Retirement System (CalPERS), the largest U.S. pension with over $540 billion in assets, also sold 5.1 million Apple shares in Q1. This brought its total holdings down to 34.7 million. The fund said the move was based on systematic, not emotional, decisions — but it coincides with a tough year for Apple.

Shares of AAPL are down 11% in Q1 and another 12% in Q2 so far, massively underperforming the S&P 500, which has gained 3.4% this quarter. Add in Trump’s tariff threats on iPhones built in India and Vietnam, and the road ahead for Apple looks even bumpier.

Meta, AMD, and McDonald’s Get a Seat at the Table

While Apple and Nvidia are getting cut, CalPERS is loading up on Meta (META), AMD (AMD), and McDonald’s (MCD). The fund added 579,150 shares of Meta, lifting its total to 5.5 million shares. Meta’s digital ad biz is holding strong, and the company’s now fighting back against a wave of scams on its platforms.

AMD dropped 15% in Q1, but CalPERS doubled down, buying 325,180 more shares to bring its stake to 3.3 million. The chipmaker beat earnings, raised guidance, and signed a major AI computing deal in Saudi Arabia. It’s bounced 7.4% since March.

Meanwhile, McDonald’s got a happy boost. The pension bought 494,290 more shares, bringing its total stake to 3.5 million. Despite weaker U.S. traffic, the burger chain is leaning into branded promos like its Minecraft Happy Meal, which helped Q2 sales bounce. The stock is up 7.8% in Q1 and holding flat in Q2.

Financials and Healthcare Step In as Tech Stalls

Goldman’s report also highlights a sharp overweight into Wells Fargo (WFC), Bank of America (BAC), Visa (V), and Mastercard (MA) — all classic Buffett-style financials that are riding a wave of Fed rate optimism and Trump-era deregulation bets. The XLF ETF (XLF) is up nearly 4% this year, showing the sector’s resilience.

In healthcare, Cigna is up 15% YTD and Medtronic is holding firm. But not all bets paid off. UnitedHealth Group was another overweight that’s now down over 40%, thanks to earnings drama and management issues.

Rotation or Red Flag?

Active fund managers are clearly moving away from momentum. But this isn’t just about trimming froth. It’s a deeper rotation into value and defensives — a hedge against volatility and a bet on post-tech-cycle growth. With 50% of large-cap mutual funds now beating benchmarks, compared to the historic 37%, it looks like this move is working.

For now.

See the Stock Comparison Breakdown

Want a side-by-side breakdown of all the major stocks in play? Use the TipRanks Stock Comparison Tool to explore price targets, smart scores, and analyst consensus for names like Apple, Nvidia, Meta, AMD, McDonald’s, and more. Click on the image below to dive into the data: