Norway’s $1.9 trillion sovereign wealth fund had its best quarter since late 2023, earning a 6.4% return in the second quarter, thanks mostly to strong global stock market gains. Equities rose 8.45%, and unlisted infrastructure investments climbed 8.1%. Fixed income and unlisted real estate also added small positive returns, according to Norges Bank Investment Management (NBIM). The world’s largest wealth fund, which owns about 1.5% of all listed stocks globally, keeps over two-thirds of its assets in equities, all outside of Norway.
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In the first half of the year, it increased investments in companies like Nvidia (NVDA), Apple (AAPL), TSMC (TSM), and Tesla (TSLA), while reducing its positions in Microsoft (MSFT), Alphabet (GOOGL), Meta (META), Broadcom (AVGO), and several major oil companies. For the first half of 2025, the fund returned 5.7%, coming in just 0.05% below its benchmark. European stocks led the way with a 17.8% gain, compared to just 1.4% in North America. CEO Nicolai Tangen emphasized that the fund’s size means it must focus on long-term, broad diversification, with more than half of its portfolio in the U.S. and just under a third in Europe.
Furthermore, a stronger Norwegian currency slightly reduced returns, which lowered the fund’s value by 0.8% to 19.6 trillion kroner ($1.9 trillion) at the end of the quarter. Interestingly, the fund was created in the early 1990s to invest Norway’s oil and gas revenues for future generations. In addition, NBIM follows benchmark indexes with holdings in around 8,700 listed companies across 44 countries, and a fixed-income portfolio weighted toward government bonds.
Which Tech Stock Is the Better Buy?
Turning to Wall Street, out of the stocks mentioned above, analysts think that MSFT stock has the most room to run. In fact, MSFT’s average price target of $623.34 per share implies more than 17% upside potential. On the other hand, analysts expect the least from TSLA stock, as its average price target of $305.37 equates to a loss of 10.1%.
