Pimco's Top-Performing 60/40 Fund Bets AI's Next Winners Are In Asia, From Chips To Rare Earths
Bubble signal: +1 · Overheating evidenceRelevance 70MarketsGlobal
Source: NewsData: AI bubble (EN) · Published 2026-09-05
Summary
The manager of Pimco's top-performing Balanced Income and Growth Fund ($19 billion) says the fund is underweight most hyperscalers and the Magnificent Seven due to soaring AI capex raising debt loads and credit concerns. The fund is overweight Asia, favoring data center components, semiconductors, and cooling systems.
Bubble analysis
This news directly reflects institutional investor concerns about an AI bubble: Pimco is reducing exposure to large US tech stocks due to high valuations and debt, seeking cheaper Asian supply chain plays. This shows skepticism about AI investment sustainability is affecting actual asset allocation.
#ai-capex#asia#hyperscalers#pimco
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