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*** ONE-TIME USE *** The Apple brand
Nicholas Kamm / AFP by way of Getty Photographs
One of many world’s largest public pensions by belongings made main modifications in its investments in large-cap tech shares as 2021 got here to an in depth.
PGGM of Zeist, Netherlands, minimize investments in
Apple
(ticker AAPL),
Intel
(INTC), and
Qualcomm
(QCOM) inventory within the fourth quarter, and initiated a place in
Nvidia
(NVDA) inventory, based on a type it filed with the Securities and Change Fee.
PGGM, which managed $327 billion in belongings as of Dec. 31., didn’t remark immediately on the inventory trades. “PGGM has a passive technique for listed equities, so we don’t have a particular view on particular firms,” it mentioned in a press release.
The pension offered 1.1 million Apple shares to finish 2021 with 3.6 million shares of the iPhone maker. The inventory rose 34% in 2021, topping the 27% rise within the
S&P 500 index. To date this yr, shares are down 3% whereas the index is down 5.6%.
Close to the top of December, Apple’s market capitalization approached $3 trillion, nevertheless it didn’t cross that mark till early January. One analyst noticed a path for the corporate’s market cap to hit $4 trillion. Apple reported a powerful fiscal first quarter on the finish of January. “Demand for Apple services is materially outpacing provide and when the availability chain normalizes then Apple’s gross sales and margins will solely speed up increased, in our view,” a Citi analyst famous.
Intel inventory hasn’t had the upward trajectory that Apple’s has had. The embattled chip big noticed shares acquire 3.4% in 2021; to this point this yr, shares have dropped 6.8%.
Final yr, analysts overlaying Intel had a skeptical take after the corporate’s spending climbed beneath new CEO Patrick Gelsinger, who instructed us in July the corporate may “triple, quadruple” in worth. Gelsinger was amongst Intel insiders who purchased up inventory on the open market in October.
Late final yr, although, PGGM was promoting Intel inventory, shedding 205,000 shares to chop its holdings to 1.3 million shares.
The pension additionally offered 223,317 Qualcomm shares to finish the yr with 509,533 shares of the maker of wi-fi chips and expertise. Like Intel, Qualcomm underperformed the S&P 500 in 2021, rising 20% To date this yr, Qualcomm shares have dropped 1.9%.
In January, CEO Cristiano Amon instructed us he was bullish on Qualcomm’s long-term outlook. The corporate is a play on a number of rising traits, together with linked vehicles, the metaverse, edge computing, wi-fi fiber, and next-generation laptops. Earnings, reported final week, had been sturdy, however traders weren’t impressed at first.
Not like the opposite two chip makers, Nvidia had a boffo 2021, with shares rocketing 125%. To date this yr, Nvidia inventory has dropped 17%, one of many more-bruised names because the tech sector was socked in a January market droop.
Specific to Nvidia, the corporate’s deal to amass microprocessor design home Arm Holdings from
SoftBank Group
(SFTBY) now appears to have foundered. Different potential Arm consumers together with Intel and Qualcomm don’t look prone to clear regulatory hurdles.
Inside Scoop is an everyday Barron’s characteristic overlaying inventory transactions by company executives and board members—so-called insiders—in addition to giant shareholders, politicians, and different outstanding figures. As a consequence of their insider standing, these traders are required to reveal inventory trades with the Securities and Change Fee or different regulatory teams.
Write to Ed Lin at edward.lin@barrons.com and comply with @BarronsEdLin.
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